Staffing agency license in West Virginia: Division of Labor approval and monthly reports

West Virginia still licenses employment agents under a long-standing article of its labor code, and unlike most states that kept a license, it does not exempt firms paid by employers. Chapter 21, Article 2 of the Code requires an employment agent to be licensed by the State Tax Commissioner after the Commissioner of Labor approves the application in writing, and to send the Division of Labor a record of placements every month. The Division of Labor reads the law as reaching any business that places people on someone else's payroll, and exempts temporary staffing firms that place their own employees.

This page covers who needs approval, how to get it, the monthly report, the prohibited practices in the Division's legislative rule, penalties, PEO licensing and the employer accounts every West Virginia staffing firm needs. For other states, see employment agency license requirements.

Who needs approval

W. Va. Code § 21-2-4 defines an "employment agent" broadly: every person, firm, corporation or association, other than municipal corporations and church and charitable associations, that gives job seekers information enabling them to find work, gives employers information enabling them to find help, or keeps a register of either, whether from a fixed office, on the streets or as a side line to another business. Section 21-2-15 adds that the article does not apply to anyone employing labor for their own business in the state.

The Division of Labor narrows this in practice. Its employment agencies page says "only those agencies that make placements for individuals which are not on their own payroll are required to register," and that "temporary employment agencies that make placements of their own employees with other companies to perform work for a fee are not required to register." Its fact sheet, citing 42 C.S.R. 1, defines an employment agency as "any business who, for a fee, procures or attempts to procure employees for persons seeking the service of employees."

The temp-to-hire row is a judgment call I could not resolve from the Division's materials. If your temp desk regularly converts workers for a fee, put the question to the Division in writing.

How to get approved

Under § 21-2-7, no employment agent may operate for profit or take any fee without a license from the State Tax Commissioner, and the Tax Commissioner may not issue it until the Commissioner of Labor "shall have approved in writing the application." The license must be posted conspicuously, is not transferable, and the application must include the applicant's Social Security number. Section 21-2-8 limits licenses to citizens of the United States.

The Division of Labor's fact sheet (July 2016) says there is no official application form. You send:

1. A letter of application to the Commissioner of Labor, giving the names and addresses of the licensed persons; the exact business name, address and any DBAs; the applicants' occupations or business affiliations over the last five years; the names and addresses of everyone financially interested, including partners and profit sharers; any arrest record; the types of referrals contemplated; and United States citizenship status.
2. A completed West Virginia Business Registration Application; the fact sheet says no fee is required for it.
3. Sample placement contracts, or, if new applicants sign no contract, a statement saying whether applicants will be charged a fee and how much.
4. A schedule of all client placement fees.

Once approved, the Division sends the business registration application and a copy of its approval letter to the Tax Department and returns the original approval letter to the agency for posting. A firm that already holds a West Virginia business registration has the employment agency category added to it. Under § 21-2-9 the Tax Commissioner must refuse a license to an applicant found unfit, with a prior revocation, or on unsuitable premises.

Monthly reports

Section 21-2-11 requires a record of everyone directed to employment and a monthly copy sent to the Commissioner of Labor by the 10th of the following month, plus a copy of the fee schedule. The Division accepts reports by mail or email to its Wage and Hour Section, with no required form, as long as each placement shows:

• name and address;
• job classification;
• hourly rate or salary;
• the placement fee; and
• whether the employer or the applicant paid it.

Build this into your month-end close. Most applicant tracking systems can export placements by month; add the fee and payer fields and the report takes minutes.

Prohibited practices

The fact sheet lists the prohibitions in 42 C.S.R. 1-7. A private employment agency may not:

• charge any fee for registering applicants above $1.00;
• split fees with an employer, its employees or anyone else served;
• make false promises or give misleading information it knew or should have known was false;
• try to get anyone fired, or unduly influence an employee to quit so the agency can place them elsewhere;
• require applicants to subscribe to publications or services, or contribute to advertising costs;
• refer anyone to a workplace with a strike, lockout or labor dispute without telling them so in writing; or
• use a name that could be confused with a government agency.

The rule against unduly influencing employees to quit deserves attention from search firms, since recruiting employed candidates is the job. Keep outreach factual and avoid pressure tactics or disparaging the current employer.

Penalties

Under § 21-2-14, operating without complying with the article is a misdemeanor with a fine of $100 to $500 per offense, or 30 days to six months in jail, or both. Violating any other provision or a rule of the Commissioner of Labor is a misdemeanor with a fine of $50 to $200, up to 30 days in jail, or both.

PEO licensing with the Insurance Commissioner

Professional employer organizations are licensed by the Insurance Commissioner under W. Va. Code Chapter 33, Article 46A. The article sets a $200 fee for filing an application or a renewal and $100 for annual reports, and requires at least $100,000 in working capital or a bond, letter of credit or securities of $100,000, plus any working capital deficit. A limited license is available for PEOs with no more than 50 covered employees in the state, and temporary help services are excluded from the PEO definition.

Health care staffing and employer accounts

I found no West Virginia statute requiring nurse or health care staffing agencies to register as of October 2026. A health care staffing firm that places its own employees falls under the temp exemption; one that places nurses directly on facility payrolls needs Division of Labor approval like any other agency.

• Unemployment insurance with WorkForce West Virginia.
• Workers' compensation through a private insurer or approved self-insurance. See staffing agency insurance requirements.
• Withholding and business registration with the State Tax Department.
• E-Verify rules; see E-Verify requirements in West Virginia.

Neighboring states mostly do not license: Virginia repealed its chapter in 1996 (see staffing agency license in Virginia) and Kentucky in 2000 (see staffing agency license in Kentucky).

A West Virginia checklist

WEST VIRGINIA CHECK — [date] — owner: [name]

Model:
  [ ] Direct hire or search (any payer): Division of Labor
      approval letter + Tax Commissioner license, posted
  [ ] Temp staffing on our payroll: exempt; conversion-fee
      question asked in writing
  [ ] Co-employment: Insurance Commissioner PEO license

Approved agencies:
  [ ] Monthly placement report by the 10th (name, address,
      job, pay, fee, who paid)
  [ ] Fee schedule on file with the Division
  [ ] Registration fee to applicants no more than $1.00

Employer accounts:
  WorkForce WV UI; workers' comp; Tax Dept; E-Verify     [ ]
Next review: [date]

Re-check if your temp desk starts doing direct placements, because the first placement onto a client's payroll brings the approval and monthly reporting with it.