Staffing agency license in Washington state: fees and rules

Washington licenses employment agencies under the Employment Agency Act, RCW 19.31, administered by the Department of Licensing. Operating one without a license is a misdemeanor. The Act's exemptions are worth reading closely, because temporary service contractors, the category that covers most contract and temp staffing firms, are named exemptions rather than covered businesses, which puts Washington's licensing burden mainly on agencies that charge job seekers for direct placement, career guidance or similar services.

This page sets out who needs the license, who is exempt, the application steps, the current fee and bond amounts, renewal, penalties, and the statutory caps on what an agency can charge a candidate. It complements employment agency license requirements, which compares Washington against four other states at a higher level.

The statute and who administers it

Washington's Employment Agency Act, RCW 19.31, is administered by the Washington State Department of Licensing. RCW 19.31.080 states plainly: "It shall be a misdemeanor for any person to conduct an employment agency business in this state unless he or she has an employment agency license." Fee amounts are set separately in WAC 308-33.

Who is exempt

RCW 19.31 lists several categories outside the licensing requirement, including:

• Temporary service contractors — most contract and temp staffing firms fall here rather than under the general employment agency license.
• Labor unions.
• Proprietary schools licensed under chapter 28C.10 RCW, and nonprofit schools and colleges.
• Career guidance and counseling services.
• Theatrical agencies.
• Farm labor contractors.
• The Washington state employment agency (the state's own public employment service).

Employment directories must register but do not need a full license, under RCW 19.31.100(5). If your firm's model is direct-hire or contingency placement where you charge job seekers, or a career counseling service, plan on the full license; if it is temporary staffing where you employ the worker, confirm the temporary service contractor exemption applies to your specific structure before assuming it does. A firm that both places direct-hire candidates for a fee and separately runs a temp desk should expect to license the first line of business while relying on the exemption for the second, rather than treating the company as a single unit for licensing purposes.

Fees, bond and renewal

As of September 2026, WAC 308-33-105 lists the following fees:

RCW 19.31.090 requires a $2,000 surety bond running to the state of Washington before you conduct business. Licenses expire June 30 each year, under RCW 19.31.110, so plan the annual renewal fee into your calendar regardless of when in the year you first apply. A lapsed license can be reinstated on a showing of good cause and proof of intent to continue operating, provided all accrued fees and penalties are paid first, but a license is never transferable without the Department's consent, and adding an owner, officer or director not named on the original application also requires the Department's consent.

The general manager exam

Washington licenses the person running each office, not just the agency entity. RCW 19.31.100 sets the subject matter for a written, multiple-choice general manager examination, administered by the Department at least once a month, with a minimum passing grade of 75 percent. The $150 exam fee is not refundable, and the application must reach the Department by the first of the month to be scheduled for the following month's exam. One qualified general manager can be designated to oversee up to three offices operated by the same licensee, which matters if you plan to open more than one Washington location before a second manager is licensed. A general manager who passes the exam but stays inactive in the business for more than a year has to retake and pass it again before managing an office.

Penalties for operating without a license

RCW 19.31.080 makes operating an unlicensed employment agency a misdemeanor. Beyond the criminal exposure, an unlicensed agency has no standing to rely on the Act's own fee structure or contract protections, which matters if a placement fee is ever disputed. Renew before the June 30 deadline rather than after; the statute's reinstatement path exists, but it requires clearing accrued fees and penalties first.

Fees you can charge candidates

Washington caps what a licensed employment agency can collect from a job seeker under RCW 19.31.170, as of September 2026:

• 10 percent of the first month's salary if the placed worker never reports for the job.
• 20 percent of gross wages received if the worker's employment is terminated within 60 days.
• 25 percent of the first month's wages for temporary domestic work placements.

These caps apply on top of the fee-schedule filing and review fee noted in the table above; a new or amended contract or fee schedule needs Department review before you use it. Employer-side fee terms are a separate question, covered in how to negotiate recruitment fees.

Theatrical, career counseling and other named categories

Because theatrical agencies and career guidance and counseling services are named exemptions rather than covered categories, a firm operating purely in those lanes does not need the RCW 19.31 license. A firm that mixes lanes, for example running both a licensed direct-placement desk and an exempt temp-staffing division, should treat each line of business on its own facts rather than assuming one license (or one exemption) covers the whole operation.

A checklist before you open a Washington desk

WASHINGTON LICENSING CHECK — [date] — owner: [name]

Our model:
  [ ] Direct hire / contingency, charge job seekers a fee (license required)
  [ ] Temporary service contractor, we employ the worker (exempt — confirm structure)
  [ ] Career guidance / counseling service (exempt)
  [ ] Theatrical agency (exempt)
  [ ] Employment directory only (register, no full license)

If licensed:
  Original application and license fee: $823        [ ]
  Bond: $2,000 filed                                [ ]
  Fee schedule filed and reviewed ($50)              [ ]
  Branch office license(s), if any: $580 each        [ ]
  Renewal date: June 30, [year] — fee $688            [ ]

Fee caps to build into candidate agreements:
  10% first month's salary — no-show                 [ ]
  20% gross wages — terminated within 60 days         [ ]
  25% first month's wages — temporary domestic work   [ ]

Next review: [date]

Re-check this if your firm's mix of direct placement and temp staffing changes; the exemption for temporary service contractors is about your business model, not your company name, so a division that starts charging job seekers directly can move out of the exemption even if the rest of the firm stays within it.

Local business licensing and specialty placement

The RCW 19.31 license is a state credential; it does not replace a city or county general business license. Seattle, Tacoma, Spokane and other Washington cities each run their own business licensing and, in several cases, local business and occupation tax, none of which is waived by holding the state employment agency license. Confirm your specific city's requirement separately when you open an office there. Nurse registries and health care staffing can also intersect with Washington Department of Health licensing for home health and hospice agencies, a health-facility question distinct from the Employment Agency Act; confirm that track separately if your firm places caregivers into patients' homes rather than assuming the RCW 19.31 license, or its exemptions, settles the question for health care placement.