Frequently Asked Questions
Can an employment agency use the bond to cover disputes between job seekers and employers regarding employment terms or conditions?
This is an uncommon but important question. The primary purpose of the Washington State Employment Agency $2,000 Bond is to ensure that employment agencies conduct their business ethically and in compliance with state regulations. It typically does not cover disputes between job seekers and employers related to employment terms, conditions, or contracts. Employment agencies usually need to address such disputes through legal or contractual means.
What happens if an employment agency closes or goes out of business while their bond is still active?
This is an uncommon but practical concern. If an employment agency decides to close or goes out of business while their bond is still active, they should inform the relevant authorities and fulfill any outstanding obligations, including helping job seekers find new placements or returning fees to clients, where applicable. Once all obligations are met, the agency can usually request to cancel the bond, subject to regulatory approval. It’s important to follow the appropriate procedures to ensure a smooth closure.
Is it possible for an employment agency to obtain a bond with a higher amount than the required $2,000 in Washington State?
This is an uncommon but valid question for employment agencies. In some cases, employment agencies may choose to secure a bond with a higher coverage amount than the required minimum of $2,000 to provide additional reassurance to job seekers and employers or to meet specific contractual requirements. While the state mandates a minimum bond amount, agencies can opt for a higher bond to align with their business needs and objectives. However, they should be aware that the premium cost will likely increase accordingly.