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Illinois Wage and Fringe Benefit Bond

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Architectural Iron Workers Union Local No. 63 – Wage Welfare Bond
Cement Masons’ Union Local No. 502 – Wages and Fringe Benefits ($25,000) Bond
Ceramic Tile Terrazzo and Granite Cutters Union Local No. 21 – Wage and Welfare Bond
Chicago Journeymen Plumbers’ Local Union No. 130 – Wage Welfare Bond
Chicago Regional Council of Carpenters – Wage & Fringe Benefit Bond
Chicago and Northeast Illinois District Council Of Carpenters – Wage and Fringe Benefit Bond
General Laborers District Council of Chicago – Wage and Welfare Bond
Glaziers Union Local No. 27 – Wage Welfare ($25,000) Bond
Great Plains Laborers’ District Council (Locals 32 and 727) – Wage and Fringe Benefits ($50,000) Bond
Heat and Frost Insulators Local No. 17 – Wage and Fringe Benefits Bond
IBEW Local No. 34 – Wage, Fringe Benefit and Payroll Deduction Bond
IBEW Local No. 601 – Wage and Welfare Bond
IBEW Local No. 117 – Wage and Fringe Benefits ($50,000) Bond
IBEW Local No. 134 – Employer’s Fringe Benefits $70,000 (1 to 5 Employees) Bond
IBEW Local No. 134 – Employer’s Fringe Benefits $140,000 (6 to 10 Employees) Bond
IBEW Local No. 134 – Employer’s Wage ($50,000) (1 to 5 Employees) Bond
IBEW Local No. 134 – Employer’s Wage ($100,000) (6 to 10 Employees) Bond
IBEW Local No. 150 – Wage and Fringe Benefit ($50,000) Bond
IBEW Local No. 176 – Wage and Welfare Bond
IBEW Local No. 196 – Wage and Union Dues ($50,000) Bond
IBEW Local No. 309 – Wage and Fringe Benefits Bond
Illinois Painters District Council No. 58 – Wage and Fringe Benefits Bond
Journeymen Plasterers Cement Masons Local No. 362 – Wage and Welfare Bond
Laborers Int’l Union Of North America Union Nos. 149, 582, 1035 – Wage and Welfare Bond
Local Unions Nos. 21 and 52 – Employer’s Wage and Welfare Bond
Local Union No. 23 Plumbing and Pipefitting Industry – Wage Welfare Bond
Mid-America Carpenters Regional Council – Wage & Fringe Benefit Bond
Operative Plasters and Cement Masons Local Union No. 90 – Wage & Fringe Benefits ($25,000) Bond
Painters District Council No. 14 – Wage and Welfare Bond
Painters District Council No. 30 – Wage and Welfare Bond
Pipe Fitters Local No. 597 – Wage and Welfare Bond
Sheet Metal Workers Union Local No. 73 – Wage and Welfare Bond
Sprinkler Fitters Local No. 281 – Wage and Fringe Benefits Bond
United Union of Roofers, Waterproofers and Allied Workers, Local No. 11 – Wage and Fringe Benefits Bond

Introduction

Illinois Wage and Fringe Benefit requirements are part of union agreements designed to ensure that contractors and employers pay agreed-upon wages, pension contributions, health benefits, and other negotiated labor costs to union workers. These obligations are typically secured by a Wage and Fringe Benefit Bond, which protects union trust funds from financial losses if an employer fails to make required payments. The bond is commonly mandated by trade unions such as IBEW, Plumbers, or Carpenters before allowing contractors to operate under a collective bargaining agreement in Illinois.

A guy and a woman stand beside the van as trade workers.

Explanation: Illinois Wage and Fringe Benefit Bond

An Illinois Wage and Fringe Benefit Bond is a type of surety bond required to ensure that union employers in Illinois pay union workers their contractually agreed-upon wages, benefits, and contributions to trust funds. These bonds are typically required by labor unions such as the:

    • International Brotherhood of Electrical Workers (IBEW)

    • Laborers’ International Union of North America (LIUNA)

    • United Brotherhood of Carpenters (UBC), among others

Purpose of the Bond

The bond guarantees payment of:

    • Wages to union workers

    • Fringe benefits (e.g., health insurance, pensions, training funds)

    • Deductions owed to union trust funds or benefit plans

If the employer fails to make these payments, the union or trust fund may file a claim against the bond to recover the unpaid amounts.

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Who Needs It?

Union contractors working on:

    • Public or private construction projects

    • Collective bargaining agreements that require a bond as part of their contract with the union

The bond is often a prerequisite for union approval, especially for new or non-signatory contractors.

Parties to the Bond

  1. Principal – The union contractor/employer
  2. Obligee – The union, trust fund, or benefit plan (e.g., IBEW Local 134)
  3. Surety – The licensed surety company that guarantees payment

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Step-by-Step Application Process

Here’s a clear and well-organized guide on the application process for obtaining an Illinois Wage and Fringe Benefit Bond, commonly required by unions such as the IBEW:

1. Confirm Bond Requirement

  • Unions like IBEW Local 117, 134, 150, and others require a Wage and Fringe Benefit Bond before you can hire union labor in their jurisdiction.

  • The bond amount is set by the specific union—commonly $50,000 but varies by local and number of employees.

2. Identify the Bond Amount

  • Review your Collective Bargaining Agreement (CBA) to confirm the exact bond requirement.

  • Example: IBEW Local 117 typically requires a $50,000 bond.

3. Choose a Surety Bond Provider

  • Contact a licensed surety broker (e.g. Swiftbonds).

  • Obtain a bond application and instructions, often through online platforms.

4. Underwriting & Premium Quotation

  • The surety reviews your financial standing, credit, and risk level.

  • Premiums typically range from % of the bond amount based on underwriting factors.

5. Approval and Bond Issuance

  • Once approved, you pay the premium.

  • The surety issues your bond with original signatures and Power of Attorney to the union.

Conclusion

The Illinois Wage and Fringe Benefit Bond serves as a crucial financial guarantee ensuring that union contractors meet their contractual obligations to pay wages and benefits. It protects union trust funds and workers, supports compliance with collective bargaining agreements, and promotes accountability within Illinois’ unionized labor sectors.

See our Illinois Preferred Provider Program Administrator Bond.

A young employer with a briefcase walks in front of his team.

Frequently Asked Questions (FAQs)

Here are Frequently Asked Questions (FAQs) regarding the Illinois Wage and Fringe Benefit Bond:

What happens if the contractor fails to pay benefits?

If the contractor defaults, the union or trust fund can file a claim against the bond. The surety will investigate and may compensate the trust up to the bond’s full value.

How long is the bond valid?

Typically, the bond remains in effect for one year and must be renewed annually for ongoing union projects or until released by the union.

Can I get this bond with bad credit?

Yes, but it may come with a higher premium or additional underwriting requirements. Specialized sureties offer bonds to higher-risk applicants.

How long does it take to get the bond?

In most cases, once all documents are submitted, approval and issuance can take 1–3 business days.

Does this bond protect the contractor?

No. The bond protects the union benefit funds and employees, not the contractor. The contractor remains responsible for repaying any claim the surety pays.

Read our City of Aurora, IL – General Excavating / Paving / Concrete Bond.