Business & LicensingQuestion 515 of 690
An LLC contractor must file a special bond, distinct from the standard $25,000 contractor's license bond, specifically intended to satisfy wage and benefit claims of the LLC's employees. What is the amount of this LLC employee/worker bond?
a.$25,000
b.$50,000
c.$100,000
d.$15,000
Explanation
B&P §7065.1 requires an LLC applicant or licensee to maintain a separate $100,000 bond for the benefit of its employees damaged by the LLC's failure to pay wages, interest on wages, or fringe benefits. This bond is in addition to the regular $25,000 contractor license bond.
Law Reference: Bus. & Prof. Code §7065.1Practice all 690 questions free — no signup required.
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