Staffing agency license in Rhode Island: tax certification, not a state license

Rhode Island does not issue a state employment agency license. An 1896-era law still lets each city or town license "employment offices" if it chooses, but the state itself licenses none. The filing that actually matters for a staffing firm is a tax one: any firm that provides workers to clients under a contract must be certified every year by the Division of Taxation, and newer firms post a $50,000 bond. On top of that sit a temporary worker notice law, a ban on transportation charges, PEO registration, and a Department of Health license for nurse staffing.

This page walks through each of those as of October 2026. For states that run full licensing programs, including neighbors Massachusetts and Connecticut, see employment agency license requirements.

Local licensing of employment offices

Title 5, chapter 7, "Employment Agencies," has three sections. Under § 5-7-1, a town or city council or board of police commissioners "may" license "keepers of intelligence or employment offices," set license classes and fees, revoke licenses, and make rules, including on "the charges for obtaining employment." Under § 5-7-2, keeping an office without a required local license costs $10 for each day, and breaking local rules up to $20 per offense.

The language is from 1896 and has not been amended since the 1956 codification. I could not confirm whether any Rhode Island municipality currently issues these licenses. Ask your city or town clerk when you register the business locally, and keep the answer.

The third section, § 5-7-3, requires a $50,000 bond to the Division of Taxation "with surety for payroll and other taxes." It applies only to employment service organizations that generate a payroll, and expressly not to "so called 'permanent' employment agencies."

What applies, by business model

The Division of Taxation certification

R.I. Gen. Laws § 44-30-71.4 defines an employee leasing company as "any individual, firm, partnership or corporation engaged in providing workers to employers or firms under a contract or leasing arrangement." That wording reaches ordinary temporary staffing, not only PEOs. Such a firm must, "as a condition of doing business in this state, be certified by the division of taxation each year," with applications made in July. The certification confirms that withholding, unemployment and temporary disability contributions have been remitted, and "No employee leasing firm may conduct business in this state without the certification."

• Fees. The Division's Form EMP-APP, for employee leasing and temporary help service companies, lists $500 new and $250 renewal. Those amounts are on the form rather than in the statute.
• Bond. Firms not certified for at least two years post a $50,000 bond each year, on Form EMP-B, payable to the Tax Administrator.
• Client exposure. A client that uses an uncertified firm is jointly and severally liable for the unpaid taxes. Expect Rhode Island clients to ask for your certificate before the first assignment, for the same reason clients elsewhere ask for workers' compensation certificates.

Rules on how temp workers are treated

Written notice for every assignment

The Temporary Employee Protection Act, chapter 28-6.10, requires an employment agency to give the worker written notice before "any new job assignment" covering the job description and classification requirements, the estimated length of the assignment, known hazards, the pay rate, benefits and schedule (§ 28-6.10-3). Keep a copy for one year and post a notice of the law. The first violation brings a written notice; a second within five years is $500, and later ones $1,000. A standard assignment confirmation can carry these fields; see the temp assignment confirmation email for a starting point.

Transportation charges

Under § 28-6.11-2, a temporary placement staffing agency may not require a worker to transport other workers or charge workers for transportation. The exceptions are voluntary bus passes, with no more than half the cost deducted on written consent in the worker's primary language, and voluntary agency transport at no more than actual cost and no more than $3 per day. Penalties rise to $1,500 and then up to $2,000 for repeat violations within three years.

No application fees

Under § 28-6.3-1, no employer or agent of an employer may charge a fee for filing an employment application, with a fine of up to $200.

I found no general Rhode Island statute on conversion fees charged to clients or on no-hire clauses outside nursing service agencies.

PEO registration

The Professional Employer Organizations Act of 2004, chapter 5-75, is administered by the Division of Taxation. Under § 5-75-4, no one may provide or advertise PEO services unless registered under the chapter and certified under § 44-30-71.4. Temporary help services are excluded from the PEO definition, though they still need the tax certification.

• Term. August 1 to July 31, renewed annually; group and limited registrations are available, the limited one for out-of-state PEOs with no Rhode Island office and 50 or fewer covered employees there.
• Fees. Initial registration up to $500, prorated; renewal up to $250 (§ 5-75-5).
• Bond. At least $50,000, unless the PEO has been certified by the Division for at least two years (§ 5-75-6).
• Unemployment. The client is the employer for unemployment and temporary disability; the PEO reports under the client's account, and the two are jointly and severally liable (§ 5-75-10).

Nursing service agencies

A nursing service agency, meaning a business supplying registered nurses, licensed practical nurses or nursing assistants on a temporary basis to a hospital, nursing home or other facility, needs a Department of Health license under chapter 23-17.7.1. The agency is deemed the employer, and its workers are not independent contractors. Licenses run for the calendar year, and the department may assess an annual fee of up to $1,000. Under § 23-17.7.1-22, the agency may not recruit from a client it actively serves, and may not require workers to pay liquidated damages, employment fees or other compensation if a client hires them permanently. An annual report must show, for each health care placement, the amount charged, the amount paid to the worker and the amount retained.

Employer accounts

• Workers' compensation. The Department of Labor and Training says employers with one or more employees must carry it. A knowing failure is a felony with up to two years' imprisonment and a civil penalty of up to $1,000 per day, with personal liability for officers (§ 28-36-15). See staffing agency insurance requirements.
• Unemployment and TDI. An employer with one or more employees at any time in a year is covered (§ 28-42-3). Register through the Division of Taxation's business registration, which covers withholding, unemployment, temporary disability and the job development fund. I found no Rhode Island rule requiring temps to contact the agency for reassignment.
• Pay disclosures. Rhode Island requires wage ranges on request and at hire; see Rhode Island pay transparency law.

A Rhode Island checklist

RHODE ISLAND CHECK — [date] — owner: [name]

Model:
  [ ] Employer-paid direct hire: ask city/town about 5-7-1 license
  [ ] Temp/contract, we employ: Taxation certification every July
  [ ] Nurses/CNAs to facilities: DOH nursing service agency license
  [ ] Co-employment of client workforce: chapter 5-75 registration

Taxation certification:
  Form EMP-APP filed ($500 new / $250 renewal)          [ ]
  $50,000 bond (first two years)                         [ ]

Worker protections:
  Written notice before each assignment (28-6.10-3)      [ ]
  No transportation charges beyond exceptions            [ ]

Employer accounts:
  Workers' comp; UI/TDI and withholding registered       [ ]
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