Wage & Fringe Benefits Bond - Northern California Pipe Trades Trust Funds UA Local No. 342 in California

Brief Summary

If you signed a collective bargaining agreement with UA Local 342, the Northern California Pipe Trades Trust Funds expect a fringe benefit bond on file. The trust funds publish their own bond form, so the bond you buy has to be written on that form, notarized for both you and the surety, and delivered to the Concord trust fund office.

Contractors who employ workers represented by UA Local 342 under a collective bargaining agreement post this bond in favor of the Northern California Pipe Trades Trust Funds (NCPTTF). It guarantees the employer's fringe benefit contributions, plus any liquidated damages and interest assessed for late payment. The amount is filled in on the trust funds' own form, so confirm the figure required for your company with the trust fund office before the bond is issued.

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How to Apply for a Wage & Fringe Benefits Bond:

• Ask the trust fund office (925/356-8921) or UA Local 342 (925/686-5880) for the bond amount required for your company.
• Download the NCPTTF Employer's Fringe Benefit Bond Form (CBA) from the Local 342 trust fund employer page.
• Apply for the bond using the employer's exact legal name and entity type as they appear on the agreement.
• Pay the premium and have the surety complete and sign the form through its attorney in fact.
• Get notary acknowledgments for both the principal and the surety signatures.
• Deliver the original bond to the NCPTTF business office, 935 Detroit Avenue, Suite 242A, Concord, CA 94518-2501.

Detailed Information About the California Wage & Fringe Benefits Bond:

What the bond guarantees

The Northern California Pipe Trades Trust Funds publish an Employer's Fringe Benefit Bond Form (CBA). It names NCPTTF as obligee and covers all fringe benefit contributions owed under the Local 342 agreement, along with liquidated damages and interest assessed for late payment. The form recites that the agreement requires a bond large enough to guarantee wages, fringe benefits, liquidated damages, interest, attorneys' fees and costs owed to the Health and Welfare Trust Fund, the Pension Trust Fund, the Supplemental 401(k) Retirement Plan, the Joint Labor and Management Cooperation Committee, and the Local 342 Apprenticeship and Training Trust Fund.

Who posts it

Any employer with a collective bargaining agreement covering employees represented by UA Local 342. The bond amount is left blank on the form and is set for each employer, so ask the trust fund office or Local 342 what figure applies to you before you apply.

Terms written into the form

The surety must be licensed to do business in California. A claim must be filed with the surety within 90 days after the trust funds actually discover a payment default, and the surety pays within 120 days of that notice. If the trust funds have to sue to enforce the bond, the surety also pays their costs and attorney fees. The surety can cancel only 30 days after the trust funds receive written notice.

Why late payments matter

Reports and contributions are due at the bank by the 15th of the month after the work month and become delinquent if not received by the 20th. Late or bounced payments trigger liquidated damages and interest, and those charges are exactly what this bond backs up. A claim against the bond is a debt you repay to the surety.

Eligibility and Requirements for a California Wage & Fringe Benefits Bond:

• A signed collective bargaining agreement with UA Local 342.
• A surety licensed to transact business in California.
• The bond written on the trust funds' own form, with NCPTTF named as obligee.
• Notary acknowledgments for both principal and surety, which the form says must be submitted with the bond.
• Owner credit review by the surety, which sets the premium rate.

California Wage & Fringe Benefits Bond FAQs:

Official and Additional Resources for the California Wage & Fringe Benefits Bond: