Bond Overview
- Purpose: To guarantee compliance with local employment laws and protect clients
- Who Needs It: All private employment and staffing agencies in Illinois
- Regulating Body: The Illinois Department of Labor
- Bond Amount: $5,000
- Premium Price: $100 for one year
What Is an Illinois Private Employment Agency Bond?
Illinois private employment agency bonds hold companies financially responsible for upholding the Private Employment Agency Act.
Specifically, this bond ensures that employment agencies do not knowingly send individuals to employers who treat employees unethically. It also enforces accurate record-keeping and billing.
How Much Do Private Employment Agency Bonds Cost?
The $5,000 Illinois private employment agency bond costs $100 for one year of coverage. You can also select a two-year term for $175 or a three-year term for $250. Click below to get your bond in minutes.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Illinois Private Employment Agency Bond Work?
When you file this bond, you enter a legally-binding contract with the surety provider and the Illinois DOL. In the contract terms, you are the bond principal.
| Bond Party | Description |
|---|---|
| 1) Principal | The employment agency owner(s) filing the bond |
| 2) Obligee | The Illinois Department of Labor |
| 3) Surety | The issuing surety provider |
As principal, you promise the obligee that you will uphold the bond terms. If not, the bond can be used to pay out claims up to $5,000.
How Do I Get a Private Employment Agency Bond in Illinois?
With SuretyBonds.com, you can get your bond in minutes:
- Select your bond term.
- Enter your information.
- Checkout instantly online.
- Receive your bond documentation via email.
Once you receive your bond, file it with the DOL as instructed to become officially bonded.
How Do I Renew My Bond?
These bonds expire every year, unless you select a multi-year term. We’ll send periodic email and text reminders starting 90 days before the expiration date.
Just follow the instructions in the renewal reminders and pay the renewal invoice. File your continuation certificate with the Department of Labor. This is proof that your original employment agency bond form is still active.
How to Open an Employment Agency in Illinois
To start a staffing agency, start by familiarizing yourself with the Illinois Private Employment Agencies Act. Then, you can apply with the Department of Labor by submitting the following:
- Application form
- $5,000 surety bond
- Payment for the application fee (varies based on number of counselors)
- Background information form for all owners/partners
- List of estimate operating expenses for first 3 months
- Copies of all sample forms to be used in the business
- Copy of your refund policy
- 2 signed, notarized affidavits from professionals who have known you for at least two years and can attest that to your moral character
Do I Need an Employment Counselor License?
There is a separate license application (no bond requirement) for Illinois employment agency counselors. Sole owners or partners of the private agency who act as counselors do not need a separate license. However, if the agency is owned by a corporation, any officer acting as a counselor needs a license.
You can contact the DOL Private Employment Agencies division for more information:
- Phone: (312) 793-2805
- Email: [email protected]
