Surety Bond Encyclopedia

Employment Agency Bond - City of New York, NY in New York

Brief Summary

The amount of this bond depends on what your agency does. Most New York City employment agencies post $5,000, while agencies that recruit domestic or household workers from outside the United States or run a modeling agency post $10,000. Get the tier right, attach the signed bond and paid receipt, and the bond is done for the full license period.

New York General Business Law section 177 requires every licensed employment agency to file a surety bond. In New York City the license is issued by the Department of Consumer and Worker Protection (DCWP), and the bond is $5,000 for most agencies or $10,000 for agencies that recruit domestic or household employees from outside the United States or conduct a modeling agency. The bond names the City of New York as Certificate Holder.

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How to Apply for a Employment Agency Bond:

Confirm the tier: $10,000 if you recruit domestic or household employees from outside the United States or conduct a modeling agency, $5,000 for all other agencies.
Have the legal business name, any DBA and the premises address exactly as they will appear on the DCWP application.
Provide owner information for the surety's credit review and approve the quoted premium.
Pay the premium and obtain the signed bond naming the City of New York as Certificate Holder, plus the receipt showing it is paid in full.
Submit the bond and receipt with the Basic License Application, self certification, contracts, fingerprints and license fee.

Detailed Information About the New York Employment Agency Bond:

Which bond amount applies

General Business Law 177 sets two amounts. The standard employment agency bond is five thousand dollars. It rises to ten thousand dollars for an agency that recruits domestic or household employees from outside the United States or that conducts a modeling agency. DCWP applies the same two tiers on its license checklist. The bond may be written by two or more individual sureties or by a duly authorized surety company, and it is payable to the people of the state of New York or of the city of New York, as the case may be. For a New York City license, DCWP requires the bond copy to name the City of New York as Certificate Holder.

Who needs the license, and who does not

DCWP requires the license for any business that provides job assistance for a fee. It lists four types of businesses that do not need it: staffing agencies that are the employer and issue W-2 forms to the workers they contract out, theatrical personal managers whose primary business is managing artists, model management companies that may instead fall under the New York State Fashion Workers Act, and executive search firms that place only commercial, clerical, executive, administrative and professional applicants and never charge the applicant a fee of any kind.

What the bond guarantees

Under GBL 177 the bond secures compliance with Article 11 of the General Business Law, payment of damages caused by misstatement, fraud or unlawful acts of the licensee or its agents and employees, and payment of fines imposed by the commissioner. If a surety becomes insolvent or financially irresponsible in the commissioner's judgment, a new bond must be filed within ten days or the license may be revoked. GBL 176 requires an additional bond for each additional license.

License term and fees

The DCWP license runs two years and expires May 1 in even years. The fee depends on the number of placement employees and when you file. A full term license filed between May 2 of an even year and April 30 of an odd year costs $500 for 1 to 4 placement employees and $700 for 5 or more. Managers, owners, officers, directors, members and shareholders owning 10% or more must be fingerprinted. Bond premium is set by the surety based on the owners' credit and the agency's history.

Eligibility and Requirements for a New York Employment Agency Bond:

Bond of $5,000, or $10,000 for foreign domestic worker recruitment or modeling agencies, under General Business Law 177.
Two or more individual sureties or a duly authorized surety company.
City of New York named as Certificate Holder.
Replacement bond within ten days if the surety becomes insolvent.
An additional bond for each additional license under General Business Law 176.
Fingerprinting of managers, principals and shareholders owning 10% or more.

New York Employment Agency Bond FAQs:

Is my bond $5,000 or $10,000?

It is $10,000 if your agency recruits domestic or household employees from outside the United States or conducts a modeling agency. Every other employment agency posts $5,000.

We are a staffing agency. Do we need this license and bond?

DCWP does not require the license from a staffing agency that is the employer, contracts out its own employees and issues each of them a W-2. If you charge job seekers for placement, you are an employment agency and the bond applies.

When does the license expire?

DCWP employment agency licenses run two years and expire May 1 in even years. Keep the bond in force for the whole term.

What happens if my surety fails?

GBL 177 requires a new bond within ten days after the commissioner finds the surety insolvent or financially irresponsible. Missing that deadline puts the license at risk of revocation.