Indiana Code 27-16-6 was passed during the 2013 regular session of the Indiana General Assembly. This legislation creates a surety bond requirement for PEOs (professional employer organizations). IC 27-16-6 states the following:
Sec. 1. (a) A PEO or PEO group shall do one (1) of the following:
(1) Maintain positive working capital, as reflected in the
financial statement submitted to the department by the PEO or
PEO group under IC 27-16-4.
(2) If the PEO or PEO group does not meet the requirement of
subdivision (1), maintain any of the following with a minimum
aggregate value in an amount that is at least sufficient to
eliminate the PEO’s or PEO group’s negative working capital
plus one hundred thousand dollars ($100,000):
(A) A surety bond.
(B) An irrevocable letter of credit.
(D) A combination of items listed in clauses (A) through (C).”
This means that if an Indiana PEO agent or organization does not maintain a positive working capital, they must obtain a surety bond in order to continue their services.
To read the full text of IC 27-16, click here.
If you’re in need of a surety bond in Indiana or any other state, contact SuretyBonds.com online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday between 8 a.m. and 7 p.m. CST. Our surety experts are on hand, ready to answer your questions and provide you with fast, easy and accurate bonding services. Get your free, no-obligation bond quote today!