Wage & Welfare Bond (Union Fringe Benefits)
Union contractors are often required by their collective bargaining agreement to post a wage and welfare bond guaranteeing fringe-benefit contributions to the trust funds. We place them for signatory contractors.
- Bond amount
- Set by the collective bargaining agreement
- Authority
- Required by the union trust funds
The premium is a percentage of the bond amount, set by underwriting. The figures above are the bond amounts, not what you pay.
What it is
A wage and welfare bond, also called a union fringe benefit bond, guarantees that a signatory contractor pays the wages and benefit-fund contributions required by its collective bargaining agreement. The union trust funds are the beneficiary, and the agreement or trust sets the amount. It protects the funds and the workers, not the contractor.
Who needs it
- Union signatory contractors required to bond fringe contributions
- Contractors joining a union or trade agreement
- Employers a trust fund requires to post a wage and welfare bond
Bond amounts and requirements are general guidance and can change. Confirm the current requirement with the listed agency before you file. We will quote your exact bond.
Tough credit or a prior claim? It's welcome here. See how we place hard-to-place surety bonds, or get a quote and we'll place your exact bond.
Wage & Welfare Bond FAQs
How is the wage and welfare bond amount set?
Can a smaller union contractor get one?
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