Contractors who hire carpenters, millwrights and other tradesmen in Texas will typically need to file a Wage and Welfare Bond if the workers belong to a union. This type of surety bond is used to guarantee the payment of wages or contributions for health, dental, or other benefits as agreed in the contract between the employer and the union.
Jet has a long history assisting contractors with various surety bond needs and these union bonds are just par for the course in our experience.
You can get your Wage Bond starting around $600 a year with Jet, but this will depend on the bond limit. We will also need to conduct a personal credit check and potentially review financial statements.
So, how do you know what your bond limit needs to be? The union generally describes it in the agreement. For example, the Southern States Millwright Regional Council, Local 2322 needs a $30,000 bond to be filed when the employer has had issues with timely contributions to the trust fund or fringe benefits in the most recent six (6) months. The limit can temporarily be raised for six (6) months if the employer is late on payment and does not respond within 10 days of the notification; the new limit will be $60,000 or an amount that is twice the average annual contribution rate.
It only takes a few minutes to fill out the application and see what rate you are approved for. Typically, you will find an approved quote that is ready to purchase; but if your bond limit is over $10,000, a further review may be required. Your application will be submitted and if additional information is needed, a Jet team member will reach out to you. Once your quote is ready, it will be emailed to you.
When you are ready to purchase you can submit your payment through the link email to you. Let us know whether you need the bond mailed to you so you can file it yourself or leave it up to Jet. After the payment is processed, Jet will fill out the bond form and send it directly to the union or to you. The original bond must be sent to your local union. Find the address in the chart below.
|Central South Carpenters Regional Council||2850 Massachusetts Ave|
Metairie, LA 70003
|Southern States Millwright Regional Council||1407 Knoxville Ave|
Russellville, AR 72802
|Local 14||5747 Grey Rock Dr|
San Antonio, TX 78228
|Local 429||1901 Susan Dr|
Arlington, TX 76010
|Local 551||5500 Spencer Hwy, Suite 201|
Pasadena, TX 77505
|Local 665||12180 Tascosa Dr|
Amarillo, TX 79124
|Local 1266||1825 South I-H 35|
Austin, TX 78741
|Local 1421||1901 Susan Dr|
Arlington, TX 76010
|Local 2232||2151 Alabama St|
Pasadena, TX 77503
These bonds are issued for a term of one year at a time. The Wage and Welfare Bond will need to be renewed if you still have carpenters or millwrights who are members of a union under your employment. Jet will send you a notice when your term is getting close to the expiration date; if you need to renew, simply choose how you’ll be paying for the new term (monthly or annual) and submit payment.
If you need to cancel your Wage and Welfare Bond, email Jet at [email protected] to get the 30-day cancellation process started. Once your bond is fully cancelled by the union, Jet will end monthly payments and for those who paid annual terms, Jet will calculate the unused time into a refund.
The main objective of Wage and Welfare Bonds is to guarantee — you guessed it — wages and welfare benefits. The bond keeps employees from having labored in vain. If an employer breaks the employment contract or collective bargaining agreement, the employee (who is a union member) or the union on their behalf can file a claim on the bond.
If you receive such a claim, contact Jet right away. We will see if the complaint has any merit by reviewing what evidence is available. If you are found to have withheld wages or benefit contributions for labor provided, Jet will have to compensate the union member from the bond.
It is important to note that a claim payout does not relieve you of your obligation to complete the payment that was owed. You are responsible for restoring the bond; the union can prevent its members from continuing work until the bond requirement has been reestablished. So, it is best to pay employees and fringe benefit contributions right away without adding on this arduous process that holds you accountable in the end.
If you are working with other trades, it is possible that other unions will require you to file a Wage and Welfare Bond to protect their own members.