Staffing Agency Guide

How to Start a Staffing Agency: State Licensing, IRS Worker Classification, Wage Bond Requirements, EEOC Compliance, and FCRA Background Check Rules (2026 Guide)

A staffing agency operates as the employer of record for workers it places with client companies — which means it carries full employer obligations: payroll taxes, workers' compensation, EEOC compliance, and wage-and-hour law. State licensing, worker classification rules, and joint employer liability create a complex regulatory stack. This guide covers every requirement in the right order.

Updated April 12, 2026 16 min read

Not legal advice. Requirements may change — always verify with your local government authority before applying. Last verified: .

The quick answer

  • 1State staffing agency licensing is required in several states — Illinois requires annual IDOL registration plus a $50,000 surety bond per location; New Jersey requires certification for manual labor placements; and several states require wage bonds before you can legally place workers.
  • 2Virtually all staffing agency placements must be W-2 employees — not 1099 contractors. The ABC test in California, Massachusetts, New Jersey, and Illinois makes independent contractor classification nearly impossible for workers placed through staffing agencies. Misclassification triggers massive retroactive tax and penalty liability.
  • 3EEOC compliance is a dual obligation — you cannot discriminate in your own hiring, and you cannot comply with discriminatory client requests. A written anti-discrimination policy for staffing orders and documented refusal of discriminatory client requests is mandatory.
  • 4FCRA background check compliance requires a standalone disclosure, written authorization, pre-adverse action notice with a copy of the report, and final adverse action notice — every time, for every placement. Ban-the-box laws in over 150 jurisdictions add additional restrictions on criminal history inquiry.
  • 5Pay transparency laws in CA, CO, NY, WA, IL, MA, and NJ require salary or wage range disclosure in all job postings — including postings for temporary placements. Disclose pay ranges in all postings to avoid multi-state compliance complexity.

1. How staffing agency regulation works

A staffing agency operates as an intermediary employer: it recruits workers, employs them as W-2 employees, and places them at client companies' worksites. The staffing agency is the employer of record — responsible for payroll tax withholding and remittance, workers' compensation coverage, EEOC compliance, wage-and-hour law compliance, Form I-9 employment verification, and employee benefits. The client company is the "host employer" — responsible for worksite safety, day-to-day work direction, and often for complying with joint employer obligations under wage-and-hour and labor law.

The regulatory stack for a staffing agency is broader than most service businesses because staffing agencies sit between two regulated relationships simultaneously: the employer-employee relationship (triggering employment law obligations) and the business-to-business relationship with client companies (triggering contract law and joint employer liability considerations). Both relationships carry significant compliance risk — and both must be managed from day one.

The full compliance package for a staffing agency: state staffing agency license or registration (where required), federal EIN and state employer tax registration, workers' compensation insurance for all placed workers, EEOC anti-discrimination compliance program, FCRA-compliant background check procedures, Form I-9 and optional E-Verify enrollment, state payroll tax registration, wage bond (where required), FLSA and state wage-and-hour compliance, pay transparency law compliance for job postings, OSHA joint employer safety training obligations, and written staffing agreements allocating liability with client companies.

2. State staffing agency licensing: Illinois, New Jersey, New York, and California

Several states impose specific licensing or registration requirements on staffing agencies, beyond general business licensing. These requirements vary by state and sometimes by the type of placements (manual labor, professional, farm labor, etc.).

Illinois: Day and Temporary Labor Services Act

Authority: 820 ILCS 175 Bond: $50,000 per location

Illinois imposes the most comprehensive staffing agency regulatory program in the country under the Day and Temporary Labor Services Act (DTLSA), administered by the Illinois Department of Labor (IDOL). Registration requirements: annual registration with IDOL at $500 per location; a $50,000 surety bond per location payable to the State of Illinois; display of registration certificate at each agency location; and compliance with detailed worker protection requirements. DTLSA worker protections include: written work notices provided to each day laborer before each placement (describing the name and address of the third-party client, the nature of the work, the wage rate, and transportation arrangements); payment at least weekly; prohibition on charging workers for transportation, meals, equipment, or other items that reduce their pay below minimum wage; and since 2023 amendments (HB 2862, effective January 2024): equal pay after 90 days at a client site (temporary workers must receive compensation equal to the lowest-paid comparable directly hired employee at the client doing the same work), and client companies must offer a temp worker a direct hire position after 720 hours at the client. Violations carry penalties of $500-$7,500 per violation.

