Wage bond required of New York nail salons (appearance enhancement businesses) under General Business Law §404-b to guarantee workers are paid the wages they are owed.
The New York Nail Salon Wage Bond is a wage bond required under General Business Law Article 27 (§404-b), added by Chapter 80 of the Laws of 2015. It guarantees that a nail salon's workers are paid all wages legally owed to them. If the salon fails to pay wages, a worker can recover from the bond.
The bond amount is tiered by the number of full-time-equivalent nail specialty workers. A salon may meet the requirement with this wage bond. Evidence of the bond must be kept on site and available to workers whenever the business is open.
Your bond amount is set by your number of full-time-equivalent nail specialty workers:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| 2 – 5 workers | $25,000 | Wage bond |
| 6 – 10 workers | $40,000 | Wage bond |
| 11 – 25 workers | $75,000 | Wage bond |
| 26 or more workers | $125,000 | Wage bond |
The New York nail salon wage bond must be maintained continuously while the business operates. Keep it active and renew before it lapses; a gap can put your appearance enhancement license out of compliance.
The amount is set by your staff size: $25,000 for 2–5 workers, $40,000 for 6–10, $75,000 for 11–25, and $125,000 for 26 or more full-time-equivalent nail specialty workers.
The surety company uses it to check credit and underwrite the wage bond. It is required to prepare your quote. Your details are sent over a secure, encrypted connection.
The New York Department of State, Division of Licensing Services, under General Business Law §404-b. It protects nail salon workers' wages.
It is a continuous requirement. You must keep it in force the whole time your salon operates, with proof kept on site for your workers.
Tell us a few details and our team will get you a quote. Your information is sent securely over an encrypted connection. All fields are required.
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