New York Employment Agency Bond
Know the importance of this licensure requirement and how your business will benefit from it!
What is a New York Employment Agency Bond?
It is a monetary assurance provided by the employment agency to the Industrial Commissioner of the State of New York.
Through this bond, the employment agency is guaranteeing its compliance to the provisions of Article 11 General Business of the New York Consolidated Laws as well as to the rules and regulations of the New York State Department of Labor.
This bond will also be used to indemnify any person who will be harmed by the noncompliance of the licensed employment agency to the said laws, rules, and regulations. Some of the violations that are covered by this bond are as follows:
- Encourage an employee to quit his job to get another job through the employment agency
- Send an applicant to an employer even if there’s no bona fide order;
- Send an applicant to a place that the employment agency knows is being used for immoral or illicit purposes;
The employment agency must submit this bond before the license is issued.
This requirement is in pursuance of Section 177 General Business of the New York Consolidated Laws.
How much does a New York Employment Agency Bond cost?
The bond premium varies. This will depend on the employment agency’s credit score and the bond amount.
The bond amount is $ 5,000.
However, if the employment agency will engage in the recruitment of domestic or household employees from outside the continental United States or will conduct a modeling agency, the bond amount is $10,000.
The bond premium for applicants with excellent credit scores starts at $100.
How can I get a New York Employment Agency Bond?
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you may APPLY HERE!
STEP 2: An underwriter will take a thorough look at the following:
- Your financial strength
- Your job performance history
- Your credit score
STEP 3: After the underwriting process has been fulfilled, we will issue your surety bond and send it to you immediately!
How does a New York Employment Agency Bond work?
This bond will serve as a path of recourse for the obligee (People of the State of New York) if the principal (employment agency) commits misconduct. The party who must fulfill the obligation is the principal. The surety bond company will financially support the principal. In doing so, the immediate financial responsibility will be shouldered by the surety.
When a bond claim is made by the obligee, it is the duty of the surety to settle the claim once its validity has been determined. Once the surety has paid the claim, the principal must reimburse the full amount under the terms of the bond.
Ready to apply? START HERE!