Bond Amount
$3,000
Requiring Entity
State of California Secretary of State
Underwriting Criteria
Personal Credit Check of Business Owner
Premium Rate(s)
1 Year -$200.00*
Who is Required to Secure this Bond
An Employment Agency Bond in the amount of $3,000 is mandatorily required to be filed with the State of California Secretary of State, as set forth in the California Civil Code Section 1812.503, for every employment agency. If any employment agency fails to obtain a new bond and file a copy of that bond with the Secretary of State by the effective date of the cancellation or termination of the former bond, the employment agency shall cease to conduct any business unless and until a new surety bond is obtained and a copy of that bond is filed with the Secretary of State.
Bond Requirement Specifics
The Employment Agency Bond requirement is set forth in the California Civil Code Section 1812.503, to be in favor of, and payable to, the people of the State of California and shall be conditioned that the person obtaining the bond will comply with this title and will pay all sums due any individual or group of individuals with the person or his or her representative, agent, or employee has received those sums.
Who is protected Under this Bond
Consumers of the employment agency who have enlisted their services. The bond shall be for the benefit of any person or persons damaged by any violation of this title or by fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the employment agency in performance of the contract with the jobseeker, employment agency of its agents, representatives, or employees while acting within the scope of their employment.
Underwriting Process
The Employment Agency Bond is underwritten based on a personal credit check of the business owner(s). In the event the personal credit does not meet the minimum threshold for a standard approval, the premium rate may be elevated. Upon approval for the bond, the original signed application must be forwarded to our office.
What you Need to do Once you have your Bond
Upon approval and payment of the bond, the original bond will be mailed to you. A copy of the bond must be filed with the Secretary of State.
Obligee Link
http://www.sos.ca.gov/
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.