California Civil Code requires the posting of a California employment agency bond by all private employment services subject to Title 1812.500 and its subsections. The statute defines “employment agency” as any person who, for a fee or other valuable consideration to be paid by a jobseeker, performs, offers to perform any of the following services: (i) Procures, offers, promises, or attempts to procure employment or engagements for others or employees for employers. (ii) Registers persons seeking to procure or retain employment. (iii) Gives information as to where and from whom this help, employment, or engagement may be procured. (iv) Provides employment or engagements. The California employment agency bond is also required of any person who collects dues, tuition, or membership or registration fees of any sort, if the main object of the person paying those fees is to secure employment. Lastly, any person who, for a fee or other valuable consideration, procures, offers, promises, provides, or attempts to procure babysitting or domestic employment for others or domestics or babysitters for others must also provide a California employment agency bond. The surety bond must run be written in the amount of three thousand dollaras and run to the People of the State of California, by the California Secretary of State. The surety must be admitted to do business in the state and the bond conditioned that the person providing the surety bond will comply with the Act and will pay all sums due any individual or group of individuals when the employment agency has received said funds. The California employment agency bond is for the benefit of any person or persons damaged by any violation of Title 1812.500, or by fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services contracted for with a jobseeker. The surety may cancel the obligation however thirty days prior to the cancellation the surety must send a written notice of the intent to cancel the California employment agency bond to both the employment agency and the Secretary of State, identifying the surety bond and the cancellation date. By its very wording the surety bond is not cumulative. Very special claims procedures are contained in the statute as are the multiple responsibilities of an employment agency. A thorough reading of §1812.504 is necessary in order to adequately understand the nature of this obligation and how claims against the California employment agency bond are processed by the Secretary of State’s office. The surety bond form also guarantees the surety’s compliance with Chapter 2 (commencing with Section 995.010), Title 14, Part 2 of the Code of Civil Procedure.
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