Union Wage & Welfare Bond

Union Wage & Welfare Bond Information

The union bond is another name for a wage and welfare bond, and is considered a financial guarantee commercial surety bond. The bond ensures an employer's contribution to welfare funds, including payment of wages. It is required by unions whenever an employer has hired employees whom а union represents. The union wage and welfare bond protects employees in the way that if their employer should fail to comply with their obligations as stated in the bond, a claim against the bond can be filed. This bond is considered a risk, due to the nature of a financial guarantee, and therefore commands higher rates than the average bond. Typically, if you have poor credit, or are new and have no credit, you’ll have a difficult time obtaining the wage and welfare bond. But through our bad credit program, you can still get bonded under certain circumstances.

Listed below are the 3 absolutes in surety.

  • Most be a US Citizen
  • Cannot be in current bankruptcy
  • Cannot be behind in child support

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Three party agreement

Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.

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