Staffing agency license in Maryland: the repealed license and live rules
On this page
- What was repealed, and when
- Who the remaining rules cover
- Rules for agencies that charge job seekers
- Health care staffing: licensed by the Department of Health
- PEOs: no registration, but UI duties
- Employer registrations every Maryland staffing firm needs
- Working the Mid-Atlantic from a Maryland office
- A Maryland checklist
- Questions people ask
Maryland no longer licenses employment agencies. The legislature largely ended state regulation of traditional agencies in 2003, and the Maryland Department of Labor's employment agency page now says the Employment Agency Law was repealed effective July 1, 2013, by Acts 2013, chapter 224. That 2013 bill removed the remaining $7,000 penal bond. Staffing firms and employer-paid recruiters were already outside the law's definition.
The full picture is a little messier than the Department's one-line notice. Several conduct sections for agencies that charge job seekers are still in the Business Regulation Article, health care staffing is licensed by the Department of Health, and PEOs have unemployment insurance duties without a registration statute. This page sets out each. For states that still license agencies, see employment agency license requirements.
Not legal advice. This summarizes the Maryland Business Regulation Article, Title 9, the Health-General Article and COMAR as published by the Maryland General Assembly and Maryland agencies, as of October 2026. Confirm your position with the Maryland Department of Labor, the Office of Health Care Quality or counsel.
What was repealed, and when
- 2003. House Bill 651 removed the licensing sections. The fiscal note for the 2013 bill describes this as the point at which the General Assembly largely ended Department regulation of traditional employment agencies.
- 2013. Acts 2013, chapter 224 (Senate Bill 305), eliminated the remaining $7,000 penal bond, according to its fiscal and policy note, effective July 1, 2013.
Two leftovers can mislead. COMAR 09.12.11 is still published and still refers to out-of-state agencies obtaining an employment agency license and bond, and some third-party sites still quote a $200 license and $7,000 bond. The statute no longer supports either. There is no Maryland employment agency license to apply for as of October 2026.
Who the remaining rules cover
Business Regulation § 9-101(c) defines an employment agency as a person who, for a fee, obtains or attempts to obtain employees or employment, provides information that helps clients find work, books entertainment and modeling engagements, or recruits workers from outside the continental United States. Section 9-101(c)(2) then excludes a person that only:
- directly employs individuals to provide part-time or temporary services;
- acts as a lawyer obtaining immigrant visas;
- receives a fee paid wholly by an employer, without collecting from job seekers or requiring them to sign a contract; or
- operates a nursing referral service agency licensed under the Health-General Article.
So a temp staffing firm and a contingency or retained search firm paid only by employers are outside the definition. The remaining rules matter to agencies that charge candidates, including talent and modeling agencies that take a fee from performers.
Rules for agencies that charge job seekers
| Rule | Section |
|---|---|
| No registration fee and no payment collected in advance | § 9-302 |
| No confession-of-judgment notes from clients | § 9-302 |
| Job ends within 90 days, client discharged without fault or quits with just cause: fee capped at the lesser of 20% of compensation received or 75% of the permanent fee | § 9-306(a) |
| Job ends within 90 days, client discharged for cause or quits without just cause: fee capped at 75% of the permanent fee | § 9-306(b) |
| Clients earning at or below minimum wage: limits on how much of the fee can be taken per pay period | § 9-307 |
| Travel expense reimbursement in listed situations | § 9-308 |
| Records and receipts | §§ 9-303, 9-305, 9-309 |
Under § 9-401, a person who violates the title is guilty of a misdemeanor, with a fine of up to $1,000, up to one year in prison, or both. Because there is no license, there is no separate offense of operating unlicensed.
None of these sections limits what you charge an employer, and I found no Maryland statute restricting temp-to-perm conversion fees for general staffing. Those are matters for your client agreement, negotiated like any other commercial term.
Health care staffing: licensed by the Department of Health
Health care is where Maryland still requires a license before you place anyone:
- Health care staff agencies. Under Health-General § 19-2001, an agency must be licensed by the Office of Health Care Quality before referring health care practitioners, including nurses, nursing assistants and allied health workers, to a health care facility. Rules are at COMAR 10.07.03, and the license is annual. Penalties escalate to $2,500, $5,000 and $10,000 per violation for first, second and third offenses. I could not confirm the current license fee.
