Maryland Wage and Welfare Bond

Get An Maryland Wage and Welfare Bond Now

Asbestos Workers Local No. 24 – Fringe Benefits Bond
IBEW Local No. 24 – Wages and Dues Bond
IBEW Local No. 26 – Fringe Benefit Payment Bond
IBEW Local No. 26 – Wage and Welfare ($50,000) Bond
International Association of Heat and Frost Insulators – Wage and Welfare ($100,000) Bond
Int’l Assoc. of Bridge, Structural & Ornamental Iron Workers Local No. 5 – Fringe Benefits Bond
International Union of Elevator Constructors – Wage and Fringe Benefits Bond
International Union of Painters and Allied Trades – Wage and Fringe Benefits ($50,000) Bond
Maryland Electrical Industry Funds – Fringe Benefits Bond
Operating Engineers Local No. 77 – Fringe Benefits Bond
Plumbers Local No. 5 – Wage and Fringe Benefits Bond
Road Sprinkler Fitters Local Union No. 669 – Wage and Fringe Benefits ($25,000) Bond
Road Sprinkler Fitters Local Union No. 669 – Wage and Fringe Benefits ($50,000) Bond
Road Sprinkler Fitters Local Union No. 669 – Wage and Fringe Benefits ($100,000) Bond
Steamship Trade Association of Baltimore – Fringe Benefits Bond

Introduction

The Maryland Wage and Welfare Bond is a surety bond often required by labor unions or employee benefit funds to ensure that employers meet their obligations under collective bargaining agreements. It guarantees payment of union wages, dues, and contributions to employee benefit plans such as health, pension, vacation, or training funds, protecting workers and unions from financial loss due to employer default.

Explanation: Maryland Wage and Welfare Bond

A Maryland Wage and Welfare Bond is a type of surety bond typically required by labor unions or employee benefit funds in Maryland. It ensures that employers, particularly those with collective bargaining agreements, properly pay union dues, wages, and employee benefit contributions such as health, pension, vacation, or training funds.

This bond acts as a monetary assurance that the employer will carry out these duties under the contract. The union or trust fund may issue a claim on the bond to recoup unpaid sums if the employer defaults on due payments. Although the surety will pursue recovery from the employer, it covers legitimate claims.

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Key Points About the Maryland Wage and Welfare Bond

Purpose: Guarantees that employers pay union wages, dues, and employee benefit contributions as required under labor agreements.
Required By: Labor unions, employee benefit funds, or trustees (not a state agency directly).
Parties Involved:
- Principal: The employer required to post the bond.
- Obligee: The union, trust fund, or welfare fund entitled to payment.
- Surety: The bonding company guaranteeing payment.
Protection: Covers unpaid wages, dues, and benefit contributions owed to employees and union funds.
Claims: If the employer defaults, the bond provides financial recourse for employees or unions.

Who Needs a Maryland Wage and Welfare Bond?

Employers with unionized workforces under collective bargaining agreements.
Contractors and businesses required by unions to guarantee payment of wages and benefits.
Employers participating in union trust funds for pensions, health, training, or vacation plans.

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Process of Getting a Maryland Wage and Welfare Bond

Here’s a detailed process for obtaining a Maryland Wage and Welfare Bond:

Review Union or Trust Fund Requirements
- Confirm with the union, employee benefit fund, or welfare trust the exact bond amount and terms required under the collective bargaining agreement.
Choose a Licensed Surety Bond Provider
- Work with a surety bond company authorized to issue bonds in Maryland.
Complete the Bond Application
- Provide employer details, business structure, financial information, and details of the labor agreement.
- A credit check and possibly business financials will be required.
Underwriting Review
- The surety company evaluates the employer’s financial stability, creditworthiness, and ability to fulfill wage and welfare obligations.
- Stronger credit and financials typically mean lower premiums.
Receive Bond Quote and Pay Premium
- Premiums are generally % of the bond amount, depending on the employer’s risk profile.
- Pay the premium to activate coverage.
Bond Issuance
- The surety prepares the official bond document.
- Submit the bond directly to the union, trust fund, or employee benefit plan administrator as proof of compliance.

Conclusion

The Maryland Wage and Welfare Bond is an important financial safeguard that protects employees, unions, and benefit funds by ensuring employers meet their contractual wage and contribution obligations. By maintaining this bond, employers demonstrate reliability, compliance, and a commitment to fair labor practices.

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Frequently Asked Questions (FAQs)

Here’s a Frequently Asked Questions (FAQ) section for the Maryland Wage and Welfare Bond:

Can employers with poor credit still get this bond?

Yes, but they may face higher premiums or need to provide additional financial documents or collateral to secure approval.

What happens if the bond is not renewed?

Failure to renew or maintain the bond can lead to violations of the collective bargaining agreement, union disputes, work stoppages, or possible suspension of contracts.

Can an employer transfer the bond to another union or fund?

No. Bonds are issued for a specific union or benefit fund and cannot be transferred. A new bond must be obtained if working with another union or fund that requires one.

Who files a claim against the bond?

Claims are typically filed by the union, trustees of the welfare fund, or employee benefit administrators if the employer fails to make required payments.

What is covered by a bond claim?

Unpaid union dues, wages, health fund contributions, pension contributions, vacation pay, apprenticeship or training fund contributions, and other union-related benefits.

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