The Staffing Agency Compliance Checklist
Forty-plus items across nine areas - built for operators, ordered the way exposure actually arrives. Work it quarterly; the sharp edges carry inline context so you know why each line exists.
Entity, licensing & registration
- State/provincial business registration in every jurisdiction where workers are placed
- Ontario: THA/recruiter licence current ($1,500 fee, 2-year terms as of Jan 1, 2026; C$25,000 security posted)
- Quebec/BC: provincial permit regimes verified before first placement
- Registered agent and local tax accounts per state of operation
Payroll & tax
- Federal, state/provincial, and local withholding configured per worksite
- Daily overtime rules configured where required (California is daily, not just weekly)
- Regular-rate calculation includes bonuses and differentials in overtime math
- CPP/EI configured for Canadian payroll; WSIB or provincial equivalent registered
Worker eligibility & screening
- Form I-9 completed and retained for every US hire, with document inspection rules followed
- E-Verify enrollment where mandated by state or contract
- Background check consent, adverse-action process, and per-state limits documented
- Drug testing policy aligned to client requirements and state law
- Identity verification at application and onboarding (post the DOJ fake-worker cases, this moved from paperwork to priority)
Insurance
- Workers compensation active in every state/province of placement, experience mod tracked
- General liability at or above the highest client contractual minimum
- EPLI in force - high-turnover multi-site employment is exactly its use case
- Certificates of insurance ready to attach to any RFP within one business day
Safety (shared-site duties)
- Site-specific safety orientation documented per worker before first shift
- Injury reporting workflow defined between agency and client, in writing
- OSHA recordkeeping responsibilities allocated in the client agreement
Contracts & client agreements
- MSA defines who owns supervision, termination, and payroll decisions (co-employment control)
- Conversion fees defined in the agreement, not negotiated after the fact
- Payment terms priced into rates; rate card reopener conditions written
- Indemnification and insurance minimums reviewed by counsel
Records & retention
- Payroll and time records retained per federal and state schedules
- Screening consents and results stored separately from personnel files where required
- Assignment agreements and client contracts retrievable within a day - diligence-grade hygiene
California-specific (if placing there)
- Wage-hour self-audit completed within the last 12 months, with a documented remediation trail
- Supervisor training on meal/rest timing and time-edit rules, recorded
- 60-day PAGA notice response plan written before any notice arrives
- Local minimum wages tracked per worksite (state floor $16.90/hr in 2026; many localities and industry schedules higher)
AI governance (client-facing)
- One-page AI use inventory current
- Human review checkpoint at every adverse candidate decision
- Bias testing performed periodically with recorded results
- Candidate-facing AI disclosure language in use
This checklist is informational, not legal advice; requirements vary by jurisdiction and change. Use it to structure the conversation with employment counsel, not to replace one. Reviewed July 8, 2026.
Deep dives in the compliance hub