Staffing agency license in South Carolina: the Private Personnel Placement Services Act

South Carolina still licenses employment agencies, and its definition is one of the broadest in the country. The South Carolina Private Personnel Placement Services Act, Title 41, Chapter 25 of the Code, requires a Secretary of State license for anyone who charges fees, "whether direct or indirect," for placing people in jobs, and it names executive search firms, consultants and outplacement services expressly. Contingency and retained search paid only by employers is covered. Temporary help services are exempt. Professional employer organizations are licensed separately by the Department of Consumer Affairs.

This page covers who needs the placement license, how to apply (including the unusual lawyer certification), fees, bond and renewal, the fee rules, penalties, PEO licensing and the employer accounts a staffing firm needs. For how South Carolina compares with its neighbor North Carolina and other states, see employment agency license requirements.

Who needs the license

Under § 41-25-20(b), a private personnel placement service is "any person who charges fees, whether direct or indirect" for providing job information, "procuring or attempting to procure employment for applicants," or "procuring or attempting to procure employees for employers." The definition expressly includes "job listing services, employment information centers, executive search firms, outplacement services, career counseling services, consultants, or resume services" and all who market personnel services on a third-party basis. Under § 41-25-20(d), the placement fee includes retainer fees.

Exempt under § 41-25-20(c):

• placement offices of bar, hospital, nursing, engineering, surveying and architecture associations;
• nonprofit educational, religious and charitable organizations;
• temporary help services; and
• government employment offices.

Because "temporary help services" is not defined, a firm that runs both a temp desk and a direct-hire or conversion desk should assume the placement side is covered. The Secretary of State's employment agency page says simply that all employment agencies must obtain a license, renewable every two years by December 31, with a separate application for each location. Out-of-state firms advertising in South Carolina must identify themselves as placement services (§ 41-25-60).

Applying: a license per location and a lawyer's certification

Under § 41-25-30, "No person or firm may engage in the private personnel placement service business in South Carolina unless the person or firm has a current license." The application is filed for each location by the owner, all partners, or the corporate officers plus anyone holding 20 percent of the stock. Two requirements stand out:

• Newspaper notice. Proof of a notice of the application in the newspaper with the largest circulation in the county.
• Lawyer certification. "A certification by a licensed member of the South Carolina Bar that all requirements of the laws of South Carolina have been met." Budget for South Carolina counsel before you file, not after.

Other conditions: no operating from a residence unless the licensee has three years of licensure, the Certified Personnel Consultant designation or a disability waiver; a prior denial or revocation anywhere in the United States bars a license for a period; and licenses are not transferable, so a new owner needs a new license.

Fees, bond and renewal

• Fees. $200 nonrefundable application fee plus $100 license fee, $300 in total, confirmed on the Secretary of State's initial application form (revised January 2023).
• Bond. A "surety bond of three thousand dollars or other security equal to twenty-five thousand dollars." The Secretary of State's bond form uses a $3,000 penal sum.
• Term. Two years, renewed by December 31, with a $100 renewal fee and a $100 late penalty. If a license is not renewed, the Secretary of State orders the business to stop operating and publishes notice of the closure.
• Individuals. There is no separate counselor license.

Fee rules and prohibited practices

There is no percentage cap. The rules focus on disclosure, timing and conduct:

• Contracts. Each applicant receives a copy of the contract with the fee and placement fee schedules (§ 41-25-40(b)).
• 90-day guarantee. Where the applicant pays, each placement is guaranteed for at least 90 calendar days; if the job ends sooner "regardless of the cause," the fee is prorated over 90 days, and an applicant who never reports to work owes nothing (§ 41-25-40(c)).
• Banned practices (§ 41-25-50): registration fees for applicants; charging an applicant unless the services result in accepted employment with a confirmed start date; splitting fees with employers; knowingly inducing a placed employee to leave; procuring someone's discharge; advertising without identifying as a placement service; and fictitious contact names.
• Employers. Under § 41-25-70(c), an employer may not intentionally or knowingly refuse to pay a fee that is due, which gives a licensed firm a statutory footing in a fee dispute. A clear written agreement still matters most; see the placement fee agreement template.
• Records. Applicant, client and job order records are confidential property of the firm, and a former employee may not use them for 180 days after leaving (§ 41-25-80).

I found no South Carolina rule on conversion fees charged by temporary help firms or on no-hire clauses; temporary help services sit outside the chapter.

Penalties

• Criminal. Knowing violations of §§ 41-25-30 to -80 are misdemeanors, with fines up to $500, up to a year in prison, or both. A convicted person loses the right to operate and must surrender the license (§ 41-25-90).
• Civil. Treble actual damages plus costs and attorney's fees for knowing violations of §§ 41-25-50 to -80, along with injunctions, restitution, a receiver or revocation (§ 41-25-100).
• Who enforces. The Secretary of State, the Department of Labor, Licensing and Regulation, the Attorney General, the Department of Consumer Affairs, SLED, solicitors, local police and any person who has been damaged (§ 41-25-110).

PEO licensing under chapter 40-68

Under § 40-68-30, "A person may not engage in or offer professional employer services in this State without holding a license" from the Department of Consumer Affairs. Professional employer services do not include temporary employees.

• Qualifications. Background checks and fingerprints for controlling persons, a South Carolina registered agent, net worth of at least $50,000 on an audited statement no older than six months (or guarantees or letters of credit), and two years of related industry experience.
• Fees. An application fee of $100 per controlling person plus $200 per PEO; license fees of $2,000 in the first year and $1,000 in the second year of the biennium, with $1,500 to renew; plus a biennial assessment based on South Carolina client payroll, from $500 to $4,000. Totals are capped per licensure period.
• Term and education. Two-year licenses, and eight hours of continuing education a year for key management.
• Penalties. Unlicensed operation is a misdemeanor with up to a year in prison or a fine of up to $50,000; administrative penalties run from $1,000 to $50,000 per violation.

Employer accounts

• Workers' compensation. Required unless the employer regularly employs fewer than four employees in the same business in South Carolina or had annual payroll under $3,000 the prior year (§ 42-1-360). The penalty for noncompliance is $1 per employee per day, at least $10 and up to $100 a day, plus loss of common-law defenses (§ 42-5-40). See staffing agency insurance requirements.
• Unemployment insurance. Through the Department of Employment and Workforce, once you pay $1,500 in wages in a quarter or employ someone in 20 weeks (§ 41-27-210). I found no South Carolina statute or regulation requiring temps to contact the agency for reassignment, so do not rely on one.
• E-Verify. Every private employer must use E-Verify within three business days of hiring (§ 41-8-20); see E-Verify requirements in South Carolina.
• Withholding. Register with the Department of Revenue through MyDORWAY.

I found no South Carolina registration for nurse staffing agencies, farm labor contractors or day labor as of October 2026, based on a review of the relevant Code titles.

A South Carolina checklist

SOUTH CAROLINA CHECK — [date] — owner: [name]

Model:
  [ ] Any placement for a fee (incl. employer-paid search): SOS license
  [ ] Temp help only, we employ: exempt (41-25-20(c)); basis on file
  [ ] Co-employment of client workforce: Consumer Affairs PEO license

Placement license (per location):
  Newspaper notice published                           [ ]
  SC Bar member certification                          [ ]
  $300 fees; $3,000 bond or $25,000 security            [ ]
  Renewal by December 31, [year]                       [ ]

Employer accounts:
  Workers' comp (4+ employees)                         [ ]
  DEW account; E-Verify; withholding                   [ ]
Next review: [date]