State law requires a Maryland employment agency bond from any party engaging in private employment placement within the state. An “employment agency” is a person, partnership or corporation which, for a fee: (1) an employee for a person who seeks an employee, or, (2) employment for clients; or (b) provides a client with information to enable the client to obtain employment; (c) obtains, offers to obtain, or attempts to obtain employment or an engagement in connection with an entertainment, exhibition, or performance. Licensing and the Maryland employment agency bond is also required for parties that obtain, offer to obtain, or attempt to obtain an alien labor certification or immigrant visa for an individual, and participates directly or indirectly in the recruitment or supply of an individual who resides outside of the continental United States for employment in the continental United States. In 2008, the Employment Agencies Law was amended by the Maryland General Assembly to give the Commissioner of Labor and Industry (“Commissioner”) authority to ensure compliance with the Maryland employment agency bond requirement of Section 9-301(a) & (b), Business Regulation Article, Annotated Code of Maryland, receiving from each employment agency a bond written in the amount of $7000. The surety bond is a compliance and indemnity obligation. The form guarantees that the licensee will comply with the provision of Title 9 of the Business Regulation Article and pay all damages caused any person by reason of any misstatement, misrepresentation, fraud, or deceit forbidden by law on the part of such licensee or of his agents or employees. The Maryland employment agency bond contains no cancellation provision nor does it contain term limiting language, suggesting that release may be difficult and cumulative liability a concern. Surety experience however has been favorable with this particular obligation.
Further information and forms can be obtained from the Commissioner as follows:
Maryland Department of Labor, Licensing and Regulation
Division of Labor and Industry, Maryland Employment Agency Bond
1100 North Eutaw Street
Baltimore, MD 21201
Telephone Number: (410) 767-2241
Fax Number: (410) 767-2986
E-mail Address: email@example.com
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