Other Commercial

Union Wage and Welfare Bond

A union wage and welfare bond is a bond a labor union or its benefit funds require from an employer to guarantee union wages and fringe benefit contributions.

Required by

Local labor unions and union benefit trust funds

Bond amount

Set by whoever requires the bond. We confirm it.

What this bond guarantees

The bond promises the union or its trust funds (the obligee) that the employer will pay wages and make the health, pension, vacation, and other fund contributions the collective bargaining agreement requires. If the employer does not pay, the union or fund files a claim. The surety pays valid claims and recovers from the employer.

Who needs it

• Union contractors and subcontractors
• Employers signing a collective bargaining agreement
• Out-of-area contractors working with a local union

What the underwriter looks at

• Size of payroll and benefit contributions
• Personal and business credit
• Business financial statements
• Contribution payment history

Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.

Common questions