Who this applies to
The West Virginia Contractor Licensing Board's rule for the license sets no surety bond [2]. A bond can still reach a contractor through wage law, and that bond follows payroll rather than the license.
A company engaged in construction, mining or the transportation of minerals, with employees working in West Virginia, posts a wage bond with the Division of Labor unless it qualifies for one of six [1] exemptions. Form WBA1, the Wage Bond Status Affidavit, sets them out. A company is exempt if:
- its work is limited to single-family dwellings and/or family farming;
- it has no employees working in West Virginia;
- it has been in business with employees in West Virginia for at least one year [1];
- it has been in business in another state for five years [1];
- it has $100,000 [1] or more in available assets; or
- it is a subsidiary of a parent that has been in business for more than five years [1].
What the rule says
The amount is a formula rather than a fixed sum. It starts from gross West Virginia payroll for four weeks [1] at maximum capacity or production and adds 15% [1] to it, so the bond grows with the payroll a company carries in the state at full output. The bond is posted for a period of up to one year [1], and the Division of Labor and the Commissioner of Labor are its obligee. Its legal footing is W. Va. Code § 21-5-14 [1], part of the Wage Payment and Collection Act.
How to comply
The Division of Labor takes the bond in several forms: cash, check or money order; an irrevocable letter of credit; a certificate of deposit; or a surety bond. A surety is one option among these, not a requirement.
- Go through the exemptions on Form WBA1 before anything else; a company that qualifies for one has no wage bond to post.
- Otherwise, take four weeks [1] of gross West Virginia payroll at maximum capacity or production and add 15% [1] to reach the amount.
- Post it with the Division of Labor in one of the accepted forms. The Division's Wage Bond Requirements packet is listed under Sources.
The license is a separate matter, handled by the West Virginia Contractor Licensing Board, part of the Division of Labor, at wvclboard.wv.gov. Confirm the exemption list and the calculation with the Division before posting a bond.
Related
- Contractor license bond cost calculator: once the payroll formula produces an amount, enter it with a credit tier for an annual premium range on the surety route.
- All states' bond requirements: West Virginia's entry alongside every other jurisdiction.