Following the dismissal of the lawsuit filed by two nail salon associations against the New York Department of State, nail salon owners in the state must adhere to wage bond requirements introduced in July. Businesses employing two or more full time individuals to provide nail services must purchase a bond. The wage bond will ensure that employees are being paid fairly in accordance with New York law. Its introduction came on the heels of a two-part article in the New York Times exposing malpractice in the nail salon industry.
The amount of surety bond coverage required varies depending on the number of employees. Required coverage amounts are as follows:
- at least $25,000 with the equivalent of two to five full time employees
- at least $40,000 with the equivalent of six to ten full time employees
- at least $75,000 with the equivalent of 11 to 25 full time employees
- at least $125,000 with the equivalent of 26 or more full time employees
The official deadline for purchasing a wage bond was October 6, 2015. Employers who fail to purchase a bond can face penalization. First infractions will incur a $500 fine and the Department of State will require proof of wage bond purchase by a certain date. Second infractions incur a $2,500 fine, business closure and the suspension of the business license. Closure and license suspension can be removed upon proof of purchase of the required bond.
Contact the Division of Licensing Services or the experts at SuretyBonds.com with questions about purchasing your wage bond.
Check out the Insider‘s in-depth coverage of the story since its beginning in May.