Wage & Fringe Benefits Bond - Union of Roofers, Waterproofers and Allied Workers Local No. 4 in Pennsylvania
Table of Contents
Brief Summary
Pennsylvania roofing contractors who sign with Local 4 to staff jobs in its New Jersey counties take on a monthly wage and fringe obligation. This bond guarantees it to the union and its benefit funds, so you can sign the agreement and start work without parking the full bond amount in cash.
The Wage and Fringe Benefits bond for the United Union of Roofers, Waterproofers and Allied Workers Local 4 guarantees that a signatory contractor pays the wages and fringe benefit contributions owed under the Local 4 agreement. Local 4's office is at 385 Parsippany Road, Parsippany, New Jersey, and its listed jurisdiction is Essex, Middlesex, Monmouth, Morris, Somerset, Sussex, Union and Warren Counties. Confirm the current amount and obligee wording with Local 4 before the bond is issued.
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How to Apply for a Wage & Fringe Benefits Bond:
- Confirm the job is in one of the eight New Jersey counties Local 4 covers.
- Ask Local 4 for the bond amount, the obligee wording and its bond form.
- Read the default and notice terms in that form before signing anything.
- Provide the legal business name exactly as it appears on your Local 4 agreement.
- Provide owner information for the surety's credit review, then sign the indemnity agreement and pay the premium.
- Deliver the executed bond to Local 4 or the fund office it names.
Detailed Information About the Pennsylvania Wage & Fringe Benefits Bond:
Local 4 works out of New Jersey
The New Jersey Department of Labor lists Roofers Local 4 at 385 Parsippany Road, Parsippany, N.J. 07054, with jurisdiction over Essex, Middlesex, Monmouth, Morris, Somerset, Sussex, Union and Warren Counties. A Pennsylvania contractor that signs the Local 4 agreement to man a job in those counties takes on the same wage and benefit obligations as a New Jersey shop, and this bond secures them. Local 4's benefit plans include the Composition Roofers No. 4 Welfare Fund, based in Parsippany.
Read the default clause before you sign
Some roofers contribution bonds are written so the funds decide when the contractor is in default. In a 2016 Third Circuit decision involving the funds of Roofers Local 30 in eastern Pennsylvania, the bond left the determination of default to the funds' "sole and exclusive" discretion, and the court held the surety liable for the full amount of a bond that a rider had raised from $400,000 to $800,000. That case involved a different local, but it shows how courts in this circuit read these bonds: as written. Ask Local 4 for its bond form and read the default language before you sign the indemnity agreement.
What the funds can recover
Under 29 U.S.C. 1145, an employer must pay contributions on the terms of the plan and the collective bargaining agreement. If the funds sue and win, 29 U.S.C. 1132(g)(2) requires the court to award the unpaid contributions, interest, liquidated damages under the plan, and reasonable attorney's fees and costs.
Amount and filing
Local 4 or its fund trustees set the bond amount. Get the current figure, the exact obligee name and any required form from the Local 4 office before the bond is written. The surety sets the premium after reviewing owner credit and company financials.
Eligibility and Requirements for a Pennsylvania Wage & Fringe Benefits Bond:
- Bond in favor of Roofers Local 4 and the trustees of its benefit funds, as the union directs.
- Conditioned on payment of wages and fringe benefit contributions under the Local 4 agreement.
- Default language that may leave the decision to the funds.
- A surety acceptable to the union.
- Bond kept in force while the union requires it.
Pennsylvania Wage & Fringe Benefits Bond FAQs:
Local 4 is at 385 Parsippany Road, Parsippany, N.J. 07054. The New Jersey Department of Labor lists its jurisdiction as Essex, Middlesex, Monmouth, Morris, Somerset, Sussex, Union and Warren Counties.
If you sign the Local 4 agreement to staff work in its counties, you owe the same wages and fringe contributions as any other signatory. This bond is how the union and its funds are secured for that.
Check the bond form. Some roofers contribution bonds give the funds sole discretion to declare default, and the Third Circuit enforced that wording in a 2016 case involving Roofers Local 30 funds. Read Local 4's form before you sign.
Under 29 U.S.C. 1132(g)(2), a court that rules for the funds must award the unpaid contributions, interest, liquidated damages under the plan, and attorney's fees and costs.
Local 4 or its fund trustees set the amount. Get the current figure and exact obligee name from the Local 4 office before you apply.
