The New York Department of State requires all nail salons to file a New York Wage Bond. On October 6, 2015, Governor Cuomo ordered this surety bond to be required after an investigation on widespread and ongoing abuse and mistreatment within the nail salon industry. All nail salon owners must obtain a NY Wage Bond.
There are specific requirements that have to be met in order to legally run a New York nail salon. For a nail salon employer who has 2-5 full time employees, the owner needs to file at least a $25,000 surety bond. For 6-10 full time employees, the bond amount needs to be at least $40,000 and for 11-25 full time employees, a $75,000 surety bond must be filed. The greatest bond amount is $250,000 for more than 25 full time employees.
What this bond does.
The name of this bond expresses what this bond is meant to protect; wages. Before Governor Cuomo required a wage bond, employees of nail salons made as little as $30 a day for 12-13 hour days while having to pay extra unreasonable fees to their employer. This bond stops employers from taking advantage of their employees. The New York wage bond guarantees nail salon employees will be paid a legal wage under legal working conditions. In this case, the clients are not the ones being protected which is usually the case with surety bonds. For this type of bond, the employer has to have the bond in order to protect their employees from illegal wages.
Surety1 offers this bond for New York as well as many other states. Visit our page to apply for free!