Staffing agency license in Vermont: no agency license, but leasing firms need one

Vermont does not license employment agencies, search firms or temporary staffing companies. I found no private employment agency statute in the Vermont Statutes, and Title 21, the labor title, has no chapter on the subject, not even a repealed one. The one state license that reaches the staffing world is narrower: an employee leasing company license from the Commissioner of Labor under 21 V.S.A. chapter 12, which covers firms that co-employ a client's workforce on an ongoing basis and, notably, bars running a temporary help business through the same entity.

This page covers what that absence means, the employee leasing license, the state of health care staffing rules after the 2026 session, the hiring laws that name employment agencies directly, and the employer accounts a Vermont staffing firm needs. For other states, see employment agency license requirements.

No private employment agency law

Many states still carry an early-twentieth-century employment agency act, or a note showing when it was repealed. Vermont has neither. None of the chapters in the Title 21 table of contents, live or repealed, deals with private employment agencies.

Chapter 15, "Vermont Employment Service," covers the state's public employment offices, not private firms, and I found no Department of Labor page describing a license for recruiters or temp agencies. So, as of October 2026:

• No license, bond or fee filing for contingency or retained search, direct hire or temporary staffing, whoever pays the fee.
• No statutory cap on fees charged to job seekers. I found no Vermont statute limiting placement or registration fees charged to candidates. That does not leave them unregulated: the Consumer Protection Act, 9 V.S.A. § 2453, declares unfair or deceptive acts in commerce unlawful. Charging candidates for jobs that do not exist, or hiding fee terms, is the obvious risk.
• Vendor forms. If a client asks for a Vermont employment agency license number, answer that Vermont does not issue one.

What applies, by business model

Employee leasing companies: the license that exists

Chapter 12, added by 1995, No. 173 (Adj. Sess.), defines an employee leasing company as a business that provides individuals "to perform ongoing services for an indefinite time period" for client companies under employee leasing agreements. Under 21 V.S.A. § 1033, no one may engage in employee leasing in Vermont without a license from the Commissioner of Labor.

• Fees. A one-time, nonrefundable $100 application fee and a $1,000 licensing fee. The license expires one year from the date shown on it, and the renewal application, with the licensing fee, is due at least 60 days before expiry.
• Net worth. Under § 1035, an audited financial statement, prepared within six months of the application by an independent CPA licensed in Vermont, showing adjusted net worth of at least $100,000 or five percent of liabilities, whichever is greater.
• Bond or securities. At least the minimum net worth, which the commissioner can draw on if the company defaults on wages, benefits, workers' compensation or unemployment contributions. The client may not be charged for it. The commissioner may waive it for firms accredited by an approved national accrediting body.
• Vermont presence. Documentation that the applicant maintains a place of business in Vermont, and is licensed in its home state if required there.
• Penalty. Under § 1041, operating or holding out as an employee leasing company without a license carries a fine of up to $15,000.

The Department of Labor's application packet (form EL-7) asks for a $100,000 surety bond or letter of credit, a list of Vermont clients, workers' compensation proof for each client and a copy of each leasing agreement. It is dated 2005, so confirm current forms with the department's Employer Services Unit.

Temporary help is a different business, by law

Section 1031(8) defines a "temporary help company" as one that hires its own employees and provides them to another business "for a finite period of time in special or unusual situations," such as absences, skill shortages, seasonal workloads and projects. Section 1033(b)(3) then requires every leasing applicant to certify that it "does not conduct a temporary help business through the same entity as the employee leasing business."

So a firm supplying temps for finite assignments needs no license, and a staffing firm adding a PEO-style offering must put it in a separate entity. If your "temps" have worked at one client for years with no planned end, take advice on which side of the line you are on.

Ongoing duties for licensees

• Register with the Department of Labor, the Department of Taxes, the Secretary of State and the IRS within 10 days of licensure, and notify leased employees of the arrangement within 10 days of each agreement.
• Pay unemployment contributions and workers' compensation premiums on the client's experience rating, and file a separate quarterly contribution report (form C-101) under each client's account, per the department's form EL-5.
• Send the department each new leasing agreement within 10 days, notice of each termination within 10 days, and a client list by December 31 each year.
• Run a grievance system and give each leased employee a manual of terms and conditions.

