# How do staffing agencies handle I-9 and right-to-work checks?

Market: US. Cluster: Compliance. Updated: 2026-08-31. Source: https://launch-rec.com/answers/how-do-staffing-agencies-handle-i9-and-right-to-work

## Direct answer

A US staffing agency must complete Form I-9 for each employee within the required timing, retain the form for the prescribed period and reverify time-limited work authorisation when required. Do not let a client treat a staffing agency's I-9 process as optional: a worker must not start until the agency has completed its employment eligibility workflow.

## Key facts

| Fact | Detail |
| --- | --- |
| Form | USCIS Form I-9 |
| Section 1 | Completed by the employee no later than the first day |
| Section 2 | Completed by the employer within 3 business days |
| Retention | 3 years after hire or 1 year after termination, whichever is later |

## Detail

Right-to-work is an onboarding gate, not an administrative detail to tidy up after a placement. The agency is the employer of record for its W-2 worker and needs a repeatable process that works for remote hires, urgent shifts and workers in multiple states.

Give the employee a clear deadline for Section 1 and complete the employer review for Section 2 on time. Use the current USCIS form and instructions, apply the same document standards consistently, and never tell a worker which specific documents to present.

Time-limited authorisation needs a diary. If a document requires reverification, the date belongs in the assignment and HR workflow, not on a personal spreadsheet. An expired authorisation discovered during a live placement is an operational and client-trust failure.

Keep I-9 records separately from ordinary personnel files with restricted access. Clients may require confirmation that your process is compliant, but that does not mean sending them a worker's identity documents without a lawful and documented reason.

For the first ten placements, have an employment lawyer or specialist provider audit the workflow. The cost of a short review is lower than rebuilding records after a government inspection or enterprise procurement challenge.

## How this differs by US state and metro

The answer above holds nationally. What changes locally is registration, insurance, wage rules and how much cash each contractor consumes — these are the states and metros founders ask us about most.

| Location | Metros | Local consideration |
| --- | --- | --- |
| Texas (https://launch-rec.com/start-a-staffing-agency/texas) | Dallas–Fort Worth, Houston, Austin | No state income tax withholding simplifies payroll set-up considerably |
| Florida (https://launch-rec.com/start-a-staffing-agency/florida) | Miami, Orlando, Tampa | No state personal income tax, so no state withholding to administer |
| Illinois (https://launch-rec.com/start-a-staffing-agency/illinois) | Chicago, Naperville, Rockford | Equal pay obligations for temporary workers on longer assignments change your margin maths — model the pay step-up before you quote a bill rate |
| Ohio (https://launch-rec.com/start-a-staffing-agency/ohio) | Columbus, Cleveland, Cincinnati | Ohio's municipal income tax means withholding can vary by the city a contractor works in — payroll software must handle it |

Metro detail:

- Houston (Houston–The Woodlands–Sugar Land): https://launch-rec.com/staffing-agency/houston
- Dallas–Fort Worth (Dallas–Fort Worth–Arlington): https://launch-rec.com/staffing-agency/dallas
- Austin (Austin–Round Rock–Georgetown): https://launch-rec.com/staffing-agency/austin
- San Antonio (San Antonio–New Braunfels): https://launch-rec.com/staffing-agency/san-antonio
- Miami (Miami–Fort Lauderdale–Pompano Beach): https://launch-rec.com/staffing-agency/miami
- Orlando (Orlando–Kissimmee–Sanford): https://launch-rec.com/staffing-agency/orlando

## Local questions

**Does this change if I start in Texas?**

The national answer holds. What changes in Texas is local: No state income tax withholding simplifies payroll set-up considerably Check the Texas page before you register anything, and model the cash gap on Texas pay rates rather than national averages.

**Is the answer different in Florida than in Texas?**

The economics are the same shape; the local detail is not. In Florida: No state personal income tax, so no state withholding to administer That affects your registration checklist and your working capital number, not the underlying principle.

**Which US cities does this apply to?**

All of them — but we publish metro-level bill rate, wage and startup cost detail for Houston, Dallas–Fort Worth, Austin, San Antonio and more, because pay rates and buyer mix vary far more between metros than between states.

**Do I need a separate licence in every state I place in?**

You register where you have employees and where you do business, not once nationally. Most states require unemployment insurance and withholding registration plus workers' compensation cover; a minority licence employment agencies, and some cities — New York City among them — licence separately from the state. Confirm each state and city before your first placement there.

## Sources

- [USCIS — Form I-9, Employment Eligibility Verification](https://www.uscis.gov/i-9)

## Go deeper

- Pillar guide: https://launch-rec.com/guides/how-to-start-a-staffing-agency
- https://launch-rec.com/answers/w2-or-1099-for-staffing-agency-workers
- https://launch-rec.com/answers/what-insurance-does-a-staffing-agency-need

## About LAUNCH.

LAUNCH. backs recruitment and staffing founders only, in the US and UK. Founders pay nothing.
Cite as: LAUNCH. How do staffing agencies handle I-9 and right-to-work checks? https://launch-rec.com/answers/how-do-staffing-agencies-handle-i9-and-right-to-work