[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR530.104]

[Page 155-156]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 530_EMPLOYMENT OF HOMEWORKERS IN CERTAIN INDUSTRIES--Table of 
Contents
 
               Subpart B_Homeworker Employer Certificates
 
Sec. 530.104  Bonding or security payments.

    (a) Where in the Administrator's judgment there is not sufficient 
reason to believe that the Act will be complied with or that money will 
be available if violations of the Act occur, the Administrator may 
condition issuance or renewal of a certificate to an employer upon the 
furnishing of a bond with a surety or sureties satisfactory to the 
Administrator.
    (b) The Administrator shall condition issuance or reinstatement of a 
certificate to any employer whose application for a certificate had 
previously been denied, or whose certificate had been revoked, upon the 
furnishing of a bond.
    (c) Any bond required by the Administrator under paragraph (a) or 
(b) of this section shall be in an amount determined by the 
Administrator, up to $2500 for each homeworker to be employed by such 
employer under the certificate. In lieu of a bond, the employer may 
furnish a cash payment of equal amount, to be held in a special deposit 
account by the Administrator for the period during which the certificate 
is in effect. Such bond, or cash payment, shall be subject to payment or 
forfeiture, in whole or in part, upon a final determination that the 
employer has failed to pay minimum wages or overtime compensation to 
homeworkers in accordance with the Act. Any sums thus paid or forfeited 
to the Administrator shall be disbursed to affected homeworkers in 
accordance with section 16(c) of the Act.
    (d) At the Administrator's discretion, the obligation of a bond may 
be relieved, and any cash payment held as

[[Page 156]]

security in lieu thereof may be refunded (together with any interest 
accrued thereon), upon a subsequent determination that the employer is 
in compliance with the Act and that sufficient funds will be available 
to meet back wage payment obligations in the event of violations of the 
Act.