Texas Professional Employer Organization Bond
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How much does a professional employer bond cost in Texas?
If you own or operate a professional employer organization in Texas, you must post a surety bond. The required amount of your bond depends on the number of covered employees your organization currently employs. Covered employees are individuals who have a co-employment relationship with a client and a professional employer organization. If you employ fewer than 250 covered employees, your posted bond amount must be $50,000. If you have 250 to 750 covered employees, you must post a $75,000 bond. If you have more than 750 covered employees, you must post a bond in the amount of $100,000.
Texas professional employer bonds used to be called staff leasing service bonds. The Texas Department of Licensing and Regulation updated the administrative rules on November 21, 2013, to implement changes in the PEO law created by Senate Bill 1286. The amended professional employer organization rules took effect January 1, 2014.
The price you’ll pay for your surety bonds is based on a review of your personal credit report, as well as on your required bond amount. Request your free bond quote now!
Why do I need this bond?
By posting a Texas professional employer organization bond, principals (professional employer organizations) pledge to conduct business in compliance with Chapter 91 of the Labor Code and with all rules and regulations of the Texas Department of Licensing and Regulation. The bond protects any party who is injured as a result of the principal’s violations of these terms. The principal must reimburse the surety for all damages paid out.
Rely on SuretyBonds.com to handle all of your Texas surety bond needs. Begin our fast and easy bonding process by submitting a bond request now.
What’s the fine print?
PEO bonds in Texas remain in full force and effect until canceled or violated. The surety can cancel the bond at any time by giving written notice of cancellation to the Texas Department of License and Regulation at least 60 days prior to the effective cancellation date.
How to start a professional employer organization in Texas
On November 21, 2013, the Texas Commission of Licensing and Regulation approved a reduction in the initial license and renewal fees for the Professional Employer Organizations program (formerly Staff Leasing Services). The following fee reductions took effect January 1, 2014, for initial applications and February 1, 2014, for renewals. The $150 non-refundable application is not included in the list below.
- PEO Company with 0-249 assigned employees: initial or renewal license fee of $150
- PEO Company with 250-749 assigned employees: initial or renewal license fee of $300
- PEO Company with 750 or more assigned employees: initial or renewal license fee of $550
- Limited License: initial or renewal license fee of $150
Take the first step toward becoming licensed in Texas by purchasing the surety bond you need.
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Additional Resources
Texas Professional Employer Organizations Bond Form
Texas Department of Licensing and Regulation Professional Employer Organizations
Texas Department of Licensing and Regulation Professional Employer Organizations Labor Code
Texas Department of Licensing and Regulation Professional Employer Organizations Forms
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