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What is a California LLC Employee/Worker Bond?

A California LLC Employee/Worker Bond is a $100,000 surety bond required by the Contractors State Licensing Board (CSLB) to protect workers from any issues concerning pay and benefits. This bond is necessary due to a lack of case law that deals with limited liability companies. As with other surety bonds, the Employee/Worker bond is a three-party contract between Principal (your LLC), Obligee (CLSB), and Surety. The surety provides both the bond and the financial backing.

Alongside this requirement, a $25,000 Contractor’s License Bond is also deemed necessary in the State of California.

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An LLC Employee/Worker Bond is required by California Contractor License Law for all licensed contractors organized as LLCs. The requirement was established by the California legislature who determined LLCs have a higher rate of failure to properly pay wages or fringe benefits to workers employed by or contracted to perform work. Prior to this legislation in 2012, a contractor business was not permitted to organize as an LLC.

The LLC Employee/Worker bond renews on an annual basis, for as long as the license is held, unless canceled or withdrawn from by the surety (see Article 13 [996.310 - 996.360] of California's Code of Civil Procedure for further information regarding cancellation or withdrawal).

You can apply instantly by clicking here. Feel free to send us a message via live chat or give us a call if you have any questions about the Employee/Worker bond or the bonding process.

ProSure Group is a bonding company that has been in the surety bond business since 1993. Our bond experts issue California surety bonds and other license bonds all over the nation every year. We have exclusive partnerships with over 30 different surety bond companies. Our streamlined process ensures that you get the expertise you need in handling your bond needs while we strive to get you the best, most competitive bond pricing and terms available in the marketplace!

Related bonds The ProSure Group is happy to offer:

If you don't see the bond you're looking for give us a call at (800) 480-3883 and speak to one of our many
California LLC Employee/Worker Bond Surety Bond Experts!
Type Bond Obligee Bond Amount
License California LLC Employee/Worker Bond California Contractors State License Board