New York Employment Agency Bond
To operate an employment agency in New York, General Business Law §177 requires a $5,000 surety bond — $10,000 if you recruit domestic or household workers from outside the continental U.S., or run a modeling agency. But the amount isn't the part that trips people up. Where you operate decides who you file with: GBL §172 sends every agency inside the five boroughs to the NYC Department of Consumer and Worker Protection, and every agency elsewhere in the state to the New York State Department of Labor. Get the jurisdiction wrong and your filing goes to the wrong desk.
- Standard bond
- $5,000
- High-tier bond
- $10,000
- Statute
- GBL §§172, 177
- Bond-replacement window
- 10 days
- Who requires it: The New York City Department of Consumer and Worker Protection (DCWP), under General Business Law § 177, for an employment agency license.
- Amount: $5,000, payable to the City of New York.
- Timing: Same-day submission; most quotes within one business day.
One statute, two licensing authorities — and it comes down to your address
Most states run employment agency licensing through a single agency. New York splits it geographically. GBL §172 is explicit: an agency “conducted in the city of New York” licenses with the commissioner of consumer affairs of that city — now DCWP. An agency anywhere else in the state licenses with the commissioner of labor. §189 mirrors the split for enforcement, giving the Labor Commissioner authority “except in New York City,” where DCWP polices the statute instead. The $5,000 bond amount under §177 doesn't change based on jurisdiction — but the obligee, the filing office, and the inspection agency all do.
New York employment agency licensing: NYC vs. everywhere else in the state
Same statute, same $5,000 standard bond — different filing authority and obligee
| Inside New York City | Elsewhere in New York State | |
|---|---|---|
| Licensing authority | NYC Dept. of Consumer & Worker Protection (DCWP) | NYS Department of Labor |
| Statutory basis | GBL §172 — city commissioner of consumer affairs | GBL §172 — state commissioner of labor |
| Bond obligee | City of New York | People of the State of New York |
| Enforcement / inspections | DCWP, per GBL §189 | NYS DOL Commissioner, per GBL §189 |
| License term | Up to 2 years, expires May 1 of even years | Set by NYS DOL at issuance |
Agencies operating both inside and outside NYC generally need a license — and bond — filed with each authority.
New York General Business Law §§172, 177, 189 — nysenate.gov/legislation/laws/GBS
The bond amount most agencies never have to think about — until they do
§177 fixes two penal sums. Almost every general placement agency sits at the standard $5,000. Two specific business models jump to $10,000:
GBL §177 bond amounts by agency type
The higher tier applies to two named categories — everything else stays standard
General placement agency
$5,000
The statutory default — applies to the large majority of licensed agencies.
Overseas domestic-worker recruiter
$10,000
Agencies recruiting domestic or household employees from outside the continental United States.
Modeling / theatrical agency
$10,000
Modeling agencies by statute; theatrical agencies file the same amount under DCWP's theatrical self-certification.
New York General Business Law §177
Know your jurisdiction and agency type? We file the bond with DCWP or the NYS Labor Department, whichever applies.
Get Your QuoteWhat §177 actually requires
The bond runs to “the people of the state of New York or of the city of New York, as the case may be” and must be deposited before the license issues — not filed afterward as a formality. It is conditioned on compliance with Article 11 generally, on paying damages caused by “misstatement, misrepresentation, fraud or deceit, or any unlawful act or omission” of the licensee or its agents, and on paying any fines the commissioner imposes under §189.
Official New York Requirements
"Every person licensed to conduct an employment agency business... shall, before a license is issued to such person, deposit with the department a bond in the penal sum of five thousand dollars... Provided, however, that if the applicant will engage in the recruitment of domestic or household employees from outside the continental United States, or will conduct a modeling agency the bond shall be in the penal sum of ten thousand dollars."New York State Senate / New York General Business Law • New York General Business Law §177
If the surety later notifies the commissioner that it wants off the bond, §177 gives you a hard ten-day window from that notice to file a replacement — miss it, and revocation is at the commissioner's discretion. NYC-licensed agencies file bonds naming “the City of New York” as the certificate holder; agencies licensed through NYS DOL name the state.
The placement-fee rules this bond exists to enforce
A bond amount by itself doesn't tell you what conduct is actually regulated. GBL §185 sets a fee schedule by placement class, and a violation of that schedule is exactly the kind of “unlawful act” §177 makes claimable against the bond:
- Class C —General placements cap the gross fee at 10% of the worker's compensation, rising to 20% for orchestra and opera engagements.
- Class D —Private-duty nursing placements cap the fee at 5% of weekly wages for each of the first ten weeks of the assignment.
- Class B —Fees are capped as a percentage of the first full month's salary; where the employer is also charged, that fee can run up to 1.5 times what the applicant was charged.
- Always —Section 185 flatly bars charging any fee “for the registration of applicants for employees or employment” — a common trap for agencies that try to monetize sign-up before a placement happens.
Shorter contracts get a further discount: where the parties agree to a term under four months, the gross fee is capped at the lesser of 50% of the scheduled fee or 10% of wages actually received.
A ten-day clock, not a thirty-day grace period
Where many states give a lapsing bond 30 days of cancellation notice before it becomes a real problem, GBL §177 compresses that to ten days from the commissioner's notice to file a replacement bond — miss it and revocation is at the commissioner's discretion, not automatic, but live.