New Jersey, New York, and California

NJ: Certificate of Registration required for manual labor placements CA: Joint employer liability under AB 2257

New Jersey requires staffing agencies placing workers in temporary manual labor positions to obtain a Certificate of Registration from the NJ Department of Labor under the Temporary Help Service Firms Act (N.J.S.A. 34:8-67). The Certificate requires a $50,000 surety bond, proof of workers' compensation insurance, and compliance with NJ wage payment requirements. New York does not require a separate staffing agency license but imposes comprehensive disclosure obligations under New York Labor Law sections 195-198: before placement, temp agencies must provide workers with written disclosure of the terms of employment including pay rate, pay period, deductions, overtime policy, and the name and address of the client company. California requires staffing agencies to register with the EDD as an employer and comply with AB 2257 (the successor to AB 5), which establishes an ABC test for worker classification with very limited exceptions for true independent contractors. California also imposes joint employer liability on client companies for wage theft by their staffing agencies — Labor Code § 2810.3 makes the client employer jointly and severally liable for all wages owed to workers placed by a staffing agency, including back wages and civil penalties.

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3. IRS worker classification: W-2 employees vs. 1099 contractors

Worker classification is the foundational compliance issue for staffing agencies. Getting it wrong exposes you to multi-year back tax assessments, state unemployment tax liability, workers' compensation premium fraud liability, and EEOC exposure.

The IRS common law test and the ABC test

IRS authority: Revenue Ruling 87-41; IRC § 3401(d) ABC test: California Lab. Code § 2775; IL 820 ILCS 185/10

The IRS applies a three-category test to determine whether a worker is a common law employee (subject to payroll taxes, withholding, and W-2 reporting) or an independent contractor (subject to 1099 reporting, no withholding). The three categories: (1) Behavioral control — does the company control or have the right to control how the worker performs their work? (2) Financial control — does the company control the business aspects of the worker's job, including how the worker is paid, whether expenses are reimbursed, and who provides tools? (3) Type of relationship — are there written contracts describing the relationship as employment or contracting? Are employee-type benefits provided? Is the relationship permanent? For staffing agency placements, factors (1) and (2) almost always indicate employee status — the agency controls pay, provides the work assignment, and the worker is not typically running an independent business during the placement period. The ABC test applied in California, Massachusetts, New Jersey, Illinois, and several other states is even stricter: all three prongs must be satisfied for independent contractor status, and prong B (the work is outside the usual course of the staffing agency's business) is essentially impossible to satisfy since providing workers IS the agency's business.

Payroll tax registration and obligations

Federal: FUTA (6% on first $7,000 per worker); FICA (7.65% employer share) State: Unemployment tax and state income tax withholding

As the employer of record for all placed workers, your staffing agency must: register with the IRS for an EIN; register with each state where workers are placed for state unemployment insurance (SUI) tax and state income tax withholding; withhold and remit federal and state income tax, FICA (Social Security 6.2% and Medicare 1.45%, employee share), and remit the matching employer share; pay FUTA (federal unemployment tax) at 6% on the first $7,000 per worker per year, reduced to 0.6% after the FUTA credit for states with current SUI obligations; and file quarterly Form 941 (federal payroll tax return) and annual Form 940 (FUTA return). State SUI rates for staffing agencies are typically higher than other industries due to the transient nature of temp work — new employer rates in most states range from 1-4% on the first $10,000-$50,000 of wages per worker. Use a payroll service (ADP, Paychex, Gusto) from day one — manual payroll administration for multi-state placements is error-prone and the consequences of payroll tax non-compliance include personal liability of the responsible person (owner or officer) under IRC § 6672 trust fund penalty.

4. EEOC compliance, joint employer liability, and workers' compensation

Staffing agencies face EEOC and workplace liability across both their internal workforce and their placement operations. Both must be actively managed with documented policies and training.

