Maryland Employment Agency Bond

MarylandOn 05/13/2008, a new law was enacted in Maryland regarding employment agencies. The new law, HB 866/SB 650, is an enforcement measure relating to the surety bond requirement for employment agencies in the state. The current law requires a “penal bond” in the amount of $7,000. HB 866/SB 650 permits the Commissioner of Labor and Industry to examine complaints that an agency failed to acquire the required bond; if this has occurred the commissioner will supply a notice to the agency requiring compliance or the agency will have to present a reason for the absence of the bond. If the agency failed to acquire the bond after such notifications are issued, a penalty in the amount of $1,000 per violation may be required from the agency.