The $5,000 Private Employment Agency Bond is required for Oregon employment agencies that charge a fee directly to the client for services provided. The bond is enforced by the Oregon Bureau of Labor and Industries (BOLI) Wage and Hour Division in order to protect the general welfare of Oregon’s public when dealing with employment agencies. A surety bond must be maintained throughout the entirety of the agency’s licensure.
If your agency is a limited liability company or corporation, only one bond is needed. Any other entity type requires the agency to have a $5,000 Private Employment Agency Bond for each acting owner. If your employment agency does not charge a fee to clients for services provided, a surety bond is not required by the BOLI.
With Jet, the lowest bond price is $10 monthly and $100 for one year annual term. You do have the option to pay for the bond in one-, two-, or three-year increments. The multi-year options allow you to get a discounted rate. Rates are based on a credit review of the owner and the rates below are for a person of good credit standing.
Other carriers work for commission and may charge broker fees and lofty down payments. By cutting out the middleman, Jet allows you to pay for the bond in the most effective way for your agency, while avoiding overpaying for brokers’ commissions.
The BOLI requires a sealed original Private Employment Agency Bond to be on file, with the signatures of both the agency and the surety company’s attorney-in-fact. Jet will take care of the filing process for you to the BOLI.
New applicants will have additional paperwork to turn in alongside the bond. All paperwork, including the surety bond, should be sent to:
Bureau of Labor and Industries
Wage and Hour Division, License Unit
1400 S.W. 5th Avenue, Rm. 306
Portland, OR 97201
If the agency is compliant with the BOLI, a violation can often be addressed without it turning into a bond claim. However, when a claim is filed on your bond Jet’s claims team will take action. The following process is Jet’s standard for Private Employment Agency Bond claims:
The employment agency is then responsible for their actions and is required to pay back Jet. Depending on the employment agency’s cooperation with the bond claims process, the BOLI has the right to revoke or suspend the agency’s active status.
BOLI’s reason for enforcing the $5,000 Private Employment Agency Bond is to protect the Oregon public’s welfare from dealings with employment agencies. The bond is reassurance for the people of Oregon that they will have recourse if dealings with an employment agency goes awry. The Private Employment Agency Bond must remain in full force and effect for the duration of the agency’s time administering services. By involving a surety company, the bond guarantees immediate financial recovery for the harmed party.
Basic information, such as agency name, entity type, address, etc., is needed to complete the online process which takes minutes. The information gathered helps Jet produce your bond in a quick, efficient manner and get it filed to the BOLI without any issues.
Each general partner of the employment agency is required to secure a surety bond. If the agency is a limited liability company (LLC) or corporation, the surety bond shall be in the name of that LLC or corporation.
With formal written notice, private employment agencies are able to request cancellation of the bond with Jet. Jet notifies the BOLI who has a provision leaving the bond on file for another 30 days. Jet will calculate a prorated refund for any time left on the bond, which will be returned to the employment agency. Jet’s monthly payment option allows the agency to easily cancel the bond at any time without having to wait to be refunded for unearned premium.
Other insurance carriers often have “minimum earned” conditions in the indemnity agreement which means at least a portion of the premium paid will never be returned to you, even if your bond is on file for a short duration. Those same companies may collect fees upon cancellation as well.
It doesn’t have to with Jet. The monthly payment option allows for a seamless process, as payments will continue to come out of your desired account. If you chose a one-, two-, or three-year option from the beginning, Jet will notify you a few months prior to the bond’s expiration date with a renewal quote.