EEOC: anti-discrimination in placement operations

Title VII coverage: 15+ employees ADEA coverage: 20+ employees

The EEOC applies Title VII, ADA, and ADEA to staffing agencies in two distinct ways. First, the agency is a covered employer for its own internal staff (recruiters, operations staff). Standard anti-discrimination rules apply. Second, and more uniquely, the EEOC has held that staffing agencies violate Title VII when they comply with discriminatory client requests — for example, a client requesting "no foreign accents," "younger workers," workers of a specific race, or workers without disabilities. EEOC Enforcement Guidance on Contingent Workers establishes that both the staffing agency and the client can be jointly liable as the worker's employer. Required compliance elements: written anti-discrimination policy for staffing orders; recruiter training on recognizing and refusing discriminatory requests; a documented process for refusing and documenting discriminatory client requests; and EEO-1 reporting (required for agencies with 100+ employees, or 50+ employees if a federal contractor). Retaliation against workers who complain about discrimination to the EEOC or internally is separately prohibited under Title VII section 704(a) and is one of the most frequently cited claims in EEOC charges.

Workers' compensation for temporary workers

Coverage: Required for all W-2 employees in 49 states NCCI: Staffing agencies classified by type of placement work

Workers' compensation insurance is one of the largest cost drivers for staffing agencies. As the employer of record, your agency must carry workers' comp for every placed worker — and the premium classification code for each worker is determined by the work they actually perform at the client site, not the general category of staffing. A worker placed in a warehouse doing forklift operations is classified under the warehouse/forklift classification code (high rate), not a general administrative code (low rate). Staffing agencies pay workers' comp premiums based on payroll in each classification code, and the classification split among placements directly determines total premium. Key management levers: (1) Use payroll classification codes accurately — misclassifying workers into lower-rate codes to reduce premiums is insurance fraud. (2) Negotiate loss-sensitive programs (retros, captive arrangements) once you have sufficient payroll to achieve favorable rates. (3) Establish a robust return-to-work program — modified duty placement with clients for injured workers reduces claim duration and long-term costs. (4) Use a PEO (Professional Employer Organization) during the startup phase if access to competitive workers' comp rates is difficult for a new business without claims history.

5. FCRA background checks, E-Verify, and Form I-9

Employment screening compliance is non-negotiable for staffing agencies. Errors in the FCRA adverse action process are the most frequent source of employment class action litigation against staffing companies.

FCRA adverse action procedure

Authority: 15 U.S.C. § 1681b(b)(3) Statutory damages: $100-$1,000 per willful violation

Before obtaining any background check from a third-party CRA, provide the applicant a standalone written FCRA disclosure and obtain written authorization. This is a separate step from the employment application. If the report contains information that may cause you to deny or delay a placement, the FCRA pre-adverse action procedure requires: (1) Send the applicant a copy of the full background check report; (2) Send the FTC's Summary of Rights Under the FCRA; (3) Allow a reasonable waiting period — typically 5 business days — for the applicant to dispute inaccuracies with the CRA. After the waiting period, if you proceed with the adverse decision, send a final adverse action notice identifying the CRA that provided the report and noting that the CRA did not make the adverse decision. State ban-the-box laws in California (AB 1008 — employers with 5+ employees must do individualized assessment before denying based on criminal history), New York City (Fair Chance Act), and many localities impose additional procedures including mandatory individualized assessment of the criminal record's relevance to the position. Never use automated rejection based on criminal history checkboxes without completing the individualized assessment required in applicable jurisdictions.

Form I-9 and E-Verify for staffing agencies

I-9 deadline: Complete within 3 days of placement start E-Verify: Required in 9+ states for private employers

Staffing agencies must complete Form I-9 for every worker hired — including temporary workers placed at client sites. The I-9 must be completed by the employee on Day 1 (Section 1) and by the employer within 3 business days of the employee's first day of work (Section 2). In staffing arrangements, the staffing agency — as the employer of record — is responsible for completing and retaining the I-9. Retention: retain I-9s for 3 years from the date of hire, or 1 year after employment ends, whichever is later. Store I-9s separately from personnel files to facilitate USCIS or ICE audits. USCIS Form I-9 audits (Notices of Inspection) have significantly increased — staffing agencies are a primary audit target because they employ large numbers of workers across multiple sites. E-Verify enrollment is free at e-verify.gov and is recommended for staffing agencies doing business with federal contractors. Eight states (AL, AZ, GA, MS, NC, SC, TN, UT) require private employers to use E-Verify for new hires. Florida requires E-Verify for private employers with 25+ employees since July 2023.

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6. Pay transparency laws and state payroll tax registration

Two compliance requirements that staffing agencies often underinvest in until they expand: pay transparency laws governing job posting disclosures, and multi-state payroll tax registration for agencies placing workers across state lines.

