California Garment Manufacturer Bond
See why this bond matters and how you can easily get one fast!
What is a California Garment Manufacturer Bond?
This will serve as a financial guarantee to the Division of Labor Standards Enforcement (DLSE) Commissioner regarding the on-time payment of wages and fringe benefits contributions by the garment manufacturer.
Through this bond, the employees can file a claim to receive the necessary compensation in case the garment manufacturer fails to pay the wages and fringe benefits.
The garment manufacturer must submit this bond along with the following:
- Completed application form
- Initial or renewal registration fee
- A signed statement that he/she will comply with the minimum safety standards in all areas of the workplace among others
- An oral or written examination that shows the garment manufacturer’s knowledge of the occupational safety and health laws and regulations
The DLSE requires this bond in pursuance of Section 2675 of the California Labor Code.
How much does a California Garment Manufacturer Bond cost?
The bond cost will depend on the garment manufacturer’s credit score.
Those who have excellent credit score will be eligible to pay $100 as bond premium.
The bond amount will be determined by the Division of Labor Standards Enforcement Commissioner. The bond amount will not exceed $5,000.
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How can I get a California Garment Manufacturer Bond?
The first thing that you should do is to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Your application will be processed as soon as we’ve received it. One of our expert surety bond agents will contact you regarding the next step. You will be guided throughout the whole process.
An underwriter will assess the following during the prequalification step:
- Your financial strength
- Your job/business performance history
- Your credit score
Once that’s done, you’ll be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you.
How does a California Garment Manufacturer Bond work?
A garment bond has three parties:
Principal – garment manufacturer
Obligee – State of California
Surety – the surety bond company or the surety bond provider
The principal is the party who will obtain the bond. The principal is also the party who’s required to perform all the conditions of the bond. The Obligee is the party who is requiring the bond and who will benefit from a bond claim. The role of the surety is to assure the obligee that the principal will be capable of fulfilling the obligations covered by the registration. The surety will also provide a financial security by backing this bond in case the principal violates the obligations.
The surety is required to ensure that the obligee will be paid if the claim is valid. After the payment has been settled by the surety, the principal will be asked to reimburse the said payment.
You may submit your application HERE!