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California Employment Agency Bond

What is an employment agency surety bond?

An employment agency, also referred to as a staffing, recruitment or temporary agency, searches for, interviews, and screens applicants for job placement — temporary, permanent, or both. An employment agency surety bond adds a level of security and assurance for job seekers. It also communicates credibility by showing that your staffing agency has the financial responsibility to operate in an ethical and professional manner when pairing job seekers with employers.

How much do staffing agency bonds cost?

The annual premium for an employment agency surety bond is 1% – 1.5% of the bond amount required. For example, the amount you pay could be as little as 1% of the bond amount. Every state determines the bond amount, so check with your state's business licensing authority.

The cost of a surety bond varies based on your credit rating, business finances and your professional experience. So, the rate you pay is based on the risk you pose to the surety company. If credit has been an issue in the past, the percentage rate used to calculate the amount of your employment agency bond is likely to be higher.

Cost of Employment Agency Surety Bonds

State Bond Amount Cost* (Annual Premium)
Arizona $5,000 $100
Arkansas $100,000 $1,000
California $3,000 $175 (2 years)
Hawaii $5,000 $100