House Bill 18 went into effect on July 1, 2018, and amends the previous surety bond requirement for non-resident employers to submit a surety bond with the Wyoming Department of Workforce Services. A non-resident employer is considered to be an employer who has yet to live in Wyoming for one year prior to conducting operations within the state.
How much is the bond amount for a Wyoming non-resident surety bond?
Previously, non-resident employers were required to be bonded when their company’s wages to the state were anticipated to exceed $10,000. The minimum bond amount was $20,000, plus an additional $2,000 per $120,000 or fraction of $120,000 to be exceeded annually.
The new legislation reduces the minimum bond amount to $8,000, and the bond is now required when a nonresident employer expects to meet or exceed $4,000 in monthly wages paid to the state. The bond amount will increase by $2,000 when the payroll increases by $1,000. When the expected wages are anticipated to be greater than $20,000, the bond increases by $1,000 for each $1,000 of the wages expected to be paid. Under HB 18, there is no maximum cap on the amount of a surety bond for non-resident employers and the bond must be kept for at least 2 years.
Are there any alternatives to purchasing a bond?
Alternatives to submitting a surety bond include non-resident employers obtaining either a cashier’s check or a letter of credit. Equity in real property may be used as a valid form of security, as well.
What if a non-resident employer fails to post a bond?
A non-resident employer that does not post a bond or other form of security is guilty of a misdemeanor in the state of Wyoming and may be fined a maximum of $5,000, face up to one year of imprisonment, or both.
What requirements must be met in order for a non-resident employer to no longer need a surety bond?
The director of the Department of Workforce Services of Wyoming can allow for the withdrawal of an employer’s security. However, they must make payments for two years, demonstrate that they have lived in the state for two years with no intention to move, purchase land that is equal to or greater than the value of the bond or other security, and meet all other requirements outlined by the Worker’s Compensation Act.