Illinois Private Employment Agency Bond

Illinois private employment agencies must post a $5,000 surety bond as part of the licensing process. The bond protects job seekers and employers by ensuring agencies follow the Private Employment Agency Act and administrative rules. Licenses and bonds run for one year and must be renewed together. Applicants can secure bonds quickly online, and Lance Surety offers flexible underwriting even for those with challenged credit.

A private employment agency bond is a surety bond that protects the public by holding the agency accountable for compliance with the Private Employment Agency Act and Part 680 Administrative Code. It’s a three‑party contract among the agency, the state and the surety, and it ensures compensation for damages caused by negligence or misconduct. 

Think of it as a security deposit that reinforces trust. Because this bond belongs to the broader class of surety bonds, you can learn more about their structure in our surety bond article. The statutory authority for this requirement is found in the Private Employment Agency Act and the Rules for private employment agencies.

Although the bond amount is $5,000, your premium is only 1–5% of that sum. In most cases the annual cost falls between $100 and $250, with lower rates available to applicants with strong credit and business experience. The bond term mirrors the one‑year license, so you’ll pay this premium each year when you renew. Keep in mind that Department licensing fees are separate and range from $250 to $500 depending on how many counselors you employ. We offer free quotes and will shop multiple sureties to secure the lowest possible rate for your situation.

Obtaining your bond involves a few simple steps. Gather your license application, background information, projected operating expenses and counselor licensing details as outlined by IDOL. Submit our online application for a quote, and our underwriters will review your credit and business history. 

Once you accept the premium, the surety issues the bond and we send you the original for signature. File the signed bond with the IDOL’s licensing section at 160 North LaSalle Street, Chicago, along with your license paperwork. Remember to renew both your license and bond each year, using a continuation certificate if needed.

Yes. Our company routinely assists applicants with challenged credit histories. Even if your credit score is less than perfect, we work with multiple sureties to find an option at a reasonable rate—usually 3–5% of the bond amount. We explain all charges upfront and never impose hidden fees. Improving your credit and financial statements over time can lower your renewal premium, and we provide guidance to help you achieve that goal. Applicants who have questions about the bonding process can explore our surety bonds questions page for additional guidance.

Keeping your bond active is crucial because the surety may cancel the bond by providing the Department of Labor and the principal with 60 days’ notice. If that happens, you must replace the bond before cancellation takes effect to avoid license suspension. The bond also serves as a financial guarantee against any negligence or misconduct by the agency, so maintaining it demonstrates professionalism and builds trust with clients.

Is a $5,000 bond required in Illinois? 

Yes. Section 2 of the Private Employment Agencies Act requires applicants to file a $5,000 surety bond with the Department of Labor. Without this bond your license application will not be approved.

Where do I file the bond? 

You must file the original signed bond with the Illinois Department of Labor’s Private Employment Agencies Licensing Section at 160 North LaSalle Street, Suite C‑1300, Chicago, IL 60601. Photocopies are not accepted.

Do the bond dates have to match the license dates? 

Yes. IDOL requires the issue and expiration dates on the bond to match the license. When renewing, submit either a new bond or a continuation certificate. The surety must give 60 days’ notice before canceling the bond, but you must replace any canceled bond to avoid license suspension.

Illinois Department of Labor. (2021, May 6). Guidelines for ALL applications: Private employment agencies licensing section [PDF]. Retrieved September 12, 2025, from
https://labor.illinois.gov/content/dam/soi/en/web/idol/laws-rules/fls/private-employment-agency/forms-links/pea-license-instructions%20(1).pdf

Illinois Department of Labor. (n.d.). Private Employment Agency Surety Bond Form [PDF]. Retrieved September 12, 2025, from
https://labor.illinois.gov/content/dam/soi/en/web/idol/laws-rules/fls/private-employment-agency/forms-links/pea-surety-bond-form-9-21-20.pdf

Illinois General Assembly. (n.d.). 225 ILCS 515/2 – Private employment agencies: Bond requirement. Retrieved September 12, 2025, from
https://www.ilga.gov/documents/legislation/ilcs/documents/022505150K2.htm

Cornell Law School. (2025). Surety bond. Legal Information Institute. Retrieved September 12, 2025, from
https://www.law.cornell.edu/wex/surety_bond 

Lance Surety Bonds. (n.d.). Illinois surety bonds.
https://www.lancesuretybonds.com/bonds-by-state/illinois

Lance Surety Bonds. (n.d.). Surety bond.
https://www.lancesuretybonds.com/learn/what-is-a-surety-bond

Lance Surety Bonds. (n.d.). Surety bonds questions.
https://www.lancesuretybonds.com/learn/faqs

Lance Surety Bonds. (n.d.). Surety bond quote (online application).
https://www.lancesuretybonds.com/surety-bond-quote