Health care staffing: no registration found

Several states now register health care staffing agencies and restrict their contract terms. I could not find any Vermont statute or agency program that does so as of October 2026, and searches of the Department of Disabilities, Aging and Independent Living and the Office of Professional Regulation turned up none. Two 2026 bills touched the subject:

• Act 133 (H.583), effective July 1, 2026, added 18 V.S.A. chapter 233 on clinical decision making. It defines a "health care staffing company" as a business "providing or procuring health care personnel for temporary employment or contracting by a health care facility," then lists such companies among the entities exempt from its new private equity and hedge fund ownership reporting to the Green Mountain Care Board.
• S.230 would have added 21 V.S.A. § 495q, voiding provisions in contracts with health care providers that restrict where they can practice after the relationship ends, limit notice to patients, or bar disparaging statements. The Governor vetoed it on June 18, 2026, and the bill record shows no override.

So conversion fees, no-hire clauses and noncompetes in Vermont health care staffing contracts rest on the contract and general law, not a staffing statute. Draft them to be defensible anyway; see temp-to-perm conversion fee for how declining fees are usually written. Your nurses and aides still need licenses valid for practice in Vermont.

Hiring laws that name employment agencies

Vermont skipped licensing but did write agencies into its Fair Employment Practices Act. 21 V.S.A. § 495d(3) defines an employment agency broadly, as anyone in the business of advertising, advising, classifying, training or referring people for employment in Vermont, or who does those things at an employer's direction. Under § 495, an agency may not:

• publish a job notice or advertisement indicating a preference or limitation based on a protected characteristic;
• fail or refuse to classify properly or refer anyone for employment because of a protected characteristic; or
• retaliate against someone who complains.

Under § 495b, the Attorney General, a State's Attorney or an aggrieved individual can enforce these rules. Three other chapter 5 rules affect agency recruiting because "employer" includes an employer's agent:

• Pay ranges in ads. Since July 1, 2025, § 495p requires employers with five or more employees to include compensation or a range in ads for Vermont job openings. See Vermont pay transparency law.
• Salary history. § 495m bars asking about current or past pay. See salary history ban states.
• Criminal history. § 495j bars criminal history questions on the initial application form, with exceptions where a law disqualifies people for certain offenses, and carries a civil penalty of up to $100 per violation.

Employer accounts every Vermont staffing firm needs

• Unemployment insurance with the Vermont Department of Labor; the staffing firm is the employer of record for its temps.
• Workers' compensation under 21 V.S.A. chapter 9. See staffing agency insurance requirements.
• Withholding with the Department of Taxes, and Secretary of State registration for out-of-state entities.

The full setup sequence is in how to start a staffing agency. Neighbors differ: New Hampshire registers nurse agencies (see staffing agency license in New Hampshire), and Massachusetts licenses employment agencies through its Department of Labor Standards (see staffing agency license in Massachusetts).

A Vermont checklist

VERMONT CHECK — [date] — owner: [name]

Model:
  [ ] Search / direct hire / temp: no state agency license
  [ ] Candidate fees: no statutory cap; written terms,
      nothing deceptive (9 V.S.A. 2453)
  [ ] Co-employment of client workforce: Commissioner of
      Labor license ($100 + $1,000/yr; $100K net worth/bond)
  [ ] Leasing and temp help in SEPARATE entities (1033(b)(3))

Health care facilities:
  [ ] No registration found; contract terms per contract
  [ ] Watch for a revived health care noncompete bill

Ads and screening (21 V.S.A. ch. 5):
  [ ] No discriminatory ads or referrals (495)
  [ ] Pay range in Vermont job ads (495p)
  [ ] No salary history (495m); no conviction box (495j)

Employer accounts:
  VDOL UI account; workers' comp; withholding          [ ]
Next review: [date]

Re-check after each legislative session, and again if you start co-employing a client's regular staff.