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?
Explanation
B&P §7071.6.5 makes a $100,000 surety bond a condition of issuing, renewing or keeping an LLC contractor licence. It runs to the LLC's own employees, for wages, interest on wages and fringe benefits — and where a collective bargaining agreement applies, to welfare, pension and apprenticeship fund contributions. It is separate from, and additional to, the $25,000 licence bond under §7071.6, which protects consumers rather than employees. (Do not look for this in §7065.1: that section governs examination waivers.)
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