New York Employment Agency Bond Guide
If you're getting licensed as an employment agency in New York, you must purchase a surety bond. Read on to learn more and get your bond today!
Bond Overview
- Purpose: To protect agency clients from fraud or misrepresentation
- Who Needs It: Organizations that connect employers and job-seekers in New York
- Regulating Body: The New York Department of Labor – Permits and Certificate Unit
- Required Amount: $5,000 or $10,000, varies by agency type
- Premium Rates: $100 for the statewide license bond
What Is a New York Employment Agency Bond?
The Department of Labor requires employment agencies to purchase a surety bond to ensure ethical business practice under New York Law of General Business Article 11. New York employment agency bonds protect clients from fraud, misstatement, misrepresentation and more.
What Do Employment Agencies Do?
Employment agencies connect job-seekers to potential employers based on qualifications and compatibility. Some common tasks for employment agents include the following:
- Identifying good candidate matches
- Finding contract or temporary hires
- Handling initial screening and recruitment
Most entities that charge a fee for the placement of a candidate with a third-party employer are considered employment agencies.
What Bond Amount Do I Need?
Most New York and New York City employment agencies need a $5,000 bond. However, you need a $10,000 bond if your agency recruits domestic or household workers from outside of the United States or is specifically a modeling agency.
How Much Do Employment Agency Bonds Cost in New York?
New York employment agency bonds cost a flat rate of $100. Or, you can save $50 by selecting a 3-year term for $250 total. Select your bond coverage below to buy instantly online.
If your business is located in New York City, your bond will go through underwriting review to determine exact pricing. Apply now to receive a free quote within one business day.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a New York Employment Agency Bond Work?
By purchasing a New York employment agency bond, you enter a legal contract between three parties:
- Principal: You, the employment agency filing the bond
- Obligee: The Department of Labor* requiring the bond
- Surety: The provider issuing the bond
The purpose of employment agency bonds is to guarantee the principal will fulfill its license obligations and protect clients. If an agency breaks the bond terms, the surety reimburses harmed parties for financial damages up to the bond amount and the principal must repay the surety.
*If you are an employment agency in New York City, your obligee is the Department of Consumer and Worker Protection (DCWP).
How Do I Get an Employment Agency Bond in New York?
SuretyBonds.com provides the fastest and easiest way to get a New York employment agency bond. Just complete these four steps:
- Apply online at SuretyBonds.com
- Get an instant quote and buy online*
- Receive your bond in the mail
- Sign and submit the bond to your obligee
*If your business is in NYC, your bond application requires underwriting. You will receive a quote, then you can purchase online.
How Do I Renew My Employment Agency Bond?
New York employment agency bonds expire annually. A SuretyBonds.com representative will contact you during the renewal period to prepare a new bond and maintain your coverage for another term.
If there is a bond claim, the surety can cancel the policy by giving 15-day’s written notice to the state. If you have a New York City bond, the surety must provide 60-day notice to the city Commissioner of Licenses.
How to Get an Employment Agency License in New York
The Department of Labor oversees employment agency business licensing. To become a licensed employment agency in New York complete the following steps:
- Verify eligibility
- Complete all required forms*
- Submit an application for each agency location
- Pay license fees
- Purchase your surety bond
*Note: Refer to the Department of Labor’s Employment Agency Overview for more detailed information on required materials and licensing process.
What If My Agency Is In New York City?
If your agency is located in New York City, you must be licensed by the DCWP. To become a licensed employment agency in NYC, complete the following steps:
- Obtain an Applicable Business Certificate and commercial space
- Complete an Employment Agency Self-Certification or Theatrical Employment Agency Self Certification
- Submit an application
- Purchase your surety bond
- Submit samples of all contracts you require for employment agency applicants
- Submit fingerprints with IdentoGO
- Pay the applicable license fee(s)
Visit the Consumer and Worker Protection website for more information on NYC-specific employment agency licenses.
