What is a Wisconsin Wages and Fringe Benefits Bond?
The State of Wisconsin requires organizations that use union labor when negotiating collective bargain agreements to post a surety bond.
The Wage and Fringe Benefits Bond guarantees to the union that the earned wages and fringe benefits by laborers will be paid in line with the contract between the union and the organization that employs union members as labor.
The bond is also referred to as Wage and Welfare Bond, Union Bond, or Wage and Fund Bond. It simply ensures that all hourly wages, commissions, dues, and fringe benefits (sick or vacation pay) will be paid as specified in written contracts or policies for hired union labor by respective employers of union members.
What are the bond conditions?
- The selected Surety Company must be licensed and authorized to issue surety bonds in the State of Wisconsin.
- The Principal must comply with all the provisions, rules, and regulations as applicable in the state.
- If the Principal (union member company) fails to fulfill its obligations under the bond’s terms, the bond amount can be used to pay claims for salary, wages, fringe benefits, and compensation for services rendered by employees represented by the union.
- Each wage and welfare bond is specific depending on the union that requires it.
What is the bond amount?
The bond amount is determined by the union member company that needs bond coverage. Since the bond acts as a long-term financial guarantee, they are quite risky for surety underwriters and may require that applicants post collateral.
The cost of the bond is a percentage (bond premium) of the bond amount. The bond cost may range from 1% to 5%, depending on the credit score and financial standing of the applicant.
To get an estimate of your bond costs, click HERE to get your FREE quote!
How do I obtain a Wages and Fringe Benefit Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few important information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
To avoid any delays, make sure that you have gathered the right information needed before submitting.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!