Wage payment bond cost
The West Virginia Division of Labor requires employers who hire union members for certain types of construction work to post surety bonds. Wage payment collection bond amounts must be equal to the total of the employer’s gross payroll for 4 weeks at full capacity or production plus 15% of the total of the employer’s gross payroll for 4 weeks. The amount will increase or decrease as the employer’s payroll fluctuates.
The amount will not be decreased without the approval of the Commissioner. Applicants should verify their required bond amount with the state prior to bonding.We can offers 5-year wage payment collection bonds in West Virginia for different costs depending on a review of each applicant’s credit report.
Why this bond
Wage payment surety bonds in West Virginia ensure that principals (employers) pay employee wages and fringe benefits when they are due as required by the Wage Payment and Collection Act.If the principal fails to comply with these terms, the bond protects employees from financial loss up to the full bond amount. The principal must reimburse the surety for any damages paid out.
West Virginia wage payment bonds remain continuous until canceled for a period of 5 years from the bond’s effective date. The surety can cancel the bond at any time by giving written notice of cancellation via certified mail (return receipt requested) to the Commissioner of the Division of Labor and the principal.Cancellation becomes effective 60 days after the postmarked date of the written notice.These bonds must be acknowledged by a notary public.
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