Pay transparency laws by state (2026)

States with pay range disclosure requirements: CA, CO, IL, MA, NJ, NY, WA

As of 2026, pay transparency laws requiring wage and salary range disclosure in job postings are in effect in California (SB 1162 — employers with 15+ employees), Colorado (EPEWA — all employers), Illinois (HR 3429 — employers with 15+ employees, effective January 2025), Massachusetts (effective October 2025 — employers with 25+ employees), New Jersey (effective June 2025 — employers with 10+ employees), New York State (effective September 2023 — all employers), and Washington State (effective January 2023 — employers with 15+ employees). For staffing agencies, job postings include postings for temporary placements — you must disclose the pay rate or pay range offered for the specific placement in the applicable states. Penalties range from $100 per violation in Colorado (first offense) to $10,000 per violation in California, with class action exposure when patterns of non-disclosure affect multiple applicants. The practical approach for multi-state staffing agencies: include pay rates in all job postings regardless of state, eliminating the complexity of tracking which postings are subject to which state law.

Multi-state payroll tax registration

Trigger: Placing a worker in a new state for 1+ days creates nexus

If your staffing agency places workers in multiple states, you have employer tax nexus in each state where workers perform services. Each state requires: registration as an employer for state income tax withholding; registration with the state unemployment agency for SUI contributions; and compliance with state wage payment laws (pay periods, pay stubs, final pay timing). Remote and hybrid work arrangements have complicated this further — a worker based in New Jersey but working for a New York City client may trigger employer obligations in both states. Use a multi-state payroll provider (ADP TotalSource, Paychex, Rippling) that automatically manages state registrations, rate changes, and filing deadlines across all states where you have workers. Failure to register in a state where workers are performing services is a payroll tax violation that accumulates interest and penalties monthly.

7. Startup cost breakdown

Here is a realistic cost picture for launching a staffing agency in a single market, placing 20-50 temporary workers per week across 5-10 client companies:

Item Low High
State staffing agency registration + surety bond premium$500$51,500
Workers' compensation insurance (first year, startup rate)$5,000$25,000
General liability and professional liability insurance$2,000$8,000
Payroll software (ADP, Paychex, or Gusto — annual)$2,400$12,000
Applicant Tracking System — annual$1,200$8,400
FCRA-compliant background check vendor (annual volume pricing)$1,000$5,000
Employment attorney review of templates and policies$2,000$10,000
Office space (first 3 months)$3,000$15,000
LLC or corporation formation and business licenses$500$2,000
Payroll float (first 30-45 days before client invoices are paid)$20,000$100,000
Marketing and website$1,000$8,000
Total$38,600$244,900

The biggest startup risk for a staffing agency is payroll float — you pay workers weekly, but clients typically pay invoices on net 30-45 day terms. You need sufficient working capital to fund 4-6 weeks of payroll before your first client payments arrive. Invoice factoring (selling your receivables to a factoring company at a 2-4% discount) is a common solution for new staffing agencies without access to bank lines of credit.

Frequently asked questions

What state licenses does a staffing agency need to operate?

State staffing agency licensing requirements vary significantly. Illinois imposes the most comprehensive requirements under the Day and Temporary Labor Services Act (820 ILCS 175), which requires all day and temporary labor service agencies to register annually with the Illinois Department of Labor (IDOL). Registration requires: a completed application; a $500 annual fee (per location); a $50,000 surety bond payable to the state; posting a notice at the staffing agency's premises describing workers' rights; providing day laborers with detailed written work assignments before each placement; and specific pay period requirements (temporary workers must be paid at least weekly). Illinois also enacted sweeping amendments in 2023 (HB 2862) that require equal pay for temp workers after 90 days in a client's workplace, require clients to offer temp workers permanent positions after 720 hours, and impose liability on client companies for violations. New Jersey requires staffing agencies that place workers in manual labor positions to obtain a Certificate of Registration from the NJ Department of Labor and Workforce Development under the Temporary Help Service Firms Act (N.J.S.A. 34:8-67). New York staffing agencies are regulated under New York Labor Law Article 19 — no separate registration is required but extensive disclosure obligations apply regarding job terms, pay, and deductions before a worker accepts placement. California does not require a specific staffing agency license but imposes strict joint employer liability rules under AB 5 (now AB 2257) and requires registration as an employer with the EDD. Check your state's department of labor for staffing-specific requirements before launch.

Should staffing agency workers be classified as W-2 employees or 1099 contractors?

