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Ohio IBEW Local Union Wage and Welfare Bonds
Ohio electrical contractors utilizing union labor will need to get an Ohio IBEW Local Union Wage and Welfare Bond. These bonds come in many different names as seen below for each location, but all serve the same purpose as a guarantee from Jet Insurance Company, a third-party surety company, to the union and its members that wages and dues will be paid even if a contractor neglects their responsibility to do so.
With Jet, you get the advantage of working directly with the underwriter who will service you from bond approval to bond filing. There are no middlemen involved which generally slows down and confuses what should be a simple process.
How Does Jet Determine the Cost of the Wage and Welfare Bond?
Jet's price for a wage and welfare bond is always a small percentage of the bond limit set by the IBEW Local Union. Our underwriters will factor in the personal credit and financial status of the contractor before approving the bond and setting the premium rate. For bond limits under $10,000, we can approve the bond automatically online.
| Bond Limit | Cost |
|---|---|
| $10,000 | $250 |
| $20,000 | $400 |
| $30,000 | $600 |
| $40,000 | $800 |
| $50,000 | $1,000 |
Above you can see where the Jet pricing starts for our preferred tier contractors. For businesses that have full-time union members, Jet may be able to offer a monthly bond rate after review. Be sure to request a monthly offer from our underwriter if you are interested.
Ohio IBEW Surety Bond Requirement per Local Union
The purpose of the bond is the same for each local union. Jet provides the financial guarantee for the contractor to the Local IBEW Union that wages are paid to the laborer and fringe benefits are paid to the local union. There are many cases where dues are sent to not only the local union but up the chain to other entities such as the International Brotherhood of Electrical Workers, National Electrical Contractors Association (NECA), the AFL-CIO, the Northern Ohio LMC, and others.
A wage guarantee for the laborer is one benefit of the surety bond, the other is much more diverse as the bond guarantees the dues to the union for their underlying benefits. Dues are paid for a variety of welfare and fringe benefits listed below and the surety bond guarantees them all, so long as they are the appropriate benefits the laborer is having deducted from their pay that the contractor submits directly.
- Pension and Annuity Funds
- Health, Dental, and Vision Benefits
- Joint Apprentice and Training Committee (JATC) Contributions
- Training Contribution
- Supplemental Unemployment
- Industry Fund Contributions
- Vacation Funds
Below is each local IBEW union in Ohio and how they vary from each other:
IBEW Local Union No. 8 Toledo, OH - The Contractor’s Employees Benefit Payment Bond is required of the approximately 125 local electrical contractors and outside contractors doing union jobs in the Toledo area. The bond has a 30-day cancellation period. The IBEW No. 8 bond is filed to the following address:
807 Lime City Rd.
Rossford, OH 43460
419-666-8920
https://www.ibew8.org/
IBEW Local Union No. 32 Lima, OH - The Bond by Contractor to Secure Payment of Fringe Benefits has a 14-day cancellation period. Contractors delinquent two times in a six-month period will be subject to a bond limit increase of 50%. The bond limit will follow the chart below so long as payments occur on time:
| Number of Union Laborers | Bond Limit |
|---|---|
| 1-5 employees | $15,000 |
| 6-10 employees | $25,000 |
| 11-25 employees | $50,000 |
| 26-50 employees | $100,000 |
| 51-75 employees | $150,000 |
| 76-100 employees | $200,000 |
| 101+ employees | $250,000 |
The IBEW No. 32 bond is filed to the following address:
1975 N West Street
Lima, OH 45801
419-229-2774
https://ibew32.com/
IBEW Local Union No. 38 Cleveland, OH - The Wage and Industry & Fringe Benefit Funds Payment Guaranty Bond is for current and future collective bargaining agreements for the guarantee of wage and fringe benefit related payments. There is a 2-year tail wherein a claim can be made for unpaid compensation. There is a 30-day cancellation period on the bond. The IBEW No. 38 bond is filed to the following address:
1590 E. 23rd St
Cleveland, OH 44114
216-621-3090
https://ibew38.org/
IBEW Local Union No. 64 Youngstown, OH - The Bond by Contractor to Secure Payment of Obligations Under a Collective Bargaining Agreement has coverage for the IBEW Local Union No. 64 and the AFL-CIO. There is a 60-day cancellation period on the bond. The IBEW No. 64 bond is filed to the following address:
350 Western Reserve Rd
Youngstown, OH 44514
330-758-8654
IBEW Local Union No. 129 Lorain, OH - The Bond by Contractor to Secure Payment of Wages and Welfare Benefits is needed by a dozen local contractors and any outside contractor doing work in the Lorain area. The bond limit is determined by the factors seen below:
| Number of Union Laborers | Bond Limit |
|---|---|
| 5 or fewer employees | $6,000 |
| 6-19 employees | $20,000 |
| 20+ employees | Negotiated Amount |
The bond has a 60-day cancellation provision and is filed to the No. 129 at the following location:
6100 S Broadway Suite 201
Lorain, OH 44053
440-233-7156
http://www.ibew129.org/
IBEW Local Union No. 212 Cincinnati, OH - The Employee Benefit Bond and Employee Wage Bond is required for about 70 contractors in the Cincinnati area and for out of towners hiring union members for work in the area. Jet has 15 days to make a payment following a valid claim from the Benefit Office to affected parties.
