Kentucky law (KRS 337.200 below) requires that a Performance Bond must be kept on file for employers in the construction and mining industries (including the transportation of minerals) who have conducted business within the Commonwealth for less than 5 consecutive years.

A Performance Bond must equal the company’s gross payroll operating at full capacity for four weeks. If the work falls under Prevailing Wage regulations, those rates would apply.

This bond may be secured by any certified surety company. A list of certified companies may be found on-line at Department of the Treasury's Listing of Certified Companies.

A Performance Bond must be submitted on the KY Labor Cabinet’s Continuous Bond Form.

A Performance Bond is required to be kept in effect until either
  1. The company has been conducting business within the Commonwealth for 5 continuous years; or
  2. Until a sworn, notarized statement is received stating a) that all wages have been paid; b) the company is no longer doing business within the Commonwealth; and c) should the company resume working within the Commonwealth, a new Performance Bond will be provided at that time.
If you have any additional questions regarding Performance Bonds or its requirements, please contact this office at

KRS 337.200: Performance Bonds
“Except for employers who have been doing business in the state for five (5) years, every employer engaged in construction work, or the severance, preparation, or transportation of minerals, shall furnish on a form prescribed by the Executive Director a performance bond to assure the payment of all wages due from the employer. Surety for the bond shall be an amount of money equal to the employer’s gross payroll operating at full capacity for four (4) weeks. Any employee whose wages are secured by a bond may obtain payment of those wages, liquidated damages, and attorney’s fees as provided by law on presentation to the Executive Director of a final judgment entered by a court of competent jurisdiction. The bond may be terminated, with the approval of the Executive Director, on submission of the employer’s statement, lawfully administered under oath, that the employer has ceased doing business in the state and that all due wages have been paid.”