Wage Bond Now Required for NY Nail Salons

UPDATE: Gov. Cuomo set date for all NY nail salon owners to obtain wage bond for October 6, 2015. Get a free, no-obligation quote on a NY Wage Bond below.

New York has adopted more emergency regulations concerning nail salons, including a new wage payment requirement to ensure owners are paying their employees. Additionally, nail salon owners must provide their employees with certain protective equipment to help prevent chemical-related diseases.

Wage Payment Requirement

The New York State Labor Department discovered 116 wage payment violations in 29 salons after conducting a statewide investigation last year. Earlier this May, the New York Times released a series detailing the unethical practices of nail salon owners, including the severe underpayment of employees. In response, New York legislators repealed Section 160.9 of Title 19 of the New York Codes, Rules and Regulations (NYCRR) and added a new Section 160.9 that mandates bonding and/or liability insurance. The legislation requires nail salon owners to maintain proof of financial security for accident and professional liability in the amounts of at least $25,000 per individual occurrence and $75,000 in the aggregate. For payment of employee wages, the bond requirement varies according to the number of full time individuals who provide nail specialty services:

  • 2-5 full time individuals: at least $25,000
  • 6-10 full time individuals: at least $40,000
  • 11-25 full time individuals: at least $75,000
  • 26+ full time individuals: at least $125,000

If for any reason the owner fails to pay wages or supply fringe benefits to his or her employees, the surety will satisfy the payment amount within 30 days of valid claims against this bond. This bond is to remain in full force and effect as long as the owner maintains a business enhancement license. Neither the salon owner nor the surety can terminate this bond unless they provide a 45-day written notice of cancellation to the New York Secretary of State.

Nail salon owners may keep their previous bond or insurance policy until June 30, 2015. A copy of the nail salon wage payment surety bond can be found here.

Equipment Requirement

According to Section 160.11 of Title 19 of the NYCRR, all nail salon owners are required to provide the following equipment to employees:

  • properly fitted N-95 or N-100 respirator to reduce inhalation of dust
  • enough protective gloves to allow employees to wear a new pair of gloves for each customer served
  • sufficient eye protection to prevent splashes of potentially dangerous chemicals from harming the eye

This equipment must be provided at the request of NY nail salon employees and at no cost to the employees. These equipment measures took effect on June 15, 2015.

Other Measures of Note

Additional measures implemented by New York legislators include posting requirements and notices of violation. In late May, Gov. Cuomo unveiled a workers’ bill of rights for nail salon employees that include minimum wage information, a hotline contact for questions and complaints, and restrictions of employer ability to take away wages. The sign should be easily visible to employees and customers alike. If a nail salon receives a notice of violation due to unlicensed activity, the notice must be posted by the salon’s point of entry at least four feet above the ground.

What’s Next?

Nail salon owners should take measures to ensure they will have an adequate bonding and/or insurance policy to satisfy the legal requirement by October 6, 2015. If they need a wage payment bond, salon owners should contact a reliable surety provider to obtain a bond form before filing it with the Department of State. In addition, they should make sure they are in full compliance with the comprehensive emergency regulations that have been implemented since the nail salon fiasco was revealed in May.

Get a Free Wage Bond Quote

 

If you are a salon owner looking for more information on the applications process and pricing, visit the following page at SuretyBonds.com:

New York Nail Salon Wage Bond

 

Photo by: meaduva/Flickr (CC BY-ND 2.0)

 

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