Private Employment Licensing

Private Employment Agency (PEA)

A Private Employment Agency (PEA) is a business that, for a fee, commission, or charge:

1. Furnishes information to a person seeking employment enabling or tending to enable the person seeking employment to secure employment; 

 2. Furnishes information to a person seeking employees enabling or tending to enable the person seeking employees to obtain employees; or 

3. Maintains a record of persons seeking employment or employees.

 It does not include a recognized labor union OR an employer who procures his/her own employees, or an employee who procures other employees for his/her employer only. 

NRS 611.030(1)-(3) requires a person operating a PEA to obtain a PEA license BEFORE operating the business, such as soliciting employers and/or employees. Operating a PEA without a valid license issued by the Office of the Labor Commissioner can result in fines, penalties, and/or misdemeanor charges being filed with the Office of the Attorney General or the local district attorney in that county.

Does my company need to be licensed by the Office of the Labor Commissioner as a PEA?

 1. Is your office physically located in the State of Nevada?

NRS 611.040  Application for license.

     1.  A written application for a license to conduct a private employment agency in this State must be made to the Labor Commissioner and must contain:

      (a) The name and address of the applicant;

      (b) The street and number of the building or place where the business is to be conducted; and

      (c) The business or occupation in which the applicant was engaged for at least 2 years immediately preceding the date of the application.

      2.  The application must be accompanied by:

      (a) Affidavits of at least two reputable residents of this State stating that the applicant is a person of good moral character; and

      (b) Proof that the applicant is a resident of this State.

2. Will you be recruiting employees whom you will pay directly, but that will go to work at other business locations?

 3. Will you be charging a fee to either the employer for providing him/her employees OR a fee to the employee for finding him/her work? (Note, the rate percentage is shown in NAC 611.090). 

4. Will the workers be "your" employees and will your business issue W2s to its workers at the end of the year?

 If they will be independent contractors your business will not need to be licensed as a PEA through our Office; however, please read NRS 608.0155 as to determining Independent Contractors vs. Employees as well as the Independent Contractor – Information Sheet available on our websiteDocument is compliant. Select if any issues - Independent Contractor – Information Sheet).

 5. Is the responsible party for the business a resident of Nevada? If not, then you will need to have another party also file as an applicant for the PEA license with you. See NRS 611.040(2)(b) and NRS 611.045(1)(c). 

a. NRS 611.120 No license shall protect any other than the person to whom it is issued, nor any places other than those designated on the license.

All business locations for any one business must also be licensed.

6. Each applicant must fill out an application form; submit a copy of his/her current, valid driver’s license, and each get two Nevada residents to sign affidavits attesting to his/her good moral character and that the applicant has not been convicted of a felony relating to the conduct of a PEA or any offense involving moral character and that the applicant has not been convicted of a felony relating to the conduct of a PEA or any offense involving moral turpitude. 

    Professional Employer Organization (PEO)

    “Professional Employer Organization” means a company which, pursuant to a written or oral agreement intended by the parties to create an ongoing relationship, places any of the regular, full-time employees of a client company on its payroll and, for a fee, leases them to the client company.

     
    NRS 616B.670  Definitions.  As used in NRS 616B.670 to 616B.697, inclusive, unless the context otherwise requires:

    1.  “Applicant” means a person seeking a certificate of registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate an employee leasing company.

    2.  “Client company” means a company which leases employees, for a fee, from an employee leasing company pursuant to a written or oral agreement.

    3.  “Employee leasing company” means a company which, pursuant to a written or oral agreement intended by the parties to create an ongoing relationship, places any of the regular, full-time employees of a client company on its payroll and, for a fee, leases them to the client company.

    4.  “Ongoing relationship” means a relationship wherein the rights, duties and obligations of an employer which arise out of an employment relationship are allocated between the employee.

      Employer Services Assurance Corporation (ESAC)

      ESAC, a non-profit corporation established to accredit PEO and PEO Groups, shall establish and promote adherence to financial, ethical and operational standards for the PEO industry and provide compliance verification and monitoring services to the Office of the Labor Commissioner for purposes of state licensure.  

      1. As an approved assurance organization, ESAC may act on behalf of PEOs to complete the process for licensure including the agreed-upon-submission process via ESAC's online eMac Regulator Portal for the initial PEO license and the renewal of a PEO license.
      2. PEOs clients are available in eMac, and are required to be updated on a monthly basis and reflect client addition and termination. Accredited PEOs are not required to send The Office of the Labor Commissioner “change forms” for clients.
      3. ESAC notifies The Office of the Labor Commissioner regarding all updates and changes made to the accredited PEO therefore accredited PEOs are not required to send updates. 

       

        Important Links

        Forms and Applications

        Professional Employer Organization (PEO) Documents