Proof of Ability to Pay Wages

As part of the Private Security Entity application, you must include proof of your ability to pay wages. One of the following documents must be submitted.

Note: All forms listed below must be completed by the Entity Representative, except where otherwise noted.

Choose One of the Following:

Corporate Surety Bond
Irrevocable Letter of Credit
Trust Agreement
Instructions for Trust Agreement Includes cash deposit or cash equivalency; only required if submitting a Trust Agreement

Required Bond, Letter of Credit, or Deposit Amounts

Per Oregon Administrative Approval 259-059-0130, the required amount depends on the number of personnel employed by the private security entity:

$5,000 — for entities with 10 or fewer executive managers, private security professionals, and supervisory managers
$10,000 — for entities with 11 to 20 personnel
$20,000 — for entities with 21 to 50 personnel
$30,000 — for entities with more than 50 personnel

Frequently Asked Questions

OAR 259-059-0130: Proof of Ability to Pay Wages

An entity can prove the Ability to Pay Wages by providing one of the following:

(a) A corporate surety bond;

(b) An irrevocable letter of credit;

(d) A deposit the equivalent of cash.

Forms for each option are available on our website at: https://www.oregon.gov/dpsst/PSEntity/Pages/ability_to_pay_wages.aspx

The bond, letter of credit, or deposit must be in the amount of:

(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.

A Private security entity that is a public body, as defined in ORS 30.260, 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, pursuant to OAR 259-059-0130.

A PSE Surety Bond.pdf works similarly to insurance, and the company issuing the bond would guarantee the amount required in OAR 259-059-0130. Some insurance companies issue Corporate Surety Bonds, but may be able to refer you to a company that can issue a corporate surety bond if they do not.
An Irrevocable Letter of Credit also works similarly to insurance, and the company issuing the Irrevocable Letter of Credit would guarantee the amount required in OAR 259-059-0130. The main difference is that an Irrevocable Letter of Credit is issued by a financial institution, such as a bank. Your bank may or may not issue irrevocable letters of credit, but may be able to refer you to a financial institution that does.
There are two types of Trust Agreements that can meet this requirement, which both require the completion of the Trust Agreement (Please view the Instructions for Trust Agreement which includes cash deposit or cash equivalency):

A cash deposit: the entity deposits the amount required by OAR 259-059-0130 directly to the DPSST, which is stored in a non-interest-bearing account. The DPSST would only release funds directly for a Final Order for a Wage Claim issued by the BOLI.
A cash deposit equivalent: the entity deposits the amount required by OAR 259-059-0130 with a financial institution into an account with the DPSST as a joint account holder. The financial institution would only release funds directly for a Final Order for a Wage Claim issued by the BOLI.