New York Nail Salon Wage Bond: What You Need to Know
New York State Department of State requires all nail salons to obtain a wage bond before they can obtain a business license. A wage bond is a type of surety bond; a three-party agreement between the nail salon owner (the principal), a surety company, and the state of New York. The bond protects employees from wage theft and other wage violations.
What amount is the surety bond?
The amount of the wage bond required depends on the number of full-time employees (or equivalent) that the nail salon employs:
- 2-5 employees: $25,000 bond
- 6-10 employees: $40,000 bond
- 11-25 employees: $75,000 bond
- 26 or more employees: $125,000 bond
How do I get a New York nail salon wage bond?
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the surety bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
What does a wage bond cover?
A New York nail salon wage bond covers the following:
- Unpaid wages
- Overtime pay
- Vacation pay
- Holiday pay
- Other fringe benefits
What happens if a nail salon employee files a claim against the wage bond?
If a nail salon employee files a claim against the wage bond, the surety company will investigate the claim. If the claim is valid, the surety company will pay the employee the amount of wages owed, up to the total amount of the bond. The surety company will then seek reimbursement from the nail salon owner.