An employment agency bond guarantees the agency will provide legal and honest service on behalf of their clients. The bond safeguards state agencies and and agency clients. A bonded employment agency means the agency is trustworthy and legal to be in business.
Who needs this bond?
Employment agencies that provide services for clients by helping them find a job and in return get payment need this bond. In order to get an employment agency business license, a surety bond can be required to obtain by state or local authorities.
Since employment agencies work closely with their clients, it is crucial that clients are legally protected from any fraud or misconduct by the agency. With this bond, the client is guaranteed they will receive promised service. Also, the employment clients are placed with are guaranteed with this bond they are receiving a legitimate employee.
Bond Amount and Cost.
Unfortunately, there is not one set cost for this bond type since there is not one specific required bond amount. The applicant’s credit is a factor in the cost for the bond. Listed below are some bond amounts by state.
Nevada and Utah– $1,000
South Carolina, North Dakota, Illinois, Hawaii, Washington, D.C., and New York– $5,000
Massachusetts and California– $3,000
How to get this bond.
The application for this bond is simple. At Surety 1, we take all our applications online and they are free. Visit our application page and work with one of our skilled agents. After the bond is received, it needs to be turned in directly to the obligee.