Arizona Employment Agency Bond

How much does an employment agency bond cost in Arizona?

Update: Pursuant to AZ Rev Stat § 23-527, employment agencies in Arizona are no longer subject to the $5,000 surety bond licensing requirement.

Why do I need this bond?

Arizona employment agencies must provide the Labor Department with a $5,000 surety bond to comply with the provisions established by Arizona Revised Statutes 23-521 and Arizona Administrative Rules R20-5-301. The bond ensures that no employment agency or agent commits fraud, misrepresentations, makes false statements, or commits other unauthorized acts. In the event that a claim is made against the bond, the surety will pay out up to the full $5,000 with the expectation that the principal will reimburse them for any money paid out to settle the claim.

What’s the fine print?

Employment agency bonds are issued for 12-month terms and must be renewed annually. The bond may be canceled if either the surety provides notice to the Industrial Commission of Arizona or if the state of Arizona, on behalf of the Industrial Commission, cancels the bond. In either scenario, 30 day’s written notice must be provided by the entity canceling the bond.

How to become an employment agency in Arizona

To become an employment agency in Arizona, the following requirements must be met by the applicant:

• Submit to background check by State Department of Labor
• Complete application and supplemental application
• Provide business and personal financial statements
• Pass written examination
• Pay initial fee as well as annual fee each year the license is renewed

Additional Resources

Industrial Commission of Arizona Home

Arizona Administrative Rules R20-5-301

Arizona Revised Statutes 23-521