053-2 Wyo. Code R. § 2-6

Current through April 27, 2019

Section 2-6 - Non-Resident Employers' Surety Bond

(a) Pursuant to W.S. § 27-1-106, all firms, corporations or employers of any kind who are non-resident employers and expects to pay wages above the set statutory threshold in the state of Wyoming, are required to file a surety bond or other security with the Division.

(b) Non-resident employer definitions for: Individual, Sole Proprietor, Limited Liability Company (LLC), Limited Liability Partnership (LLP), Limited Partnership (LP), and/or Corporations:

(i) Employer and/or Individual or Sole Proprietor is not domiciled in Wyoming for at least twelve (12) months; or

(ii) If any partner or LLC, LLP or LP member is not domiciled in Wyoming for at least twelve (12) months; or

(iii) If more than three fourths (3/4) of the capital stock of the business is owned by individuals not domiciled in Wyoming for at least twelve (12) months (Corporations).

(c) Employers are exempt from security if:

(i) Expected wages paid to Wyoming employees are below the set threshold per W.S. § 27-1-106; or

(ii) Acquired real property as a non-resident with an unencumbered value greater than or equal to the security amount W.S. § 27-1-106(e) (iii); or

(iii) Employer is a charitable or religious organization W.S. § 27-1-106(g).

(d) Acceptable forms of Security.

A surety bond or security can be filed with the Division in the form of:

(i) Cash bond;

(ii) Surety bond;

(iii) Letter of credit; or

(iv) Real property.

(e) Duration.

Surety bond or security is required for a minimum of two (2) years. This may be extended if the employer does not comply for the two (2) year period.

(f) Penalties.

Pursuant to W.S. § 27-14-307, the penalties for willful failure of any non-resident employer in a covered employment to give bond or other security is:

(i) a misdemeanor, punishable by a fine of not more than five thousand dollars ($5,000.00);

(ii) imprisonment for not more than one (1) year; or

(iii) both (a) and (b).

(g) Forfeiture.

Prior to proceedings for forfeiture of a bond by a non-resident employer, the Division shall notify the employer in writing of the events triggering a possible forfeiture, the amount of the bond to be forfeited, and the employer's right to avoid forfeiture by paying an equivalent amount to the Division within thirty (30) days. The amount to be forfeited shall be the sum of the following:

(i) The remaining reserved amounts for compensable injuries to the employer's workers less the cumulative premiums paid by the employer;

(ii) All unpaid premiums, penalties and interest accruing as a result of late payment or non-payment of said premiums, and reasonable auditing expenses; and,

(iii) Any and all amounts due to the Department of Workforce Services; and, any other section under W.S. Title 27 - Labor and Employment.

053-2 Wyo. Code R. § 2-6

Amended, Eff. 10/13/2016.

Amended, Eff. 8/24/2017.

Amended, Eff. 12/11/2018.