Resilient Floor and Decorative Covering Local Union #1247 Wage and Welfare Bond - $5,000
Business owners are required by the State of California to file for a Wage and Welfare Bond amounting to $5,000 with the Resilient Floor and Decorative Covering Local Union 1247 when hiring carpet installers. This is considered a type of financial guarantee that the Principal (business) will pay union dues for services by its members, honors payments, and provide 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 before the commencement of work.
What is the Resilient Floor and Decorative Local Union 1247 Wage and Welfare Bond?
The Resilient Floor and Decorative Local Union 1247 is a non-profit organization that caters to professional carpet installers. The Wage and Welfare Bond protects members of the union in case a company fails to meet standards, guaranteeing that the Principal (company) pays union dues and provide appropriate compensation for its employees.
How does it work?
The bond must be filed with the Resilient Floor and Decorative Local Union 1247 and must be issued by a surety bond provider certified by California’s Department of Insurance. The parties in the agreement are the Principal (business), Obligee (Resilient Floor and Decorative Local Union 1247), and Surety/Bond Company or Obligor (surety bond provider or insurance).
The Obligor 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 Obligor 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 Obligor.
The Obligor 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 business owner’s experience, credit score, and license history, the Resilient Floor and Decorative Covering Local Union 1247 Wage and Welfare Bond may cost between $100 and $375.
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 business
- Credit score
- Financial strength
For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.
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!