New Massachusetts Professional Employer Organization Bond Requirement

Theres a new Massachusetts professional employer organization bond requirement

On August 1, 2018, Massachusetts enacted House Bill 4732 which establishes the requirement for a professional employer organization, or PEO, must be bonded prior to receiving a license. PEOs are companies that are hired by other companies to complete necessary tasks for managing employees, such as payroll, employee benefits, or human resource duties. With the passage of house bill 4732, PEOs will now be required to post a surety bond in the amount of $250,000 with the Director of the Department of Labor Standards and maintain a positive working capital.

This bill effectively replaces Massachusetts House Bill 4714 and is referred to as an “emergency bill“, meaning the bill became effective the moment it passed or was approved by the governor. The reason house bill 4732 was passed as an emergency bill is because it is considered to be “necessary for the immediate preservation of the public convenience.” The goals of the bill include improving economic infrastructure and promoting economic opportunity.

In addition to the $250,000 surety bond requirement, the organization will face consequences if they do not maintain a positive working capital. If the PEO fails to maintain adequate working capital, the PEO may have to post some sort of security equal to the amount of the deficiency in addition to the $250,000 bond. This is intended to cover any taxes, wages, benefits or other entitlements necessary to the covered employees.

Need a surety bond for a Massachusetts professional employer organization?

The experts at have years of experience issuing professional employer organization bonds in other states, meaning they can get you the bond you need quickly and easily. For a free, no obligation quote on your surety bond, visit or give us a call today at 1 (800) 308-4358.


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About the Author

Liv Jackson
Liv is a senior at the University of Missouri - Columbia studying Journalism and Spanish. She is a member of the marketing department and outreach team for, a leading provider of online bonding for clients nationwide.