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Introduction
From our perspective, any employer or contractor in Illinois working with IBEW Local No. 117 must secure the IBEW Local No. 117 - Wage and Fringe Benefits ($50,000) Bond before hiring union workers.
This bond guarantees that wages, benefits, and contributions outlined in the collective bargaining agreement will be paid. If an employer fails to meet these obligations, the bond serves as a financial safeguard for union workers, ensuring they receive what they are owed.
Employers who fail to obtain this bond risk legal action, project delays, and financial penalties. Securing this bond demonstrates a commitment to fair labor practices and prevents unnecessary disputes.
Additionally, contractors working on infrastructure projects in Will County, IL must meet specific bonding requirements, including the Will County, IL - Highway Right of Way Performance Bond. This bond is often required alongside wage and benefit bonds to ensure roadwork projects meet local regulations and financial guarantees.
Common Misunderstandings About This Bond
We’ve noticed that some employers misinterpret how this bond works. Here are a few common misconceptions:
- "This bond protects my business." – This bond protects union workers by ensuring they receive wages and benefits. It does not provide coverage for the employer.
- "I only need this bond for large projects." – Any employer working with IBEW Local No. 117 must have this bond, no matter the project size.
- "Once I purchase the bond, I don’t have to think about it again." – Employers must keep the bond active to remain compliant with union agreements.
Misunderstanding these requirements can lead to costly mistakes. A clear understanding prevents compliance issues and financial risks.
How This Bond Works
Based on our experience, the IBEW Local No. 117 - Wage and Fringe Benefits ($50,000) Bond involves three main parties:
- The Employer (Principal) – The company responsible for making payments to union workers.
- IBEW Local No. 117 (Obligee) – The union requiring the bond to protect its members.
- The Surety Company – The provider of the bond that guarantees payment if the employer fails to meet its obligations.
If an employer does not pay wages or benefits, the union may file a claim against the bond. The surety company may cover the unpaid amounts, but the employer must repay the surety for any claims paid.
This system ensures fair compensation for workers while holding employers accountable.
Steps to Obtain This Bond
What we’ve discovered is that securing this bond is a simple process when working with Swiftbonds. The steps include:
- Determine the bond amount – IBEW Local No. 117 requires a $50,000 bond, but specific requirements may vary.
- Submit an application – Employers need to provide business details, financial records, and payroll estimates.
- Receive a quote – Bond pricing depends on credit history and financial stability.
- Pay the bond premium – Once approved, the employer completes the purchase.
- File the bond with IBEW Local No. 117 – The bond must be submitted before hiring union workers.
Swiftbonds offers quick approvals, competitive rates, and expert support, making the process efficient and stress-free.
For businesses that manage self-insured workers’ compensation plans, obtaining an Illinois - Self-Insurer's Workers' Compensation Bond is another essential requirement. This bond ensures that injured workers receive compensation if an employer is unable to meet its financial obligations under state law.
What Happens If an Employer Does Not Obtain This Bond?
In our observation, failing to secure this bond creates serious risks:
- Legal action from IBEW Local No. 117
- Project delays due to non-compliance
- Financial penalties for violating union agreements
- Loss of credibility and business opportunities
By obtaining this bond, employers protect their reputation, maintain compliance, and build trust with the union.
Benefits of This Bond
We’ve learned that this bond provides several key advantages, including:
- Authorization to work with IBEW Local No. 117
- Financial protection for union workers
- A streamlined process for wage and benefit compliance
- Increased credibility in the industry
Employers can avoid unnecessary disputes and focus on project success.
Conclusion
The IBEW Local No. 117 - Wage and Fringe Benefits ($50,000) Bond is a critical requirement for employers hiring union workers.
By securing this bond through Swiftbonds, businesses stay compliant, avoid penalties, and build trust with the union.
Frequently Asked Questions
Who needs this bond?
Any employer hiring workers from IBEW Local No. 117 must obtain this bond before starting a project.
How much does this bond cost?
The bond premium is a percentage of the $50,000 bond amount, which varies based on credit history and financial standing.
What happens if an employer does not pay union wages and benefits?
If an employer fails to meet payroll or benefit obligations, IBEW Local No. 117 may file a claim against the bond. The surety company may cover unpaid amounts, but the employer must reimburse the surety.
Does this bond need to be renewed?
Yes. The bond must remain active for as long as the employer works with union labor. Renewals may be annual or per contract period.
Can employers with bad credit still get this bond?
Yes. Swiftbonds provides affordable options for all credit levels.
How quickly can this bond be issued?
Most bonds are approved within 24 hours, allowing employers to meet deadlines without delays.