Wage bonds are mostly known as union or fringe benefit surety bonds.
This surety bond is required by employers who hire union members because the employer is contracted to meet specific obligations of the union's collective bargaining agreement.
A wage bond is a type of financial guarantee bond, which is a category of surety bonds.
Even if you're a company that is not on a unionized project but you hire union members you may have to purchase a wage bond for those specific employees so they can do the work you need them to perform.
Bottom line, a wage bond is purchased by an employer to guarantee appropriate wages and benefits to unionized workers.
If the employer purposefully neglects to fulfill the obligations, the union can make a claim against the bond for financial compensation for the work performed.
If the claim is deemed valid, it will payout and the employer is responsible for paying the insurance company that wrote the wage bond back the amount of the claim.
Wage bonds are not always for the protection of unionized workers. There are other niche scenarios where a wage bond might be required.
A good example is the New York nail salon wage bond.
Nail salon owners rent out the seats in their salon to stylists. The stylists are relying on the salon to collect all payments and ensure they are paid their share for work completed.
So the New York Department of State requires all licensed salons to purchase a wage bond.
While all wage bonds have the same purpose, the bond you need will require its own unique bond form.
So complete an online quote and tell us about your specific wage bond requirement. We'll be able to help you get the right form and fill it out correctly.
If you prefer, you can speak with a bond specialist at 1-800-608-9950.
You can get pricing for your wage bond today. Click the button below. You need to know the amount of your bond.
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
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