A new law was put in place concerning Professional Employer Organizations in the state of North Carolina. The new law, titled HB 738, altered the license bond amount required for Professional Employer Organizations or PEO’s. The prior law called for a surety bond or letter of credit in the amount of $100,000. HB 738 requires a surety bond or a letter of credit in an amount that is equal to 5% of the PEO’s total North Carolina wages; this includes benefits, workers compensation premiums, and unemployment compensation contributions all during the previous year. The amount of the bond acquired can not surpass $500,000. HB 738 became active on October 1, 2008.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.