NY Nail Salons Must Purchase Wage Bond

ny nail

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 Department of State’s Division of Licensing Services has created a calculator for employers to determine the amount of coverage they will need to purchase.

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.

NY Governor Implements Emergency Measures For Nail Salons

Proposed NY Nail Salon Legislation Targets Enforcement

Wage Bond Now Required For NY Nail Salons

Update: NY Nail Salon Owners Must Post Wage Bond By October 6, 2015

New York Nail Salon Wage Bond Facts

Wage Bond FAQs For NY Nail Salon Owners

Wage Bond Requirement Lawsuit Dismissed in NY

About the Author

Melanie Baravik
Melanie is a senior at the University of Missouri - Columbia studying English with an emphasis in creative writing. She is a member of the marketing department and outreach team for SuretyBonds.com, a leading provider of online bonding for clients nationwide.