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Texas Plumbers and Pipefitters Union Wage and Welfare Bond
Wage and Welfare Bonds are common ways that unions protect the wellbeing of their members. In Texas, plumbers and pipefitters are protected under the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry in Local Union 68, Local Union 100, and Local Union 142. These local unions require employers of their members to file a Plumber and Pipefitters Wage and Welfare Bond to ensure that members will receive wages and contributions to benefit funds.
Click the button above to see what rate you are approved for!
What Is the Lowest Price for the Plumbers Wages, Health, and Welfare Bond?
With Jet, you can purchase your bond for as low as $250 per year! This is a starting point and actual costs will depend on the amount required by your bond limit and a soft credit check. Additional financial reviews may be required for higher bond limits. See the chart below for what a preferred credit applicant’s quote would look like.
| Bond Limit | Annual Cost |
|---|---|
| $10,000 | $250 |
| $25,000 | $500 |
| $50,000 | $1,000 |
The bond limit is suggested by the local union, typically in a calculation that is based on the amount of fringe benefit contributions owed, the number of employees and the number of hours worked.
For Local Union No. 68, the amount can vary with a minimum of $5,000 when hiring 1-2 union members or $20,000 when hiring 3+ union members; the maximum limit is $200,000.
For Local Union No. 100, a $10,000 bond is required when hiring five (5) or less union members and a $50,000 bond is required for more than five union members. So, since the limit can be vastly different, it is a major variable in how much your bond costs.
The Plumbers and Pipefitters Wage and Welfare Bond Process With Jet
To get started with getting your quote, you just need to fill out Jet’s simple application. We simplified the application so that it is possible to purchase your bond as soon as you’re done. All applications will include a soft credit check so a social security number must be submitted, but additional information (like financial statements) may be requested when the bond limit is on the higher end.
You will receive your bond quote either at the end of the application or, if submitted for review, you will get an email with your approved quote after all required information has been reviewed. Just select how you’d like to pay for the bond and submit payment information. Once your payment is processed, a digital copy of your bond and a receipt will be sent in a confirmation email.
The original bond must be filed with the appropriate local union. Jet will prepare the bond and send it either directly to the local union or mail it to you if you requested it during checkout. If sending it yourself, check the chart below for the correct address.
| Union | Address |
|---|---|
| Local 68 | UA Plumbers Local Union 68 Benefit Fund Office PO Box 8726 Houston, TX 77249-8726 |
| Local 100 | UA Plumbers and Pipefitters Local Union 100 3010 Interstate 30 Mesquite, TX 75150 |
| Local 142 | Plumbers and Pipefitters Local Union 142 3630 Belgium Ln San Antonio, TX 78219-2506 |
Wage and Welfare Bonds are usually issued one year at a time but can be renewed as needed. Jet will send you a renewal notice near the end of your term and, if you need to renew, simply fill out the notice and mail it back or take care of it electronically via the emailed notice.
If you need to cancel the bond, send an email to Jet at [email protected] to start the process. There is a 30-day period before cancellation is final, which holds you and Jet liable during this time. Payment shall be continued during the cancellation period, with monthly payments ending after the bond is released and annual terms being refunded for the time left unused.
How Does a Contractor Avoid Wage and Welfare Bond Claims?
The main objective of a Wage and Welfare Bond is to guarantee that union members who have labored for an employer will receive due payment and fringe benefit contributions as stated in the collective bargaining agreement made between the contractor and the local union. Fringe benefits can include the following:
- Health fund
- Pension fund
- Industry fund
- Vacation savings
- Educational fund
- Market recovery
Failure to honor the collective bargaining agreement and withholding payment for work or payment into benefit funds can lead to a claim on the bond. Local unions have their own process for complaints, penalties and bond claims, but let’s look at Local Union 68 as an example.
- If a payment or contribution is late, the employer/contractor must make payment within 10 days
- An employer who fails to complete due payment within 10 days will be charged interest on the amount that was due
- If payment is two months late, the Fund Manager will send notice of delinquency and a potential loss of insurance coverage in the future
- If payment is three months late, action will be taken on the Wage and Welfare Bond
- An employer will be responsible for any court costs, interest, attorneys fees or other incurred costs in recovering due payment through court
What we can infer from this process is that you, as an employer, will have multiple opportunities to complete the payment owed. The more you withhold payment, the worse it will get for you, with interest adding up over time on top of the original due payment.
If it gets to a legal battle, you would be responsible for incurred costs there, on top of paying Jet back in the claim payout. It is best to make sure that you are fulfilling the payments established in the collective bargaining agreement right away.
Are There Other Bonds That an Employer Needs?
It is common for tradesmen to be part of a union so if you are hiring workers from other trade specialties, you may encounter other Wage and Welfare Bonds.
