Staffing agency license in Oregon: a bond, not a license, plus special rules

Oregon does not license employment agencies. The licensing sections of ORS Chapter 658 were repealed in 1997. What remains is a bond and a set of fee rules for agencies that charge job seekers, enforced by the Bureau of Labor and Industries (BOLI). Most recruiting and staffing firms never meet that definition because their fees are paid by employers. The licenses that do matter to staffing firms in Oregon sit elsewhere: worker leasing (PEO) licenses from the Department of Consumer and Business Services, health care staffing authorization from the Health Licensing Office, and farm and forest labor contractor licenses from BOLI.

This page covers each, plus the employer accounts every Oregon staffing firm needs. For other states, see employment agency license requirements.

Who the employment agency rules cover

ORS 658.005(4) defines an employment agency as a business engaged in procuring, for a fee, employment for others and employees for employers. The same subsection excludes several groups, and the most important for recruiters is the exclusion for services whose charges are paid, directly or indirectly, by anyone other than the applicant. It also excludes schools that charge no placement fee, job search counseling and coaching businesses, and employment listing services. ORS 658.015 adds exemptions for labor contractors, health care temporary staffing agencies (which have their own regime, below), qualifying nonprofits and labor organizations.

The bond and fee rules for agencies that charge job seekers

The licensing sections, including ORS 658.025, 658.035 and 658.055, are marked repealed by 1997 Oregon Laws chapter 55. Under ORS 658.075, each agency that is covered must still maintain a $5,000 corporate surety bond or irrevocable letter of credit. BOLI's rules are in OAR chapter 839, division 17. The fee rules:

• No fee before work starts. No fee may be required or accepted before the person obtains employment and actually starts work (ORS 658.176).
• Posted schedule. The agency must publish and post its fee schedule and may not charge more. The statute expressly does not set maximum permanent fees.
• Short jobs. For employment lasting under 90 days, the fee may not exceed one-ninetieth of the permanent fee for each day worked. A permanent job that ends within 90 days is reduced to the same level, and the fee can never exceed the person's gross earnings (ORS 658.185).
• Refunds. Due within 10 days of a request; an agency that neither pays nor explains in writing in that time owes an additional amount equal to the refund.
• Paperwork. Written contracts and written job referrals are required, or no fee may be collected.

BOLI can assess civil penalties of up to $2,000 per violation (ORS 658.115), and violating the employment agency sections is a Class C misdemeanor under ORS 658.991.

Worker leasing companies (PEOs)

Under ORS 656.850, no one may perform services as a worker leasing company without a license from the Director of the Department of Consumer and Business Services. The definition excludes a person who provides workers to a client on a temporary basis, which is the line every staffing firm needs to be on the right side of:

• Records decide it. DCBS rules (OAR 436-180) treat a firm as a temporary service provider only if it keeps contemporaneous written records of the temporary arrangement. A firm that supplies both leased and temporary workers without those records can have all its workers treated as leased.
• Fee and term. As of October 2026 the rules list a $2,050 licensing fee, with the license expiring two years after issue and renewal due 90 days before expiry. A limited license is available to out-of-state firms with very few Oregon clients and workers.
• Coverage. The leasing company must provide workers' compensation for leased workers unless the client's coverage is on file.
• Coming change. A 2025 law renames this a PEO license with new definitions, operative July 1, 2027. The new definition also excludes firms that solely provide workers on a temporary basis.

Health care temporary staffing agencies

Oregon regulates health care staffing directly. Under ORS 676.695 to 676.725, a temporary staffing agency supplying health care workers may not operate in Oregon without an authorization from the Health Licensing Office, with one authorization per physical location. As of October 2026 the rules list a $250 application fee, a $2,000 authorization fee, a $1,500 annual renewal and $50 per owner or officer for fingerprints. The Oregon Health Authority sets maximum bill rates, and violations carry civil penalties of up to $500 per day per violation.

On conversion, ORS 676.707 lets a health care staffing agency charge a facility a conversion fee only if both sides agreed to it in their contract. Write it into the agreement before the first placement. For general staffing, Oregon sets no conversion fee rule; see temp-to-perm conversion fee.

Farm, forest and construction labor contractors

BOLI licenses farm and forest labor contractors under ORS 658.405 to 658.511, with bonds of $10,000 for up to 20 employees and $30,000 above that, one-year licenses, and civil penalties of up to $2,000 per violation. Acting without a license is a crime. Construction labor contractors are also licensed, but a staffing agency that carries workers' compensation and pays employment taxes is exempt from that piece. If you supply crews for agriculture, reforestation or construction, check this chapter before the first assignment.

Employer accounts every Oregon staffing firm needs

• Workers' compensation. Every subject employer must maintain coverage under ORS 656.017. See staffing agency insurance requirements.
• Unemployment insurance. Register with the Oregon Employment Department. Under ORS 657.025, employer status generally starts with an employee in 18 separate weeks of a year or a quarterly payroll of $1,000 or more.
• Business and tax registration. Secretary of State filing and Department of Revenue withholding. The setup order is in how to start a staffing agency.

The record that keeps a temp firm out of worker leasing

Because the worker leasing exclusion depends on contemporaneous written records, it is worth deciding what those records look like before the first Oregon order. A practical minimum for each assignment:

• the client's written order, showing the role and expected duration;
• an assignment confirmation to the worker stating that the assignment is temporary;
• the start date and the actual end date, or the date of any conversion to the client's payroll; and
• a note of any extension, with the reason.

Most staffing back-office systems capture these fields already. The point is to keep them, per assignment, in a form you can produce if DCBS asks.

An Oregon checklist

OREGON CHECK — [date] — owner: [name]

Model:
  [ ] Employer-paid direct hire: outside ORS 658.005(4)
  [ ] Candidate-paid fees: $5,000 bond (658.075), posted schedule, refund rules
  [ ] Temp/contract: written records proving temporary basis (OAR 436-180)
  [ ] Co-employment: DCBS worker leasing license (656.850)
  [ ] Health care staffing: HLO authorization per location (676.704)
  [ ] Farm/forest/construction crews: BOLI labor contractor license

Employer accounts:
  Workers' comp in force                          [ ]
  Employment Department UI account                [ ]
  Revenue withholding account                     [ ]
Next review: [date]