diff --git a/.github/workflows/licensed.yml b/.github/workflows/licensed.yml
new file mode 100644
index 0000000..4fee6d5
--- /dev/null
+++ b/.github/workflows/licensed.yml
@@ -0,0 +1,17 @@
+name: Licensed
+
+on:
+  push: {branches: master}
+  pull_request: {branches: master}
+  repository_dispatch:
+
+jobs:
+  test:
+    runs-on: ubuntu-latest
+    name: Check licenses
+    steps:
+      - uses: actions/checkout@v1.0.0
+      - uses: actions/setup-ruby@v1.0.2
+        with: {ruby-version: 3.x}
+      - run: gem install licensed
+      - run: licensed status
diff --git a/README.md b/README.md
index 687cfbe..a9b7432 100644
--- a/README.md
+++ b/README.md
@@ -1,6 +1,7 @@
 # setup-elixir
 
 [![](https://github.com/actions/setup-elixir/workflows/Test/badge.svg)](https://github.com/actions/setup-elixir/actions)
+[![](https://github.com/actions/setup-elixir/workflows/Licensed/badge.svg)](https://github.com/actions/setup-elixir/actions)
 
 This actions sets up an Elixir environment for use in Actions by: