What is a California Employment Agency Bond?
California employment agency bonds cover businesses that offer employment counseling services and employment agencies. The bond is designed to protect the general public against unlawful and fraudulent actions by these organizations.
Who Needs a California Employment Agency Bond?
Both employment counseling service providers and employment agencies are required to register with the California Secretary of State before conducting business. The Secretary of State requires a $10,000 bond for employment counseling services and a $3,000 bond for employment agencies.
Why Do I Need a California Employment Agency Bond?
Both employment agencies and employment counseling service provider are required to abide by the provisions of Title 2.91, Part 4 of Division 3 of the Civil Code of the State of California. If a company fails to comply with these regulations and an individual or group suffers a financial loss. As a result, a claim can be made against the employment agency bond, up to the limits of the bond.
If a claim is made against the California employment agency bond, the employment agency or employment counseling service provider is responsible for reimbursing the surety for all damages and legal fees paid.
How Much Does a California Employment Agency Bond Cost?
To receive a $10,000 employment agency bond for job counseling services, the principal is subject to underwriting consideration, which means the premium will vary based on the business owner’s credit rating.
To receive a $3,000 employment agency bond for an agency, the bonds are most often offered for a flat-rate and without a credit check.
Get Started Today!
To receive your licensing to operate an employment agency or employment counseling service program, you must first purchase a California employment agency bond. Don’t delay your application.