The California Contractors State License Board (CSLB) may require you to file a California LLC Employee / Worker Bond to renew your license under the Business and Professions Code Section 7071.6.5 if you have failed to pay wages, interest on wages or fringe benefits in the past.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The California LLC Employee / Worker Bond holds you accountable for your business decisions.
By possessing a California LLC Employee / Worker Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.