(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previously been denied, or whose certificate had been revoked, upon the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 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.
