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Introduction
From our perspective, contractors working on glazing projects in Illinois must meet strict financial obligations, including ensuring that union wages and benefits are properly distributed. The Glaziers Union Local No. 27 - Wage Welfare ($25,000) Bond serves as a financial guarantee that contractors will fulfill their obligations to workers regarding wages, fringe benefits, and other contractual commitments.
This bond is a requirement for employers hiring union glaziers to perform work in Chicago and surrounding areas. It ensures that workers receive fair compensation and benefits, reducing financial risk for the union and its members.
Contractors may also need additional bonding for different types of work, such as:
- City of Marion, IL - Electrical Contractor ($20,000) Bond – For licensed electrical contractors.
- Village of Mokena, IL - Contractor License ($10,000) Bond – Required for general construction work in Mokena.
Understanding the importance of this bond is critical for contractors looking to work legally, maintain good standing with the union, and protect their business reputation.
Misconceptions About Wage Welfare Bonds
We’ve noticed that many contractors believe that a wage welfare bond protects them in the event of a dispute. However, this bond is not insurance for the employer—it is a guarantee to the union that wages and benefits will be paid as agreed.
If a contractor fails to meet payment obligations, the union or affected workers can file a claim against the bond to recover unpaid wages or benefits. The surety company may pay the claim but will require the contractor to reimburse the full amount.
Common misunderstandings include:
✔ Assuming the bond covers all financial issues – It only applies to wages and benefits owed to union workers.
✔ Thinking it replaces payroll obligations – Contractors must still pay employees and benefits on time.
✔ Believing it is optional – Contractors must have this bond to work with Glaziers Union Local No. 27.
Legal Basis for Wage Welfare Bonds in Illinois
Based on our experience, the requirement for wage welfare bonds comes from Illinois labor laws and union agreements that protect workers from non-payment or financial mismanagement. The key legal frameworks include:
- Illinois Wage Payment and Collection Act (820 ILCS 115/1) – Ensures workers receive wages and benefits as agreed.
- Illinois Little Miller Act (30 ILCS 550/1-3) – Requires bonding for public construction projects.
- Illinois Department of Labor Rules – Governs wage and benefit compliance for contractors working with unions.
Failure to comply with bonding and wage laws can lead to financial penalties, loss of licensing, and legal action.
How This Bond Works: A Three-Party Agreement
What we’ve discovered is that this bond involves three main parties:
- The Principal – The contractor who must obtain the bond.
- The Obligee – Glaziers Union Local No. 27, which requires the bond for worker protection.
- The Surety – The bond company that guarantees wage and benefit compliance.
If a contractor fails to meet payroll obligations, a claim can be made against the bond. If the surety company pays the claim, the contractor is responsible for full reimbursement.
How to Obtain the Glaziers Union Local No. 27 - Wage Welfare Bond
What we’ve discovered is that obtaining this bond follows a structured process:
- Confirm the bond amount – The union requires a $25,000 bond for contractors working with its members.
- Submit a bond application – Contractors provide business details, financial history, and proof of compliance.
- Undergo a financial review – The surety company evaluates credit history and financial strength.
- Receive a bond quote and pay the premium – The cost depends on credit and risk factors.
- Provide proof of bonding to the union – Contractors must submit the bond before starting work.
Contractors who fail to maintain an active bond risk legal and financial penalties, including contract termination.
Consequences of Working Without This Bond
In our observation, working without a Glaziers Union Local No. 27 - Wage Welfare Bond exposes contractors to serious risks:
- Union contract violations – Contractors may lose the ability to work with union labor.
- Legal action from the union or workers – Unpaid wages or benefits can lead to lawsuits.
- Financial claims against the business – The union can file claims for unpaid contributions.
- License suspension or business closure – Contractors operating without the required bond may face state enforcement actions.
Benefits of Securing This Bond
We’ve learned that securing this bond provides several advantages:
✔ Compliance with union agreements – Ensures adherence to union labor requirements.
✔ Prevents legal disputes – Reduces the risk of lawsuits over unpaid wages.
✔ Strengthens business reputation – Shows financial responsibility and commitment to fair labor practices.
✔ Ensures eligibility for union contracts – Allows contractors to bid on union projects.
By securing this bond, contractors can protect their business, stay compliant with union agreements, and build trust with workers.
Conclusion
We’ve come to appreciate that the Glaziers Union Local No. 27 - Wage Welfare ($25,000) Bond is an important requirement for contractors employing union glaziers. This bond ensures fair compensation, protects workers, and maintains financial accountability in the construction industry.
Failing to secure this bond can result in legal action, financial losses, and the inability to work with union labor. Contractors must follow Illinois labor laws and union agreements to maintain a strong and reputable business.
Swiftbonds offers fast approvals, competitive pricing, and expert guidance to help contractors obtain the required bonds quickly and efficiently.
Frequently Asked Questions
Who needs this bond?
Contractors hiring workers under Glaziers Union Local No. 27 must obtain this bond to meet union contract requirements.
How much does this bond cost?
Bond costs depend on financial history, credit score, and risk factors. Typically, contractors pay a percentage of the $25,000 bond amount annually.
Can a contractor work without this bond?
No. Contractors without this bond cannot legally hire union glaziers and may face legal action or contract termination.
How long does it take to obtain the bond?
Most applications are approved within 24 hours, especially when working with Swiftbonds.
Does this bond protect contractors from liability?
No. This bond only protects workers and the union—contractors must repay any claims made against the bond.
Are additional bonds required for contractors in Illinois?
Yes. Depending on the project, contractors may also need:
- City of Marion, IL - Electrical Contractor ($20,000) Bond – Required for electrical work in Marion.
- Village of Mokena, IL - Contractor License ($10,000) Bond – For general construction work in Mokena.