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Licensing and application process

Worker leasing companies (professional employer organizations/PEOs) must be licensed in Oregon before providing worker leasing services in the state. There are two types of license: full and limited. The fee for both is $2,050, and the license is valid for two years, unless renewed.

Oregon recognizes ESAC as an approved independent national assurance organization. ESAC-certified PEOs may apply for licensure or renewal via the ESAC portal in lieu of filling out Oregon’s license application or renewal form. ESAC certification streamlines the application process, but does not guarantee a PEO will be licensed in Oregon.

Full license

All worker leasing companies operating in Oregon must have a full license (see "Application process" below), unless eligible for a limited license.

Requirements for obtaining a full license:

  • A complete initial or renewal application 
  • Evidence of workers’ compensation insurance
  • Registration with the Oregon Secretary of State Corporation Division
  • Verification of state and federal tax compliance
  • Signed disclosure of relevant civil, criminal, or administrative actions against applicant, officers, owners, and directors
  • Notarized affidavit from applicant
  • List of all states where applicant holds a license, registration or certification, or for a new company, evidence of expertise for newly formed worker leasing companies
  • List of Oregon clients
  • A written procedure to ensure certain Oregon OSHA laws will be met
  • Payment of the required licensing fee

Limited license

Oregon offers a limited worker leasing license for out-of-state PEOs that do not plan to expand into Oregon and that otherwise fit the criteria listed below. The limited license costs the same as a full license, but the application process (see "Application process" below) is less involved.

To apply for a limited license, a PEO must:

  • Maintain an active license or certification in a state identified by Oregon as substantially similar
  • Be domiciled outside of Oregon, and not maintain an Oregon location
  • Not directly solicit clients located or domiciled in Oregon
  • Have no more than two Oregon clients
  • Have no more than five Oregon employees, total

Requirements for obtaining a limited license:

  • A complete application 
  • Evidence of workers’ compensation insurance
  • Registration with the Oregon Secretary of State Corporation Division
  • Verification of state and federal tax compliance
  • Notarized affidavit from applicant
  • List of states where the PEO is licensed that are substantially similar to Oregon
  • List of Oregon clients
  • A written procedure to ensure certain Oregon OSHA laws will be met
  • Payment of the required licensing fee
A PEO holding a limited Oregon license must apply for a full license within 30 days of no longer meeting the criteria listed above.

Other licensee information

If a worker leasing company changes its form of legal entity, the new entity must submit an application to become licensed. A worker leasing license cannot be transferred to another entity. 

Worker leasing companies must provide written notice to the division of any change to information on an application within 30 days of the change.

The division can suspend or revoke a worker leasing license if the worker leasing company fails to comply with state requirements. Civil penalties may also be imposed for noncompliance.

Application process

Step 1: Register with the office of Secretary of State, Corporation Division to conduct business in Oregon. 

Step 2: Identify and review the fulllimited, or full renewal license application and collect the required information.

Step 3: Carefully prepare the application. Incomplete applications will be rejected.

Step 4: Attach completed Disclosure Addendum for the applicant and any controlling person if required.

Step 5: Prepare or update a written procedure to reflect how the applicant ensures its Oregon clients comply with worker health and safety laws.

Step 6: Complete the following tax compliance forms and include them with your application. The division will submit the forms to each taxing agency on your behalf.

Step 7: Scan and email the following to the Worker Leasing Program for preliminary review:

  • Application
  • Disclosure addenda, if applicable
  • Tax compliance releases
  • Oregon client list (for renewals only): List all Oregon clients, and identify who provides coverage

Step 8: Make required revisions at the direction of program staff members.

Step 9: Upon approval, and at the direction of program staff members: Scan and email the finalized application packet with any required changes, and mail the required licensing fee to the Worker Leasing Program.

Contact

888-877-5670 (toll-free)
workerleasing.wcd@oregon.gov

Licensing
Sabrina Wright: 503-947-7544
sabrina.k.wright@oregon.gov

Compliance
Lorrie Baker: 503-947-7591
lorrie.d.baker@oregon.gov

Worker leasing notices, terminations, and update notices
Fax notices to: 503-947-7820
Questions:
Candice Blanchard: 503-947-7675
candice.s.blanchard@oregon.gov

Resources

List of licensed worker leasing companies​​​​​​​​
Independent contractors​​​​

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