New Jersey Employment/Staffing Agency Bonds

Get Your New Jersey Staffing Agency Bond

Who Is Required To Purchase an Employment Agency Bond?

There are many classifications of employment agencies including:

• Career consulting firms
• Career counseling firms or agents
• Consulting firms (career headhunters)
• Consulting or temporary staffing agencies
• Employment agencies and agents
• Entertainment agencies and agents
• Job listing services
• Nurses registry
• Resume services and agents
• Temporary help service firms

Each of these are classified as an employment agency and are required to purchase a surety bond with the amount of $10,000, except temporary help service firms.

Temporary Help Service Surety Bond

Temporary help service firms are required to purchase a minimum surety bond with a minimum amount of $200,000.

A temporary help service surety bond can include these classifications:

• Protective service workers (police officers, security workers, animal control workers, etc...)
• Food preparation and serving related occupations
• Building and grounds cleaning and maintenance occupations
• Personal care and service occupations
• Construction laborers
• Helpers in construction trades
• Installation, maintenance, and repair occupations
• Production occupations
• Transportation and material moving occupations

We have not helped any temp service firm who's required a bond amount over $200,000 yet. But it's good to know you may be required to purchase a higher bond amount.

Why is a New Jersey Staffing Agency Bond Required?

The Employment and Personnel Services (part of the New Jersey Division of Consumer Affairs) is responsible for the licensing regulations for employment agencies.

These licensing requirements help to ensure only qualified businesses can legally conduct business in the state.

And yet despite the licensing process there will be agencies and agents who will purposefully harm their customers to increase profits.

Examples of these fraudulent actions include:

• Failing to pay owed wages
• Failing to pay required interest on owed wages
• Failing to offer or qualify employees for fringe benefits
• Keeping employees from earning hours so they don't qualify for benefits

If an agency or agent financially harms an employee or group of employees, the employee or employees can make a claim against the surety bond for financial compensation. But only up the bond amount.

The surety bond is the primary tool the Employment and Personal Services to hold agencies and agents accountable to the promises they make to their customers.

How Much Does An Employment Agency Bond Cost?

 

How a Surety Bond Price Is Determined

At a high level, a surety bond's price is determined by a surety.

A surety is an insurance company that underwrites surety bonds. In this case they underwrite employment agency bonds.

Every surety is different and will conduct and independent analysis of each applicant, primarily looking at:

• The personal credit of the owner or owners
• Staffing agency industry experience
• Prior bond claims if any of the ownership has been bonded in the past

Based on these factors the surety will quote their rate.

This is why working with a specialized surety agency can save you potentially hundreds, even thousands, of dollar and considerable time.

 

The $10,000 Employment Agency Surety Bond

As a surety agency, we've worked with our network of A rated sureties and secured low fixed prices for the $10,000 staffing agency bond.

This means you can purchase your bond today with no credit check.

 

The $200,000 Temporary Help Service Firm Bond

This bond is credit driven and this where we can help you save hundreds to thousands of dollars.

Remember, it's our job to find you the lowest possible price, so let's look at example pricing.

The rates in the table are from really good to about average. Pay attention to how one to two percentage points can drastically change the price.

You can see how big of a difference even half a percentage point can make.

And while this can look intimidating, what really matters is how much your bond will cost.

Click here and fill out our online quote form or call a bond specialist at 1-800-608-9950. We will get you, your exact price and there's no obligation to purchase once we do.

So this is free information you can use to make the right decision for your business.

Make sure you ask our bond specialists about financing options which may be available to you.

 

How Long Does It Take To Get Your Employment Agency Bond?

Once you purchase your bond, our issuance team will prepare your bond with the:

• Correct bond form
• The required signatures and seals
• The power of attorney

The Employment and Personal Services will accept a copy of the bond. This means once your bond is ready, we can email it to you.

The issuance process takes less than one business day to complete.

How Long Does An Employment Agency Bond Last?

These employment agency bonds have a bond term of 12 months from the effective date.

The effective date is the "active" date for your bond. You'll provide this to us when we prepare to issue your bond.

This is another great reason to work with a surety agency like Surety Bonds Direct. You're assigned your own bond specialist who manages your bond for you.

They will contact you 30 to 40 days in advance of your bonds expiration date to help you get it renewed. The renewal process requires you to pay a renewal premium.

Once you complete payment your bond remains active. No additional paperwork to complete.

Staffing Agency Bonds And Getting Your New Jersey Business License/Registration

The licensing process has a number of requirements. At a high level these license requirements include the:

• Legal and business address of your business
• Legal names and address of all officers and directors
• Business structure of the business
• Name and address of the primary contact in the business
• Services that will be offered at the agency
• Affidavits of at least two New Jersey citizens who know the applicant or CEO of the business for at least 5 year to attest to moral character
• A criminal disclosure statement
• Fulfillment of the surety bond requirement
• Payment of all relevant fees
• Among a few more depending on the type of staffing services your business provides