Unions that speak for carpenters in Ohio can request the filing of a surety bond by a contractor to secure the payment of wages and welfare benefits. Jet Insurance Company offers the Carpenters’ Wage and Welfare Bond as a guarantee that should the contractor or other employer fail to supply payment, the bond will disburse funds. Anyone who hires carpenters, cabinetmakers, floor coverers, interior systems specialists, lathers, millworkers, millwrights, pile drivers, or residential and framing contractors may need this bond if the worker is unionized.
Carpenters are secured under the protection of unions, such as the Indiana Kentucky Ohio Regional Council of Carpenters (IKORCC) and its local unions. By requiring this bond, also known as the Fringe Benefit Bond, the union shows that it cares about keeping its members' livelihood intact.
The cost of a Carpenter’s Wage and Welfare Bond starts at $250 with Jet but is dependent on credit standing and the amount required for the bond. If a limit is particularly high, a review of business and personal financials may be needed. The chart below shows possible limits with rates for an applicant with preferred credit.
The bond limit is given by the union in an amount that would be able to cover the wages or contributions in the event that the employer doesn’t complete payment. Limits will be determined in the Collective Bargaining Agreement.
Applying with Jet is as easy as it gets! Our online application will only ask for the information that is needed. Among this is a social security number, which must be used for the soft credit check. In a few minutes, you will either be approved for a rate and be able to purchase your bond or, for bond limits that are over $10,000, your application will be submitted for review. If any additional information is needed, one of our team members will reach out to you; otherwise, you will receive your emailed quote when the review is finished.
Jet can file your Carpenters Wage and Welfare Bond for you, but if you would like to file it yourself (perhaps with other paperwork), you can choose that option when buying your bond. The original bond must be submitted to the address below:
IN KY OH Regional Council of Carpenters
771 Greenwood Springs Dr
Greenwood, IN 46143
As long as you have unionized carpenters working for you, you need an active bond. Jet will send you a renewal notice through mail and email, and it only takes a couple of minutes to fill it out and pay for the next term. If you no longer need the bond, send Jet an email to [email protected] and we will contact the union to begin the cancellation process. Usually, this takes about 30 days. After the cancellation is complete, Jet will calculate a refund for any unused time left.
A contractor who holds a Carpenters’ Wage and Welfare Bond is bound to pay carpenters their wages and pay into the fringe benefit funds, as indicated in the Collective Bargaining Agreement. Should the contractor make an incomplete payment or is missing a payment altogether, disciplinary action may be taken, including recovery from the bond. The missing payment will be brought to your attention by notice or Jet will receive evidence showing the missing payment; you will have 10 days to remedy the missing payment before action is taken on the bond.
If you still fail to make the payment, Jet must pay the claim as an extension of your credit. Since you withheld payment in the first place and refused to comply after the complaint, you are responsible for paying Jet back.
It is possible that other unions operating in the State of Ohio may require a Wage and Welfare Bond for contractors to hire their members. Check out Jet's full list of Ohio Construction Bonds.