The Federal Bonding Program U.S. Dept of Labor

What is the Federal Bonding Program? A FREE job placement tool Fidelity bonding insurance through the McLaughlin Company (an agent for Travelers Insurance Co) and sponsored by the US DOL Protects employers against employee theft or dishonesty $5,000 coverage for a 6-month period, FREE to the employer and employee Many employers actually already purchase commercial fidelity bonds to cover their workers and the problem comes in when the worker is determined to be “not bondable”. This is typical of many housekeeping and janitorial jobs. If a worker is not normally bondable under a company’s commercial bond they automatically qualify for the federal bonding program. You can get more than one $5000 bond for the same employee, if needed to cover access to merchandise with a higher value. The free coverage lasts for 6 months and after this time the employee will be deemed “bondable” under the employer’s regularly purchased commercial bond with McLaughlin Co.

Who qualifies? At risk job applicants denied (or potentially denied) commercial bonding due to:   Arrest, conviction or imprisonment Alcohol or drug abuse Poor credit history No employment history Dishonorable discharge from the military ANY other reason that makes the job seeker “Not Bondable” The hiring company is not required to first attempt to bond the job seeker through their normal commercial bonding process. And the bond can be used for jobs that do not normally require bonding. The main purpose of the Federal Bonding Program is to help secure employment for applicants who are having a hard time getting a job due to their questionable backgrounds. However, a bond can be issued to cover a current employee who is not bondable under the employer's insurance, and needs the program's bonding in order to secure a promotion to a new job requiring bonding or to prevent being laid off. 

Limitations of the program Does not cover poor workmanship, injuries or accidents The job cannot be self-employment or independent contractor Some temporary jobs can’t be covered (< 6 month duration)

Does it work? One study that surveyed employer attitudes toward hiring ex-offenders showed that while only 12% of employers said that they were willing to hire these applicants, 51% said that they would hire ex-offenders if they were bonded. To date more than 40,000 applicants have obtained jobs due to being bonded, and 99% have proven to be honest employees.

How to set it up Super easy! There is no paperwork involved for the employer or employee! Contact the Bonding Coordinator when you have a job seeker with a firm job offer contingent upon receiving a fidelity bond The Bonding Coordinator will ask for some basic information about the employer, the job, and the job seeker. The employer will get the bond in the mail!

For more information Visit http://bonds4jobs.com This page will direct you to your state’s federal bonding program coordinator and give answers to many frequently asked questions.