What is a Wage and Welfare Bond?

What is a Wage and Welfare Bond?

By | 2018-03-28T13:03:23-07:00 March 28th, 2018|0 Comments

Wage and welfare bonds, also referred to as union wage bonds, are a type of surety or financial guarantee bond that a union takes out to ensure that union dues get paid in the event that a member does not pay dues. Typically, wage and welfare bonds do not have a deductible, meaning that unions are completely covered by insurance companies for all applicable losses. Labor unions take out wage and welfare bonds at the local level, guaranteeing that the local union, not the national organization, receives dues.

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