Or. Admin. Code § 259-059-0130 - Proof of Ability to Pay Wages
(1) Private
security entities must provide proof of financial ability to promptly pay the
wages of executive managers, private security professionals, and supervisory
managers employed by or who contract with the private security entity. Except
as provided in section (6) of this rule, the form of proof must be one of the
following:
(a) A corporate surety
bond;
(b) An irrevocable letter of
credit;
(c) A cash deposit;
or
(d) A deposit the equivalent of
cash.
(2) Private
security entities must maintain a surety bond, irrevocable letter of credit, or
deposit at all times. The amount required for proof of ability to pay wages is
based on the number of executive managers, private security professionals, and
supervisory managers employed by or who contract with the private security
entity. The bond, letter of credit, or deposit must be:
(a) $5,000 when a private security entity has
10 or fewer executive managers, private security professionals, and supervisory
managers;
(b) $10,000 when a
private security entity has 11 to 20 executive managers, private security
professionals, and supervisory managers;
(c) $20,000 when a private security entity
has 21 to 50 executive managers, private security professionals, and
supervisory managers; or
(d)
$30,000 when a private security entity has more than 50 executive managers,
private security professionals, and supervisory managers.
(3) Private security entities using a surety
bond or irrevocable letter of credit as proof of ability to pay wages must:
(a) Notify the Department in writing within
10 business days of a cancellation or change of guarantor; and
(b) Submit new proof of ability to pay wages
to the Department within 10 business days of the notice required
above.
(4) An irrevocable
letter of credit submitted to the Department is subject to approval by the
Department prior to the issuance of a license.
(5) Private security entities using a cash
deposit or a deposit the equivalent of cash must complete a trust agreement
with the Department. The deposit must be in a form approved by and payable to
the Department of Public Safety Standards and Training.
(6) If the private security entity is a
public body as defined in ORS 30.260, upon approval by the Department, the
private security entity may provide proof of the ability to pay wages in the
form of a financial officer statement attesting to the private security
entity's ability to promptly pay the wages. This private security entity may
also submit additional evidence such as profit and loss statements, bank
account records, personnel records, or payroll records demonstrating that,
during the licensing period, the private security entity has been paying the
wages to their executive managers, private security professionals, and
supervisory managers. The Department may request such additional evidence if
not provided by the private security entity.
Notes
Statutory/Other Authority: ORS 181A.870 & ORS 181A.900
Statutes/Other Implemented: ORS 181A.900
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