Employment agency license — Bond required — Action on the bond

  1. Law
  2. Arkansas Code
  3. Labor and Industrial Relations
  4. Employment Offices and Agencies
  5. Private Employment Agencies
  6. Employment agency license — Bond required — Action on the bond

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  1. (a)

    1. (1) Every application for issuance or renewal of an employment agency's license shall be accompanied by a bond in the sum of five thousand dollars ($5,000) with a duly licensed surety company or companies authorized to do business in this state.

    2. (2) The terms and conditions of the bond shall be approved by the Director of the Division of Labor.

    3. (3) The bond shall be conditioned that the employment agency and each member, employee, shareholder, director, or officer of a person, firm, partnership, corporation, or association operating as the employment agency will not violate the provisions of this subchapter or violate rules or orders lawfully promulgated by the director or violate the terms of any contract made by the employment agent in the conduct of its business.

  2. (b)

    1. (1) If any person shall be aggrieved by the misconduct of any licensee, that person may maintain an action in his or her own name upon the bond of the employment agency in any court of competent jurisdiction or in the Pulaski County Circuit Court.

    2. (2)

      1. (A) All claims shall be assignable, and the assignee shall be entitled to the same remedies upon the bond of the licensee as the person aggrieved would have been entitled to if the claim had not been assigned.

      2. (B) Any claim so assigned may be enforced in the name of the assignee.

    3. (3) Any remedies given by this section shall not be exclusive of any other remedy that would otherwise exist.

  3. (c) Action on the bond required by this section may be maintained by the director in the name of the state in any court of competent jurisdiction or in the Pulaski County Circuit Court, for the benefit of any person or persons aggrieved by the misconduct of the licensee.

  4. (d)

    1. (1) If any licensee fails to file a new bond with the Division of Labor within thirty (30) days after notice of cancellation by the surety of the bond required by this section, the license issued to the principal under the bond is suspended until such time as a new surety bond is filed with and approved by the director.

    2. (2) A person whose license is suspended pursuant to this subsection shall not carry on the business of an employment agency during the period of the suspension.


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