The bond limit starts at $1,000 for one union employee, $5,000 for 2-5 employees, and goes up from there. There is a 60-day cancellation provision on the bond. The original bond form is filed to the following address:
1216 East McMillan St Suite 204
Cincinnati, OH 45206
513-559-0200
http://www.local212.com/
IBEW Local Union No. 306 Akron, OH - The Bond by Contractor to Secure Payment of Deductions From Wages and Any and All Fringe Benefits is required for about 20 local contractors and any outside contractor doing work in the Akron area. A 30-day cancellation period is on the bond. The bond form is filed to the following address:
2650 S. Main St.
Akron, OH 44319-1883
330-245-2240
http://www.ibew306.org/
IBEW Local Union No. 540 Canton, OH - The Wage and Industry & Fringe Benefits Funds Payment Guaranty Bond has a two year period in which a claim can be made upon the bond by an unpaid laborer or union. There is a 30-day cancellation period on the bond. Not surprisingly, this local union has a sweet football logo. Original bonds are filed to the following location:
2333 Nave Rd SE
Massillon, OH 44646
330-837-4239
https://www.ibew540.org/
IBEW Local Union No. 573 Warren, OH - The Bond Guaranteeing Payment of Wages & Fringe Benefits may not have a bond requirement. The NECA may require a wage and welfare bond for contractors hiring IBEW union members in the Warren area. The local union is located at the following address:
4550 Research Parkway
Warren, OH 44483
330-394-3606
https://www.ibew573.org/
IBEW Local Union No. 575 Portsmouth, OH - The Bond by Contractor to Secure Payment of Wages, Dues, and Fringe Benefits has a bond limit that starts at $15,000 for 1-5 employees and goes up from there. There is a 60-day window from the time the paycheck was due for the laborer to make a claim for nonpayment of wages. Jet has 30 days to pay the claimant, if valid, whether it be the laborer or the union. At any time there are 20-30 bonds on file with the Local No. 575. The bond has a 30-day cancellation period. Original bond forms are filed to the following address:
110 Offnere St.
Portsmouth, OH 45662
740-353-8000
https://www.ibew575.org/
IBEW Local Union No. 673 Mentor, OH - The Bond by Contractor to Secure Payment of Wages and Welfare Benefits is required for around 30 contractors hiring IBEW members in the Mentor area. In an interesting twist, it is Jet’s responsibility to let Local No. 673 know if a default occurs on the part of the contractor in regards to laborer wages. The chart below details how the bond limit is set for the surety bond
| Number of Union Laborers | Bond Limit |
|---|---|
| 1-2 employees | $17,000 |
| 3-5 employees | $42,500 |
| 6-10 employees | $85,000 |
| 11-15 employees | $127,000 |
| 16-25 employees | $212,000 |
| 26-40 employees | $340,000 |
| 40+ employees | $340,000 + $8,500 for each additional employee |
This bond has a 30-day cancellation period. The bond is filed with the Local No. 673 at the following address:
8356 Munson Rd
Mentor, OH 44060
440-255-3414
https://ibew673.org/
IBEW Local Union No. 683 Columbus, OH - This Wage and Welfare bond is needed by about 70 contractors in the Columbus area. The union and its members can make a claim on the bond after the 15th of the month for defaulted wages and dues from the prior month. The bond has a 60-day cancellation period. The original bond form is filed at this address:
939 Goodale Blvd
Columbus, OH 43212
614-294-4786
https://www.ibew683.org/
IBEW Local Union No. 688 Mansfield, OH - The Local No. 688 is utilizing the same bond form and provisions as the Local No. 683 of Columbus, OH. The bond need, if required, is filed to the following address:
67 S. Walnut St
Mansfield, OH 44902
419-526-4688
https://ibew688.org/
How to Apply for the Ohio IBEW Wage and Welfare Bond With Jet
Click the button below to get started. Jet is going to need to know what bond limit is required and for which local union. Jet does base our rates on the personal credit of the contractor, so we will need a social security number of an owner to run a soft credit check.