In almost all cases, workers placed by a staffing agency should be classified as W-2 employees, not 1099 independent contractors. The IRS applies a common law test with 20 factors examining behavioral control, financial control, and type of relationship to determine worker classification. For staffing agency placements, the staffing agency almost always controls how the worker is paid, the work relationship is ongoing, the staffing agency sets work rules and handles HR functions, and the worker is not in business for themselves independently — all factors pointing to employee classification. Many states apply the "ABC test" (most protective version enacted in California under AB 5, codified at California Labor Code § 2775): a worker is an employee unless (A) the company does not control or direct the work, (B) the work is outside the usual course of the company's business, and (C) the worker is customarily engaged in an independently established trade or occupation. Staffing agencies almost always fail parts A and C of the ABC test — the agency exists to provide labor services, and the workers placed are not running independent businesses. Misclassifying W-2 employees as 1099 contractors triggers massive liability: back payroll taxes (employer's share of FICA, FUTA, state unemployment), back workers' compensation premiums, denial of employment benefits, and exposure to DOL and state labor department penalties. IRS Section 3509 imposes additional taxes on employers who misclassify employees. Use W-2 for all placements unless you have a written legal opinion confirming true independent contractor status.

What is a staffing agency wage bond and how much is required?

A wage bond (also called a payroll bond or labor contractor bond) is a surety bond that protects workers' wages in the event a staffing agency fails to pay wages owed. Several states require staffing agencies to post wage bonds as a condition of operating. Illinois requires a $50,000 surety bond per location under the Day and Temporary Labor Services Act. California requires farm labor contractors to post a $25,000 bond under Labor Code § 1692, and bill SB 620 expanded bond requirements for temporary services employers in certain sectors. New Jersey requires a $50,000 surety bond for agencies placing workers in manual labor positions. Florida requires labor pool service agencies to obtain a $10,000 bond. Washington State requires agricultural staffing agencies to post a bond based on the number of workers placed. Bond premiums (the cost to you) are typically 1-3% of the bond face amount annually, depending on your credit rating — a $50,000 bond costs $500-$1,500 per year. Bond claims are made by workers or the state against the bond when the agency fails to pay wages. After a bond claim is paid by the surety, the surety seeks reimbursement from the agency — a wage bond is not insurance, it is a guarantee backed by your credit. Agencies with poor credit may be required to post 10-15% of the bond face amount as collateral. Maintain adequate payroll reserves to ensure wages are paid on schedule — the bond is a last resort, not a substitute for payroll liquidity.

What EEOC requirements apply to a staffing agency?

Staffing agencies are subject to all major federal employment discrimination laws enforced by the Equal Employment Opportunity Commission (EEOC): Title VII of the Civil Rights Act of 1964 (prohibiting discrimination based on race, color, religion, sex, and national origin), the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA, protecting workers 40 and older), the Equal Pay Act, the Pregnancy Discrimination Act, and the Genetic Information Nondiscrimination Act (GINA). For staffing agencies, EEOC compliance involves two distinct relationships: (1) Your relationship with your own staff (recruiters, managers) — standard employer discrimination rules apply. (2) Your placement process — refusing to place workers with client companies based on protected characteristics is a Title VII violation, as is complying with discriminatory client preferences (e.g., a client requesting workers of a specific race, age, or gender). The EEOC has specifically stated that staffing agencies that comply with discriminatory client requests are liable under Title VII. This means: you must have a documented policy that explicitly prohibits accepting discriminatory staffing orders; you must train your recruiters on recognizing and refusing discriminatory requests; and if a client attempts to exert discriminatory preferences, you must refuse and document the refusal. Retaliation against workers who complain about discrimination is separately prohibited. EEOC charges filed against staffing agencies have increased significantly since 2015. Agencies with 15 or more employees are covered by Title VII and ADA; ADEA coverage begins at 20 employees.

Is E-Verify required for staffing agencies?

E-Verify is a federal program administered by USCIS that verifies employment authorization by comparing Form I-9 information to DHS and SSA databases. Federal law does not currently require most private employers to use E-Verify — it is mandatory only for federal contractors subject to the Federal Acquisition Regulation (FAR) E-Verify clause (for employees working on federal contracts) and in states that have enacted mandatory E-Verify laws. As of 2026, the following states mandate E-Verify for all employers or for employers above a threshold: Alabama, Arizona, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Utah (all private employers); Florida (private employers with 25+ employees since July 2023 under SB 1718). Several additional states require E-Verify for public employers and contractors. Federal contractors must enroll in E-Verify and verify all new hires and existing employees assigned to federal contracts within 30 days of the contract award date. Even where not legally required, staffing agencies should consider voluntary E-Verify enrollment to protect against I-9 audit exposure — USCIS and ICE conduct Form I-9 audits of employers in industries with high rates of unauthorized worker employment, which includes staffing and labor contractors. Staffing agencies must still complete Form I-9 for every worker placed, regardless of E-Verify participation. E-Verify enrollment is free at e-verify.gov.

