NY benefit contribution and wage payment bond cost
The Electrical Industry Board of Nassau and Suffolk Counties requires employers having collective bargaining agreements with Local Union No. 25, International Brotherhood of Electrical Workers to file a surety bond.
The amount of the bond varies according to the type of collective bargaining agreement and the quantity of personnel contracted by the employer. As the number of personnel increases, so does the bond requirement. See the chart below for further details. This bond runs for 1 year before requiring renewal.
All benefit contribution and wage payment bonds require an underwriting process to determine premiums. This process includes a review of the applicant’s financial history and credit report. Worried about your credit? There’s no need to, as Surety Bonds uses a bad credit bonding program to help individuals with lower credit!
Why this bond
This bond prevents contractor employers having established collective bargaining agreements with Local Union No. 25 of the International Brotherhood of Electrical Workers from withholding benefits from their employees. The bargaining agreement outlines requirements, benefits and wage payments that are owed to the employees of these employers. Violations of this bond include:
- Failure to make payment of benefit contributions
- Failure to make payment of wages
- Failure to make payment of supplemental benefits
- Failure to make payment of payroll deductions
- And more
If the principal (contractor employer) breaches the terms of the bond, then the Electrical Industry Board of Nassau & Suffolk Counties can file a claim against the bond. If proven valid, the claim will require the surety to cover damages up to the penal sum of the bond. In no case may the compensation by the surety exceed the penal sum of the bond.
NY benefit contribution and wage payment bond details
Contractor employers who have collective bargaining agreements with the Local Union No. 25, International Brotherhood of Electrical Workers are obligated to post a surety bond by the Electrical Industry Board of Nassau & Suffolk Counties. The bond amounts vary from $20,000 to $350,000, depending on the type of agreement and the number of personnel employed by the contractor. The length of the bond runs for 1 year before requiring renewal. In the event of cancellation, the surety must provide the Electrical Industry Board of Nassau & Suffolk Counties with a 60-day notice of cancellation. All claims filed during this period remain the surety’s to handle.
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