Hi, I am working for a security agency that supplies guard personnel to various organizations. We have signed an agreement to provide security guards to various units of the principal employer across different states. The total strength of contract labor is approximately 500 individuals. The security guard strength does not exceed more than 20 in any unit, but the principal employer is insisting on obtaining a contract labor license since the agreement is for 500 security guards. I need suggestions on whether the principal employer is correct in this matter.