What is joint employer liability and how does it affect a staffing agency?

Joint employer liability arises when two or more entities are each considered an employer of the same worker for purposes of a specific employment law. For staffing agencies, the two entities are the staffing agency and the client company (the host employer). Under the Fair Labor Standards Act (FLSA), both the staffing agency and the client company can be jointly liable for wage and hour violations — if the client company directs work schedules, supervises day-to-day work, and controls working conditions, both entities are liable for unpaid overtime, minimum wage violations, and meal and rest break violations. Under OSHA, the client company as the controlling employer is responsible for worksite safety conditions, while the staffing agency as the sending employer is responsible for providing general safety training and ensuring the client provides a safe worksite. Key DOL and NLRB guidance on joint employment has been revised multiple times. Protective measures for staffing agencies: (1) Contractually allocate compliance responsibilities to the client for on-site supervision, safety, and scheduling. (2) Specify in your staffing agreement that the client assumes responsibility for OSHA compliance at the worksite. (3) Maintain independent payroll records. (4) Do not abdicate wage-setting decisions entirely to the client. California Labor Code § 2810.3 makes client employers jointly and severally liable for wages owed by their staffing agencies — a significant risk for California clients that creates leverage in your contract negotiations.

What FCRA requirements apply to background checks in a staffing agency?

The Fair Credit Reporting Act (FCRA, 15 U.S.C. § 1681 et seq.) governs the use of consumer reports — including criminal background checks, credit checks, and employment verification reports obtained from third-party consumer reporting agencies (CRAs) — in employment decisions. Staffing agencies that use third-party background check vendors must comply with a specific FCRA procedure for every placement: (1) Disclosure: Before obtaining a background check, provide the applicant a standalone written disclosure that a background check will be obtained for employment purposes. The disclosure must be a standalone document — it cannot be embedded in the employment application. (2) Written authorization: Obtain written authorization from the applicant to obtain the report. (3) Pre-adverse action notice: If a background check result may cause you to decline a placement, provide the applicant a copy of the report, a copy of the FTC's Summary of Your Rights Under the FCRA (available at ftc.gov), and a reasonable time to dispute the accuracy of the report (typically 5 business days minimum). (4) Final adverse action notice: If you proceed with the adverse decision, provide a final adverse action notice with the name and contact information of the CRA that produced the report. Many states impose additional ban-the-box restrictions that prohibit using criminal history during the initial application stage — California (AB 1008), New York City (Fair Chance Act), Chicago, Philadelphia, and over 150 other jurisdictions have enacted some form of ban-the-box law. FCRA violations carry statutory damages of $100-$1,000 per willful violation, plus actual damages and attorney's fees in class actions.

What state pay transparency laws apply to staffing agencies?

Pay transparency laws require employers (including staffing agencies) to disclose salary ranges in job postings and sometimes upon request to existing employees. As of 2026, the following states and localities require pay range disclosure in job postings: Colorado (EPEWA, effective 2021 — salary range plus benefits in all job postings); California (SB 1162, effective January 2023 — salary range disclosure in postings for companies with 15+ employees, plus pay data reporting for companies with 100+ employees); New York State (effective September 2023 — salary and wage range for any job, promotion, or transfer in all postings); Washington State (effective January 2023 — wage and salary range, benefits, and other compensation in all postings); Illinois (effective January 2025 — pay range disclosure in job postings); Massachusetts (effective October 2025); New Jersey (effective June 2025). For staffing agencies specifically: job postings for temporary placements must include the pay rate or pay range for the placement in the applicable states. Failing to disclose pay ranges in covered states carries civil penalties of $100-$10,000 per violation in Colorado and up to $10,000 per violation in California. As a national or multi-state staffing agency, the safest approach is to disclose pay ranges in all job postings regardless of state, eliminating the compliance burden of tracking which postings go to which state applicants. Pay transparency is increasingly expected by job seekers and reduces time-to-fill rates.

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