In Illinois, you may need to file a surety bond if you employ unionized workers. This creates a financial guarantee that you will pay owed wages and benefits, contribute to welfare funds, and more.
Quick Bond Facts
Purpose: To protect union-member interests in collective bargaining agreements between unions and employers
Who Needs It: Employers of union members in various industries, especially construction and specialized trades such as plumbers, iron workers and electricians
Premium Rates: Vary based on financial risk, typically 1–10% of the coverage amount
Use this guide to learn all about how wage and welfare bonds work in Illinois then apply for your free quote.
What Are Illinois Union Wage and Welfare Bonds?
Illinois wage and welfare bonds, also known as wage bonds and fringe benefit bonds, are required for employers when negotiating collective bargaining agreements (CBAs) with certain unions.
This type of surety bond guarantees a union-member employer will honor financial obligations and union contracts, including:
Payment of union dues
Contributions to funds
Delivery of benefits packages
Each particular bond form has unique terms for the union requiring it.
How Much Do Union Wage Bonds Cost in Illinois?
Employers with a strong financial standing often pay a premium price of 1-5% of the total Illinois wage and welfare bond amount. However, these bonds require underwriting review and may cost anywhere from 0.5% to 10% depending on various risk factors.
Request a free quote today to get your exact rate.
Bond Type
Cost
$1,000-$100,000Chicago and Vicinity Laborers' District Council Employer's Bond
Subject To Underwriting
$1,000-$100,000Chicago Journeymen Plumbers Local Union 130 Dual Obligee Bond
Subject To Underwriting
$1,000-$100,000Chicago Laborers' Pension and Welfare Funds Bond
Subject To Underwriting
$10,000Mid-America Carpenters Regional Council Wage and Fringe Benefit Bond1-5 employees
Subject To Underwriting
$15,000Mid-America Carpenters Regional Council Wage and Fringe Benefit Bond6-10 employees
Subject To Underwriting
$20,000Mid-America Carpenters Regional Council Wage and Fringe Benefit Bond11-15 employees
Subject To Underwriting
$50,000Mid-America Carpenters Regional Council Wage and Fringe Benefit BondMore than 15 employees
Subject To Underwriting
$1,000-$200,000District 1 Bricklayers and Allied Craftworkers Wage and Welfare Bond
Subject To Underwriting
$1,000-$100,000IBEW Local #150 Wage and Fringe Benefit Bond
Subject To Underwriting
$5,000IBEW Local #197 Wage and Fringe Benefit Bond1 Employee
Subject To Underwriting
$30,000IBEW Local #197 Wage and Fringe Benefit Bond2-6 Employees
Subject To Underwriting
$55,000IBEW Local #197 Wage and Fringe Benefit Bond7-12 Employees
Subject To Underwriting
$110,000-$500,000IBEW Local #197 Wage and Fringe Benefit Bond13+ Employees ($55,000 for each additional employees or fraction thereof)
Subject To Underwriting
$1,000-$100,000IBEW Local 538 Wage and Welfare Bond
Subject To Underwriting
$70,000IBEW Local Number 134 Employer Fringe Benefit Bond1 to 5 employees
Subject To Underwriting
$140,000IBEW Local Number 134 Employer Fringe Benefit Bond6 to 10 employees
Subject To Underwriting
$280,000IBEW Local Number 134 Employer Fringe Benefit Bond11 to 20 employees
Subject To Underwriting
$280,000-$500,000IBEW Local Number 134 Employer Fringe Benefit Bond21+ employees
Subject To Underwriting
$50,000IBEW Local Number 134 Employer Wage Bond1 to 5 employees
Subject To Underwriting
$100,000IBEW Local Number 134 Employer Wage Bond6 to 10 employees
Subject To Underwriting
$200,000IBEW Local Number 134 Employer Wage Bond11 to 20 employees
Subject To Underwriting
$200,000-$500,000IBEW Local Number 134 Employer Wage Bond21+ employees (penal sum of four weeks of net wages and Local Union working dues for each employee)
Subject To Underwriting
$1,000-$100,000International Brotherhood of Electrical Workers Local Union #34 Wage, Fringe Benefit and Payroll Deduction Bond
Subject To Underwriting
