State of California California Department of Consumer Affairs

Employment Agencies/Employment Counseling Services/Job Listing Services

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Personnel service businesses are not regulated by any state agency but are required to have a business license from city or county government and a surety bond on file with the Secretary of State.

Employment agencies, employment counseling services, and job listing services are required to provide the contracting consumer with a written contract. Employment agencies have no statutory provisions regarding cancellation rights. Contractual requirements for employment counseling services allow a consumer to cancel the contract within three business days from the date the contract was entered into by a written notice of cancellation to the business. The same three-day right to cancel applies to job listing services.

Employment Agency:

Is a company offering, as a paid-for service, to procure employment for a job seeker.

Job Listing/Computer Matching:

Is a company that offers to provide as a paid-for service, lists of employers and job penings, or matches job seekers with employment opportunities.

Employment Counseling:

Is a person offering one or more of the following services for a fee: career counseling, vocational guidance and aptitude testing or career management. Employment counselors providing services strictly on an hourly basis, with no other fees assessed, are not subject to provisions of the Civil Code.

Employment Services Agencies

Are required to have a local city/county business license and a surety bond filed with the Secretary of State.

The Secretary of State Special Filings provides surety bond application forms. Any further information about surety bonds must be obtained from an issuing surety company.</p>

Secretary of State Special Filings
1500 11th Street, 2nd Floor
Sacramento, CA 95814
(916) 653-3984

Mailing Address:
PO BOX 944225
Sacramento, CA 94244-2250

When a business or licensee is required to file a bond with the California Secretary of State's office, the licensee purchases a bond from an insurance company which issues (sells) surety bonds and then files it with the office of the Secretary of State. The Secretary of State's office does not handle complaints or enforce any rulings; it serves only as a "record keeper" for the filing of the bond. However, should a consumer wish to file a claim against an individual who has purchased bond insurance, the name of the surety company may be obtained from this office. The consumer then may file in Small Claims Court to collect against the "bonded" individual operating the business.

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