§189 backs that up with civil penalties: up to $1,000 for a first violation and up to $5,000 for a repeat violation within six years, on top of anything the surety pays out on a bond claim. Every licensed agency is also inspected at least once every eighteen months — premises, registers, contracts, and fee/refund records are all in scope. And if the commissioner does revoke a license, the statute bars that person — or an associate stepping in for them — from holding a new employment agency license or agency-manager permit for three years.
Premium math on the $5,000 DCWP bond
$5,000 or $10,000 is the penal sum on file with your obligee — not the premium you pay. On bonds this size, most sureties price against a minimum annual premium rather than a straight percentage of the penal sum.
Illustrative Premium Range on the $5,000 / $10,000 Tiers
Illustrative market-rate range, not a quote. Actual premium depends on the surety's minimum-premium policy, the $5,000 vs. $10,000 tier, and, where applicable, credit review. Request an exact quote for your agency.
See our surety bond cost guide for how premium is priced across bond types generally, and our license bond cost calculator to estimate a fixed-amount license bond like this one.
What a complete DCWP filing includes, beyond the bond
The bond is the piece a surety handles. Here is what NYC DCWP's employment agency application actually requires around it — agencies filing with NYS DOL outside the city should confirm the equivalent list with that office.
- 1
Secure a commercial address
DCWP prohibits home-based employment agency operations — you need a commercial location before you can apply.
- 2
Obtain the $5,000 (or $10,000) surety bond
Naming the City of New York as certificate holder for NYC filings, matching the business name and address on the license application exactly.
- 3
Submit sample employment contracts and self-certification
A sample contract for each placement class you operate, plus the theatrical or non-theatrical self-certification form that matches your business.
- 4
Complete fingerprinting through IdentoGO
Required as part of the DCWP background-check process for the license applicant.
- 5
Renew on the two-year cycle
DCWP licenses run up to two years and expire May 1 of even-numbered years — file your renewal at least 15 days before expiration and keep the bond continuous through the transition.
Other New York bonds & resources
New York employment agency bond questions
Do I file with DCWP or the state Labor Department?
It depends on where you operate, not on the size of your business. GBL §172 sends every agency inside the five boroughs of New York City to the NYC Department of Consumer and Worker Protection (DCWP) for licensing. An agency located anywhere else in New York State files instead with the New York State Department of Labor. §189 repeats the same split for enforcement — the Commissioner of Labor polices the statute statewide "except in New York City," where DCWP has jurisdiction. If your agency has offices in both, you generally need both licenses and, in most cases, a bond filed with each obligee.
Why would my bond be $10,000 instead of $5,000?
GBL §177 sets the standard penal sum at $5,000, but bumps it to $10,000 for two specific business models: agencies that "engage in the recruitment of domestic or household employees from outside the continental United States," and agencies that "conduct a modeling agency." Theatrical agencies file the same $10,000 bond under DCWP's theatrical self-certification. Every other general placement agency — the large majority — stays at $5,000.
What placement fees is this bond actually policing?
GBL §185's fee schedule, and the bond is what makes it enforceable. Class "C" placements cap the fee at 10% of the worker's compensation (20% for orchestra and opera engagements); Class "D" private-duty nursing placements cap it at 5% of weekly wages for the first ten weeks; Class "B" placements are capped as a percentage of the first month's pay, with employers allowed to be charged up to 1.5 times the applicant's fee. Section 185 also bars charging any fee at all "for the registration of applicants for employees or employment." Overcharge a placement fee or charge for bare registration, and the resulting claim runs against this bond — not just a customer complaint.
My surety notified me my bond is being cancelled — how much time do I have?
Very little. GBL §177 gives you until the deadline in the commissioner's notice to file a replacement — the statute is explicit that if a new bond isn't filed within ten days after that notice, the license is revoked at the commissioner's discretion. That is far tighter than the 30-day cancellation-notice window common on other states' employment agency bonds, so treat any cancellation notice from your surety as a same-week problem, not a renewal reminder.
Does a paid claim end my ability to run an agency in New York?
Not automatically, but a revocation does. Under GBL §189, a first violation draws a civil penalty up to $1,000 and a repeat violation within six years draws up to $5,000, on top of any bond claim paid to a harmed jobseeker. If the commissioner actually revokes your license, the statute bars you — or an associate operating in your place — from getting a new employment agency license or agency-manager permit for three years. That three-year bar is the real risk; the fine itself is usually the smaller cost.
Do I need a new bond every time I renew my DCWP license?
You need continuous, unbroken bond coverage for as long as the license is active, but that usually means renewing the same bond rather than buying a new one — DCWP licenses run on a two-year cycle, expiring May 1 of even-numbered years, and your bond should be renewed to match. Let coverage lapse between the old bond's expiration and a replacement being filed, and you're in the same 10-day cure window GBL §177 gives you after any cancellation notice.
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
General information, not legal advice. Bond amounts and licensing authority reflect New York General Business Law §§172, 177, 185, and 189. Confirm your current filing requirements — including which office has jurisdiction over your location — with NYC DCWP or the New York State Department of Labor, as applicable, before applying.
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