What is a Pennsylvania Employment Agency Bond?

Pennsylvania Employment Agency BondTo obtain a license to conduct, keep, and carry on the business of a private employment agent for profit, employment agencies need to file a surety bond as required by the Pennsylvania Department of Labor and Industry.

The Employment Agency Bond provides assurance that the employment agency will fulfill its legal obligations in accordance with the state laws and statutes. A validated violation of the applicable statutes committed by the employment agency will be a cause for a bond claim.

The bond ensures payment of all financial damages caused to any person due to misstatement, misrepresentation, fraud or deceit, or any unlawful acts committed by the employment agency’s agents or employees in carrying on the business.

Employment agencies may refer to any person, association, partnership, or corporation that offers secure employment for any person who will pay for its services. It also is authorized to collect dues, membership, or registration fees, where the main purpose of the person paying these is to secure employment.

Under the Pennsylvania Employment Agency Law Act, if the same employment agency has two or more licenses, they must file a separate bond for each license as required by section 9 of the Act (43 P. S. §543).


What are the bond conditions?

  • The Surety must be accepted and authorized to conduct business in the Commonwealth of Pennsylvania.
  • The Principal (licensed employment agency) must follow the provisions of the Pennsylvania Employment Agency Law Act, as well as the rules and regulations of the Pennsylvania Department of Labor and Industry.
  • The Principal must faithfully observe and comply with the provisions of the Act of the General Assembly, No. 261, approved July 31, 194, entitled “An act defining, regulating and providing for the licensing and registration of employment agents and their representatives, including private employment agents, theatrical employment agencies, and nurses’ registries, providing penalties and repealing existing laws.”
  • If the Principal complies with all provisions, rules, and regulations, then the obligation will be considered null and void. Otherwise, it will remain in full force and effect.
  • The aggregate liability of the Surety will not exceed the bond amount.


What is the bond amount?

The bond amount is $3,000.

Your bond premium will depend on your credit score. Those who have an excellent credit score will be able to pay a low bond premium! Bond premium starts at $100.


How can I obtain an Employment Agency Bond?

STEP 1: Apply for the bond

You need to submit a bond application to us. If you’re ready to apply now, you may do so by getting an accurate quote HERE!

STEP 2: Underwriting

We will ask you for a couple of relevant information needed for the bond. Typically, the surety underwriter will only look at your credit score to properly evaluate your bonding capacity. For this bond, a review of your credit score will be required.

However, with larger bond amounts, underwriters will probably look into your financial history and business performance.

Do not let the underwriting process intimidate you! We make it a smooth and easy process for you!

STEP 3: Bond execution

Once the underwriter completes the underwriting process, we will immediately issue the bond and send it to you!

Contact us now!

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