A wage bond is known as something necessary in the construction, mining, and transportation services. This does not, however, exclude other types of employers from being required to post a wage surety bond.
The need of a wage bond is recognized in every state. There are similarities and differences by which companies are automatically mandated to secure a surety bond. They all, however, have recourse to investigate the necessity of a bond for any business.
Purpose Of A Wage Bond
When an employee isn’t paid by an employer, what is their recourse? A wage bond provides employees not only with a quick resource but a way to fully recover owed funds.
The surety bond is taken out by the business so in the event that an employee claims non-payment the bond covers the cost.
Which Companies Require A Wage Surety Bond?
Construction companies tend to be among the businesses often required to secure this type of bond. In part, this is due to the number of liens the courts deal with each year concerning failure to pay constructional workers.
Different states require different things. Take West Virginia. As a big mining state, they have stipulations concerning wage bonds for mining companies and the transportation of mining materials.
Governments constantly review the need for wage bonds. Last year, New York Governor Andrew Cuomo change the wage bond requirements to include nail salons after an investigation revealed unlawful employment practices.
Obtaining The Correct Surety
Unclear on whether your business is required to secure a surety bond? Jurisco knows surety bond regulations for all 50 states. No matter where a business is located, Jurisco can tell clients what their state allows.
The wage bond application process is quick. in most cases Jurisco can secure a surety bond on the same day an application is received. Contact Jurisco today to get started.