Making payroll companies prove they have insurance against theft

Providing for proof of fidelity insurance and surety bonds by payroll processors; and imposing a penalty.

Introduced· 2025-08-11

Who's it for

Who's it for: Workers

What it means for you

8/10Helps you

Good for everyday people ·

Draft summary, still being checked against the official bill text. Read the source to confirm.

This bill would force companies that process paychecks to carry insurance, ensuring workers and businesses do not lose money if the payroll company goes broke or steals it.

Our take

What we think, in plain words.

When a business hires an outside company to handle its payroll, they trust that company with a lot of money. If that payroll company goes bankrupt or someone steals the funds, workers might not get paid. This bill would step in to fix that blind spot. It would make payroll companies carry special insurance to cover the losses if something goes wrong. It is a smart, simple protection for regular workers and small businesses.

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The facts

What the bill actually says, no spin.

Requires companies that handle paychecks to prove they have insurance against theft or failure.
Charges a penalty to payroll companies that refuse to follow the rules.
Protects the money meant for your paycheck before it reaches your bank account.