Plumbing and Pipefitting Industry UA Local 38 Wage and Welfare Bond

Business owners are required by the State of California to file for a Wage and Welfare Bond with the United Association Local 38 when hiring pipe-trade workers. This is considered a type of financial guarantee that the Principal (business) pays union dues for services by its members, honors payments, and provides compensations to employees.

What is a Wage and Welfare Bond?

A union will normally guarantee the protection of its members by requiring a wage and welfare surety bond from employers. This bond guarantees that the companies that contract services with their members will duly comply with their payments, obligatory contributions, and other benefits packages. This bond is required before companies can hire members of a union, and will normally entail a collective bargain process prior to the commencement of work.

What is the Plumbing and Pipefitting Industry UA Local 38 Wage and Welfare Bond?

The United Association (UA) Local 38 is a non-profit organization that incorporated organized pipe-trade workers in North America. The Wage and Welfare Bond protects members of the union in case a company fails to meet standards, guaranteeing that the Principal (company or business owner) pays union dues and provide appropriate compensation for its employees.

How does it work?

The bond must be filed with the UA Local 38 and must be issued by a surety bond provider certified by the Department of Insurance of California. The parties in the agreement are the Principal (permit applicant), Obligee (UA Local 38), and Surety/Bond Company or Obligor (surety bond provider or insurance).

The Surety Company will guarantee the compensation (performance bond) of the Obligee should the Principal fail to meet their payments (union dues) or violate other licensing provisions. In such cases, the union can file a claim to collect its dues. The Surety Company will assess the validity of claims, where claims may only amount to the total penal sum agreed upon in the bond form. The Principal shall reimburse all expenses covered by the Surety Company.

The Bond Company is secured through an indemnity agreement as the licensed business is mandated by law for the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond and shall ascertain the business's responsibility for their dealings.

How much does it cost?

Depending on the applicant or business owner’s experience, credit score, and license history, the Plumbing and Pipefitting Industry UA Local 38 Wage and Welfare Bond may cost between 2% and 7.5% of the total bond amount.

Want to know your standing? Visit here and get your surety bond quote today!

How can I apply for this bond?

At Surety Bond Authority, we are dedicated to helping you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.

To secure your wage and welfare bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.

In the assessment phase, our underwriter will need the following information:

  • Nature of your profession or business
  • Credit score
  • Financial strength

For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.

Bond Issuance
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time!

Plumbing and Pipefitting Industry UA Local 38 Wage and Welfare Bond

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