- Nursing referral service agencies. Health-General §§ 19-4B-01 to 19-4B-06 license agencies that screen and refer nurses or aides for home care. Operating unlicensed is a misdemeanor.
- Residential service agencies. Home care providers and nurse registries are licensed as residential service agencies under Health-General § 19-4A-01.
PEOs: no registration, but UI duties
Maryland has no PEO registration or licensing statute that I could find as of October 2026; a 2009 registration bill was referred to interim study and did not pass. The unemployment insurance regulation, COMAR 09.32.01.26, does apply: a PEO is subject to the rights and obligations of employing units, must notify the Secretary within 30 days of taking on a client's workers, and must file an annual client report by December 31. The regulation excludes temporary help firms.
Employer registrations every Maryland staffing firm needs
- Workers' compensation. Labor and Employment § 9-402 requires each employer to secure compensation for all covered employees. A temp firm is the employer of the people it places, so this starts at the first shift; see staffing agency insurance requirements.
- Unemployment insurance. Register with the Maryland Department of Labor's Division of Unemployment Insurance.
- Business and tax registration. Entity filings with the State Department of Assessments and Taxation and withholding registration with the Comptroller. The setup order is in how to start a staffing agency.
- Pay transparency. Maryland's posting rules apply to postings you write; see pay transparency law in Maryland.
Working the Mid-Atlantic from a Maryland office
Many Maryland firms recruit across the Baltimore-Washington corridor and into neighboring states, and the answer changes at each border. Maryland's lack of a license does not travel with you:
- Virginia also has no employment agency license; its chapter was repealed in 1996. PEOs register with its Workers' Compensation Commission. See staffing agency license in Virginia.
- Pennsylvania repealed its Employment Agency Law in 2014, so there is no general license there either.
- New Jersey does license employment agencies and certifies temporary help service firms, and its clients must check that certification. A Maryland firm placing temps into New Jersey should read staffing agency license in New Jersey first.
The employer side follows the worker, not your office. A temp who works in Virginia or Pennsylvania needs that state's unemployment insurance, withholding and workers' compensation coverage, even if every recruiter on the desk sits in Maryland.
A Maryland checklist
MARYLAND CHECK — [date] — owner: [name]
Model:
[ ] Employer-paid direct hire: excluded by 9-101(c)(2), no license
[ ] Temp/contract, we employ: excluded by 9-101(c)(2), no license
[ ] Candidate-paid fees (incl. talent/modeling): 9-302 to 9-309 rules
[ ] Health care practitioners to facilities: OHCQ license (19-2001)
[ ] Home care referral or registry: 19-4B or 19-4A license
[ ] Co-employment: COMAR 09.32.01.26 notices
Employer accounts:
Workers' comp in force [ ]
Division of UI employer account [ ]
Comptroller withholding; SDAT filing [ ]
Next review: [date]If a client's vendor portal asks for your Maryland employment agency license number, the accurate answer is that the license was repealed; cite Acts 2013, chapter 224, and attach your workers' compensation certificate instead.
Questions people ask
Does Maryland require an employment agency license?
No, as of October 2026. The Maryland Department of Labor states that the Employment Agency Law was repealed effective July 1, 2013, by Acts 2013, chapter 224, which removed the remaining bond requirement after licensing had largely ended in 2003. Conduct rules for agencies that charge job seekers, in Business Regulation §§ 9-302 to 9-309, remain in the code.
Are temporary staffing firms and employer-paid search firms covered by Maryland's employment agency law?
No. Business Regulation § 9-101(c)(2) excludes a person that directly employs individuals to provide part-time or temporary services, and a person whose fee is paid wholly by an employer without collecting anything from job seekers or requiring them to sign a contract.
What can a Maryland agency charge a job seeker if the job ends quickly?
Under Business Regulation § 9-306, if the client is discharged without fault or leaves with just cause within 90 days, the fee is capped at the lesser of 20 percent of total compensation received or 75 percent of the permanent placement fee. If the client is discharged for cause or quits without just cause within 90 days, the cap is 75 percent of the permanent placement fee.
Do health care staffing agencies need a Maryland license?
Yes. Under Health-General § 19-2001, a health care staff agency must be licensed by the Maryland Department of Health's Office of Health Care Quality before referring health care practitioners such as nurses and nursing assistants to a health care facility. Nursing referral service agencies and residential service agencies have separate licenses.