This bond may also be referred to as a job service surety bond or a listing service surety bond.
What is a surety bond, and why do I need one for my California Job Listing Service?
A surety bond is a three-way agreement between a Principal (the owner/operator of the Job Listing Service), an Obligee (California Secretary of State), and a surety company (the company financially backing the surety bond. This bond does NOT operate like an insurance policy for a Principal; instead, it protects the Obligee from any financial obligations that may arise from any misconduct or negligence on behalf of the Principal. By filing this bond, the Principal guarantees that they understand the terms and conditions of their bond, and agree to comply. The operation requirements for Job Listing Services are specified in the California Civil Code Title 2.91, Part 4 of Division 3.
The bond amount is for $10,000 a year, for a term of 2 years. A 2 year bond has a premium of $350.
Per the California Code of Conduct: “The bond shall be for the benefit of any person or persons damaged by any violation of misrepresentation, deceit, unlawful acts of omissions, or failure to provide the services of the job listing service in performance of the contract with the jobseeker, by the job listing service or its agent, representatives, or employees while acting within the scope of their employment.”
A claim against a California Job Listing Service Bond arises if the Principal violates the aforementioned terms. In the event of a claim, the surety company will pay the initial damages, at which point the Principal will be required to fully repay the surety for all damages, plus any additional fees or penalties. In addition to repayment, a surety company may revoke this bond in the event of a claim. If the bond is revoked, business operations must cease until a new bond is filed.
Think of a claim against your bond like a mark against your “credit” in the bond market. A history of claims will complicate any future applications, and may result in your inability to file a bond at all. It is important that you – the Principal – as well as all employees and agents understand all laws and regulations pertaining to your industry, and commit to following them.
Your bond will be issued within 1-3 days after you submit a completed application and payment.
Be sure to include the following in your application, and if "yes," please include an explanation:
1. Have you ever been convicted of a crime?
2. Have you ever had a business license suspended, revoked, or denied?
3. Have you ever been party to a surety bond claim?