$15,000Iron Workers Local Union 1 Wage and Welfare Bond1-3 iron workers employed
Subject To Underwriting
$30,000Iron Workers Local Union 1 Wage and Welfare Bond4-8 iron workers employed
Subject To Underwriting
$75,000Iron Workers Local Union 1 Wage and Welfare Bond9-20 iron workers employed
Subject To Underwriting
$125,000Iron Workers Local Union 1 Wage and Welfare Bond21-40 iron workers employed
Subject To Underwriting
$250,000Iron Workers Local Union 1 Wage and Welfare BondMore than 41 iron workers employed
Subject To Underwriting
$20,000Laborers Local 231 Union Bond
Subject To Underwriting
$25,000Local 502 Contractors Wage and Fringe Benefits Bond10 or less employees
Subject To Underwriting
$50,000Local 502 Contractors Wage and Fringe Benefits BondMore than 10 employees
Subject To Underwriting
$1,000-$100,000Local 6 Bricklayers & Allied Craftworkers Wage and Benefit Bond
Subject To Underwriting
$100-$1,000,000Local Union No. 597 Pipe Fitter Wage & Welfare Bond
Subject To Underwriting
$50,000Local Union No. 9 IBEW Employer's Fringe Benefit Bond
Subject To Underwriting
$10,000Mid-America Carpenters Regional Council Wage and Fringe Benefit Bond1-5 employees
Subject To Underwriting
$15,000Mid-America Carpenters Regional Council Wage and Fringe Benefit Bond6-10 employees
Subject To Underwriting
$20,000Mid-America Carpenters Regional Council Wage and Fringe Benefit Bond11-15 employees
Subject To Underwriting
$50,000Mid-America Carpenters Regional Council Wage and Fringe Benefit Bondin excess of 15 employees
Subject To Underwriting
$25,000Operating Engineers Local 520 Wage and Welfare Bond
Subject To Underwriting
$50,000Operative Plasterers & Cement Masons Local 18 of Central Illinois Bond
Subject To Underwriting
$1,000-$20,000Painters District Council No. 30 Wage and Benefit Bond
Subject To Underwriting
$15,000Painters' District Council No.14 Wage and Welfare Bond
Subject To Underwriting
$1,000-$100,000Plumbers & Pipefitters Local 23 Wage & Welfare Bond
Subject To Underwriting
$1,000-$100,000Southwestern Illinois Laborers’ District Council Wage and Fringe Benefit Bond
Subject To Underwriting
SuretyBonds.com offers the lowest rates available from our nationwide network of surety providers with no added fees.
How Does an Illinois Union Wage and Welfare Bond Work?
An Illinois wage and welfare bond binds three parties in a legal contract:
Principal: The company employing union members
Obligee: The union requiring the bond to protect employee interests
Surety: The provider issuing the bond and backing the principal’s obligation
If a principal fails to uphold its obligations, the bond can be used to pay claims for owed dues, wages, and fringe benefits up to the full coverage amount.
How Do I Get a Wage Bond in Illinois?
You may need a surety bond before you can hire employees who are members of certain unions. If that’s the case for you, SuretyBonds.com provides the fastest and easiest way to get a wage and welfare bond:
Application: Submit an online quote request.
Quote: Receive your free quote within one business day.
Signatures: Sign your indemnity agreement and bond form.
Delivery: Receive your official bond form via email or FedEx.
File the bond documentation with the obligee as instructed. If the union requires the original bond form with wet signatures, we offer an overnight shipping option. Otherwise, we’ll email your official bond as soon as it’s processed.
Can I Get Bonded With Bad Credit?
Yes, you can often still get a wage bond even with low credit. We’ll work with our network of surety markets across the nation to match you with a surety provider at the lowest available rate.
Union wage and welfare bonds in Illinois typically last for a one-year term. Each bond has unique terms, but most can be renewed without the need to issue a new bond form.
When you choose SuretyBonds.com, we’ll contact you during the renewal period with an invoice and instructions on how to keep your bond policy active for another term.
