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Ohio Wage and Welfare Bond

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Bricklayers and Allied Craftworkers Local 23 OH-WV-KY – Wage and Welfare ($50,000) Bond
Heat and Frost Insulators Local 84 – Fringe Benefits Bond
IBEW Local No. 8 – Fringe Benefits Bond
IBEW Local No. 212 – Fringe Benefits Bond
IBEW Local No. 212 – Wage Bond
IBEW Local No. 306 – Wage and Fringe Benefits Bond
IBEW Local No. 38 – Wage Welfare Bond
IBEW Local No. 972 – Wage and Fringe Benefits Bond
International Union of Operating Engineers, Local No. 18 – Fringe Benefits Bond
Iron Workers District Council of Southern Ohio – Fringe Benefits ($20,000) Bond
Laborers’ District Council of Ohio Local No. 894 – Wage and Welfare Bond
Local Union No. 396 Plumbing and Pipefitting – Wage Welfare ($75,000) Bond
Northern Ohio LMC, Inc. – Wage and Fringe Benefits Bond
Northwest Ohio Plumbers & Pipefitters Local Union 50 – Wage & Welfare Bond
Ohio Carpenters Fringe Benefits Funds – Fringe Benefit Bond
Ohio Kentucky Administrative District Council – Employers Wage Expense, Welfare, Pension ($25,000) Bond
Painters District Council No. 6 – Wage and Welfare Bond
Pipefitters Local Union No. 120 – Wages and Fringe Benefits Bond – MAIL
Plumber’s Local No. 55 – Wage and Fringe Benefits Bond
Plumbers and Pipefitters Local No. 189 – Fringe Benefits (16-20 employees) 0,000 Bond
Plumbers and Pipefitters Local No. 189 – Wage (16-20 employees) $50,000 Bond

Introduction

The Ohio Wage and Welfare Bond is designed to protect employees and labor organizations by ensuring that employers fulfill their financial obligations under collective bargaining agreements (CBAs). It guarantees timely payment of wages, health benefits, pension contributions, and other union-related obligations, promoting fair labor practices and accountability within Ohio’s workforce.

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Explanation: Ohio Wage and Welfare Bond

In order to guarantee that employers, especially contractors, appropriately pay employee wages, benefits, and union contributions as specified in collective bargaining agreements (CBAs), some labor unions, trade associations, or fringe benefit funds require the Ohio Wage and Welfare Bond, a type of surety bond.

This bond ensures that the business will pay all wages, health and welfare benefits, pension contributions, and apprenticeship fund payments, among other financial commitments pertaining to employee compensation. The bond offers financial security in the event that an employer defaults on these duties by paying the impacted union or fund the outstanding balances.

In essence, the Ohio Wage and Welfare Bond promotes fair labor practices and ensures compliance with contractual and statutory requirements under Ohio labor laws. It is commonly required in unionized industries such as construction, electrical, plumbing, and manufacturing, helping maintain trust between employers, employees, and labor organizations.

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Key Points of the Ohio Wage and Welfare Bond

  • Purpose: Ensures employers pay all required wages, fringe benefits, and union contributions as outlined in collective bargaining agreements (CBAs).

  • Who Requires It: Typically required by labor unions, trade associations, or employee benefit funds for contractors and employers participating in unionized work.

  • Regulating Authority: Overseen by the specific union or trust fund that mandates the bond; not issued by a state agency.

  • Parties Involved:

    • Principal: The employer or contractor required to post the bond.

    • Obligee: The union, labor organization, or benefit fund.

    • Surety: The bonding company guaranteeing payment compliance.

  • When It’s Needed: Before the employer can begin work under a union contract or participate in a collective bargaining agreement.

See our Ohio Short-Term Lender License – NMLS Bond.

Process of Getting the Ohio Wage and Welfare Bond

  1. Confirm Bond Requirement

    • Contact the specific labor union, trade organization, or benefit fund to determine if a Wage and Welfare Bond is required.

    • Verify the bond amount, obligee name, and bond form specified in the collective bargaining agreement (CBA).

  2. Choose a Licensed Surety Company
  3. Complete the Bond Application

    • Provide business details, ownership information, employer identification number (EIN), and financial documentation.

    • The surety may request credit reports or financial statements to assess risk.

  4. Underwriting and Risk Evaluation

    • The surety reviews the applicant’s financial condition, creditworthiness, and experience to determine eligibility and premium rate.

  5. Receive the Bond Quote

    • Based on risk assessment, the surety issues a quote—usually % of the total bond amount annually.

    • Applicants with strong credit and financial history typically pay a lower premium.

  6. Pay the Premium and Execute the Bond

    • Once approved, pay the quoted premium to activate the bond.

    • The surety then issues the original Ohio Wage and Welfare Bond, naming the correct union or fund as the obligee.

Conclusion

To protect workers’ rights and guarantee business accountability, the Ohio Wage and Welfare Bond is essential. It promotes just and moral employment practices throughout Ohio and builds confidence between employers and labor groups by ensuring the payment of wages and benefits due under union agreements.

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Frequently Asked Questions (FAQs)

Here are some frequently asked questions about the Ohio Wage and Welfare Bond:

Can non-union employers be required to post this bond?

Usually no. This bond is specific to unionized employers working under formal collective bargaining agreements.

Can the bond amount change over time?

Yes. The obligee (union or fund) may adjust the bond amount if the employer’s workforce, payroll, or benefit obligations increase.

Is the bond refundable?

No. The bond premium is non-refundable, as it serves as a fee for the surety’s financial guarantee during the bond term.

How are bond claims handled?

When a claim is filed, the surety investigates its validity. If confirmed, the surety pays the claim amount to the union or benefit fund and seeks reimbursement from the employer.

What are the benefits of maintaining an active Wage and Welfare Bond?

It allows employers to maintain good standing with unions, ensures uninterrupted project eligibility, and demonstrates financial responsibility and compliance with Ohio labor standards.

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