A clearance letter—also referred to as a “letter of good standing” or a “compliance letter”—is proof that a company or individual currently has an account in good standing with us.
Employers can withhold funds from contractors or subcontractors until they receive confirmation they have paid their workers’ compensation assessments. The clearance letter provides that confirmation and authorizes the release of final payment.
You should request one for any contractor or subcontractor you're thinking of hiring. Otherwise, you might be responsible for the cost of covering them while they work for you.
Request a clearance letter
Contact us to request a clearance letter.
Include the business or operating name of the company or individual you’re interested in and your complete contact information.