Absolute Surety is a leading provider of New York State bonds. Apply for a NY Surety Bond today! We offer a full range of bonds, including Surety Bonds, Fidelity Bonds, garage liability and more. Even if you do not see the bond you are looking for, we likely have it. Contact us for a full list if you don't see what you need.
The New York nail salon wage bond was mandated in the summer of 2015. The New York State Division of Licensing Services requires nail salons and other appearance enhancement businesses to get a wage bond.
What is the purpose of the bond?
Nail salons and appearance enhancement businesses employing two or more full-time employees or the equivalent for nail specialty services need a surety bond. The wage bond was introduced after it was found that many nail salon employees were not being paid fair wages. The Division of Licensing Services in the Department of State now requires the surety bond as the salon owner’s guarantee that employees will be paid the wages they are owed.
If a nail salon or appearance enhancement business does not have the appropriate surety bond, they can be fined $500 for the first violation. A second violation results in a $2,500 fine and suspension of the business’s license and the Department will seek an order to close the business.
How much does the wage bond cost?
Wage bond principals pay a premium that is a percentage of the bond’s coverage amount. New York nail salon wage bond amounts are calculated based on the number of full-time or the equivalent licensed employees:
Two to five licensed full-time employees—$25,000 surety bond
Six to ten licensed full-time employees—$40,000 surety bond
11 to 25 licensed full-time employees—$75,000 surety bond
26 or more licensed full-time employees—$125,000 surety bond
Wage bond applicants can expect to pay 1-10% of the bond amount—applicants needing a $75,000 bond might pay $750-$7,500 depending on a review of their credit history. Absolute Surety can help get you the best rate for your surety bond.
"We have continued to use Absolute Surety for our dealer bond needs. We first started with Absolute for the great pricing and have stayed as the company is quick to respond to questions and very user-friendly. Highly recommended!"
Phil Bell, So Cal Performance