California Garment Manufacturer Bond
Bond Requirements & Set Rates
| Bond Amount Required | Annual Premium |
| Varies | Varies |
Garment manufacturers in California must be licensed before operating in the state and may need to post a surety bond. Required by the California Labor Commissioner, the California garment manufacturer bond ensures garment workers are fairly compensated even if the manufacturer fails to meet its payroll obligations.
Cost of a California Garment Manufacturer Bond
The premium for a California garment manufacturer bond is a small percentage of the total bond amount. Both the bond amount and cost vary depending on the number of employees and the size of the business.
Why You Need a California Garment Manufacturer Bond
Applicants for a garment registration certificate who have been issued a citation or assessment by either the U.S. Department of Labor or Department of Industrial Relations must hold a $5,000 surety bond. The California garment manufacturer bond involves three parties:
- Principal: Garment manufacturer
- Obligee: California Department of Industrial Relations (DIR)
- Surety: Bonding company
If employees suffer financial loss due to unpaid wages or labor law violations, a claim may be filed against the bond. The surety investigates the claim and, if valid, compensates the harmed party up to the bond amount. The manufacturer must then reimburse the surety for any claim payments made.
Get Your California Garment Manufacturer Bond
Protect your workers and stay compliant with a California garment manufacturer bond from NNA Surety. Complete this form, provide payment details, and receive your garment industry bond for filing with the California Labor Commissioner. For more information, call 855-431-7687.