For most bond amounts over $10,000, one of our underwriters will review the submission. To secure the best rate the underwriter may request personal and business financial statements.
Once the bond rate is ready we will contact you and deliver a link to pay online. The purchase takes seconds and you will instantly receive a copy of the bond and receipt.
How Does the Contractor Union Bond Get Filed to the Individual Local Unions?
Jet will deliver the completed bond directly to the local union at the address given above. If for some reason you want to file the bond yourself, just let us know at checkout and we will send the bond form to any address you desire.
What Happens if I Need to Cancel My IBEW Wage and Welfare Bond?
For signatory contractors with union members as full-time employees, a continuous bond can be purchased. These bonds can be cancelled by emailing [email protected]. Each local union has a different cancellation period as indicated above. This grace period keeps the bond active from the time the local union receives the cancellation notice from Jet. Once that period ends Jet can cancel the bond and return any unearned premium on a pro-rata basis.
For a bond required for an out of town contractor for a specific job requiring union labor the bond only lasts the length of the project and is not cancellable. Unless the project runs over a year, more on that below.
Do Wage and Welfare Bonds Need to Renew?
Once again this bond factor depends on the term of the wage and welfare bond needed by the contractor. Local signatory contractors will need to have the bond continuously in force and at the proper bond amount for the number of union laborers on staff.
This will require the contractor to update the bond amount to be sufficient enough to satiate the local unions’ bond limit needs. Before the bond’s term expires, Jet will send a renewal notice to confirm the bond limit and if nothing has significantly changed with employment numbers, the contractor can simply make the payment for the new bond term. If the bond limit has to be adjusted Jet will send a revised invoice for the decreased or increased bond premium amount.
For projects under a year, there is no need to worry about renewing the bond. Should the project go over a year, Jet will need to have another bond term purchased by the contractor. This subsequent bond term can be cancelled and refunded appropriately.
How Do Contractors Avoid Union Wage and Welfare Bond Claims Issues?
Each individual local union operates a bit differently, but the bond is performing the same financial function. To avoid complications contractors need to pay their laborers in-full and on-time. If union dues are to be withheld from laborers' pay and submitted to the union, then they must be done so according to the agreement with the union.
In an industry where cash flow can be tight at times (no thanks to project owners), contractors need to be transparent with their employees and the union to head off potential future issues with wages and dues. We haven’t met a local union that wasn’t open to working with contractors as various complications arise.
Timelines to pay wages and dues vary, as do timelines to bring an action for delinquent or defaulted payments. The best resource for that information is the agreement made with the union. We have detailed what information we could muster up above for each local union.
What Happens if I Get a Wage and Welfare Surety Bond Claim?
Get any and all information to Jet as soon as possible. If we catch wind of a claim from a union, we will let you know ASAP. Jet’s legal team will defend contractors so long as they have a case that proper wages and dues were submitted. Otherwise, Jet is obligated to make payment to damaged laborers and unions.
The surety bond is not like insurance and is more like a letter of credit being a third-party guarantee of compensation. The negligent act of not paying wages and dues remains with the contractor. The contractor remains responsible for the default and must pay Jet back (or any surety company for that matter if they held the bond).
Are There Other Bonds That Ohio Contractors Need?
You bet. Each county and city in Ohio has various contractor license and permit bond needs that Jet provides. There may also be Ohio state or project-specific requirements for contractors. Check out our full list of Ohio Construction Bonds.
If you have a union crew, it is easy to assume you do not just work in your local jurisdiction and will travel across Ohio to perform work. Each local union will have its wage and welfare requirements as seen above. Other states will operate the same way, so if you cross the border and need a bond requirement come to Jet for your bonding needs.