Staffing agency license in New Jersey: PEAA and THSF rules

New Jersey licenses employment agencies under the Private Employment Agency Act, N.J.S.A. 34:8-43 et seq., administered by the Division of Consumer Affairs. The definition is broad: it reaches firms paid by job seekers, firms that supply job seekers to employers on a temporary basis, and firms that procure work for performing artists or models, not just direct-hire agencies. Executive search firms paid solely by the employer have a named statutory exemption as "consulting firms." Temporary help service firms sit in an adjacent but distinct registration category, layered further by a 2023 law aimed specifically at protecting temporary workers.

This page walks through who needs the employment agency license, the named exemption, the separate temporary help service firm track, fees, bond and renewal, and what happens if you place candidates without the right registration. It complements employment agency license requirements, which compares New Jersey against four other states at a higher level.

The statute and who administers it

The Private Employment Agency Act, N.J.S.A. 34:8-43 et seq., defines an employment agency as any person who, for a fee, charge or commission, procures or obtains employment for a job seeker or employees for an employer, supplies job seekers to employers on a temporary basis, procures employment for performing artists or models, or acts as a placement firm, career counseling service, or resume service. The New Jersey Division of Consumer Affairs, Employment and Personnel Services program, licenses and registers the categories that fall under this framework, with implementing regulations at N.J.A.C. 13:45B.

The exemption for executive search

The statute separately defines a "consulting firm," commonly called an executive search firm or headhunter, as a business that identifies, appraises, refers or recommends individuals for employment and is compensated solely by payments from the employer, never directly or indirectly by the candidate. Consulting firms that meet this definition are exempt from the Private Employment Agency Act's licensing requirement. If your firm ever collects any payment from a candidate, even indirectly, this exemption does not apply, and you should confirm your position with the Division of Consumer Affairs before relying on it.

Applying for the license, and the individual agent's license

New Jersey licenses the agency and, separately, the individual employment agents who work in it. N.J.A.C. 13:45B-2.1 requires an owner to obtain an employment agency license, and requires every person who places or refers job seekers on the agency's behalf to obtain an employment agent's license. Plan for both when you set up a New Jersey desk, not just the entity-level license.

Under N.J.S.A. 34:8-47, the application for an employment agency license is made in writing to the Division in the form the Director prescribes, and must state the complete address of the office where the agency will be conducted and enumerate the types of services the applicant intends to provide. N.J.A.C. 13:45B adds further requirements, including:

• Business structure details: sole proprietorship, partnership or corporation, and owner information.
• Character affidavits: affidavits from at least two New Jersey citizens who have known the applicant for at least five years, attesting to good moral character.
• Criminal history disclosure for the applicant.
• The $10,000 surety bond, described below, filed before the license issues.

A license may not be transferred to a new owner without the Director's written consent and payment of the full statutory annual fee by the new holder.

Fees, bond and renewal

As of September 2026, the published figures under N.J.A.C. 13:45B are:

• Annual license fee: $250, under N.J.A.C. 13:45B-7.1.
• Surety bond: $10,000, filed with a surety company approved by the Director before the license is issued, under N.J.A.C. 13:45B-2.3.
• Renewal: every license expires January 1 of the year following issuance, so a license granted mid-year runs for less than a full twelve months before its first renewal is due.

Temporary help service firms: a separate track

New Jersey's Consumer Affairs page lists temporary help service firms as their own category, distinct from licensed employment agencies, alongside consulting firms and career consulting services. On top of whatever registration the Private Employment Agency Act's broad definition would otherwise require, the Temporary Workers' Bill of Rights, effective from 2023, added its own certification requirement for firms placing covered temporary workers: certification by the Division of Consumer Affairs, records kept for six years, anti-retaliation protections, and limits on transportation charges passed to workers. The law also puts a duty on client companies to confirm a staffing firm's certification before using it, which means an uncertified vendor can cost your firm a client relationship even before any state enforcement action follows. Check the Employment and Personnel Services page for which category your firm falls into, since "employment agency" and "temporary help service firm" are handled as separate registrations even where your business model could arguably fall under both.

Operating without the right license

The Private Employment Agency Act requires licensure or registration for an agency to bring a court action to enforce a contract made with a client or a candidate, which means operating unlicensed does not just risk a regulatory penalty; it can cost you the ability to sue to collect a disputed fee. The Division of Consumer Affairs has also pursued public enforcement actions against unlicensed or uncertified staffing operations, including cases resulting in fines and restitution. Treat licensure as a precondition for being able to enforce your own contracts in New Jersey, not just as a box to check before you start placing candidates.

Fees you can charge candidates

Where a New Jersey agency does charge job seekers, the Private Employment Agency Act and its regulations govern the contract terms, not open negotiation. Most professional recruiting and staffing firms charge the employer only, which is also the practical reason many of them qualify for the consulting-firm exemption described above rather than needing the full agency license. If your firm charges applicants anything, have the agreement reviewed against N.J.A.C. 13:45B before you use it; employer-side fee terms are covered separately in how to negotiate recruitment fees.

A checklist before you open a New Jersey desk

NEW JERSEY LICENSING CHECK — [date] — owner: [name]

Our model:
  [ ] Direct hire, paid only by employer (check consulting-firm exemption)
  [ ] Direct hire or contingency, charge candidates a fee (license required)
  [ ] Contract or temp staffing, we employ the worker (check THSF certification)
  [ ] Performing artists / models (employment agency definition applies)

If licensed as an employment agency:
  Entity license application filed (34:8-47)     [ ]
  Individual agent license(s) filed              [ ]
  Character affidavits (2, 5-year acquaintance)  [ ]
  Bond: $10,000 filed                            [ ]
  Fee paid: $250/year                            [ ]
  Renewal date: January 1, [year]                [ ]

If a temporary help service firm:
  THSF certification filed with DCA              [ ]
  Six-year recordkeeping process in place         [ ]
  Transportation charge limits reviewed           [ ]

Written confirmation on exemption, if claimed:
  Asked:   [DCA contact, date]
  Answer:  [summary, file the reply]

Next review: [date]

Re-run this checklist if your firm adds a temporary staffing line to an existing direct-hire desk, or starts charging candidates a fee it did not charge before; either change can move you out of the consulting-firm exemption or into the THSF certification requirement.

What else to check around the license

• Client due diligence. Because the Temporary Workers' Bill of Rights puts a duty on client companies to confirm a staffing firm's certification before using it, an uncertified New Jersey vendor is a problem for the client's own compliance program, not just yours. Expect procurement teams to ask for your THSF certificate number directly.
• Candidate consent to submission. Not part of the licensing statute, but the record that protects a disputed fee. See the right to represent template.
• Pay transparency. New Jersey has its own posting requirements for job listings, layered on top of any licensing question. See pay transparency laws by state.
• Nurse registries and other specialty placement. New Jersey's Consumer Affairs licensing scheme is built around the general employment agency and temporary help categories described above; confirm separately whether a nurse registry or home care referral service you operate needs an additional health-facility license from the Department of Health, since that is a different regulatory track from anything in the Private Employment Agency Act.

None of this changes the core answer for most professional recruiting and staffing firms: confirm which of the three tracks, licensed employment agency, exempt consulting firm, or certified temporary help service firm, matches your actual model, and keep the written basis for that answer on file.