Federal Bonding Program

The Purpose of the Bonding Program is:

To assist ex-offenders and other at-risk persons with questionable backgrounds secure jobs, which might be denied employment due to their previous personal or employment history.
To help protect employers from loss of money or property, due to dishonest actions of the potential employee.
The bonding program is a tool for marketing an applicant to prospective employers.

Provides job opportunities to job seekers who have been or may be denied commercial bonding coverage due to their previous personal or employment history.
Promotes confidence in a job seeker who needs a break to participate in employment and needs chance to show that he or she can be a productive worker
Provides fidelity bond insurance for up to six months for any job seeker with risk factors
Applies to any job except self-employment
Bonding coverage is provided at no cost to the job seeker

Bond coverage is provided at no cost to the employer as an incentive to hire hard to place job applicants.
The bond coverage is effect the day the new employee begins work with duration of six months.
The employer gets the worker’s skills and abilities without taking the risk of potential theft or dishonesty.
There are no documents to sign or paperwork to complete.
The bond has no deductible and reimburses the employer for any loss due to employee theft within the specified six-month period.

Individuals who are not commercially bondable due to past questionable behavior which casts doubt upon their credibility or honesty, or who have committed fraudulent or dishonest acts are eligible. This includes:
Ex-offenders, including anyone with a record of arrest, conviction or imprisonment.
Those with a poor financial credit history or who have declared bankruptcy.
Ex-addicts with history of alcohol or drug abuse.
Those who have been dishonorably discharged form the Armed Forces.
Persons lacking a work history from low-income families.

The employer must have a specific date set for the applicant to begin work.
The applicant must be of legal working age.
The position will be one where the applicant will work at least 30 hours of steady work per week for period a of six months. Federal taxes must be automatically deducted from the check.
Ensure that the job is suitable for the applicant.
Example: An individual convicted of drug abuse, should not be placed where drugs are readily accessible like a pharmacy or hospital.
Self-employed and/or franchised individuals are not eligible.

Bonds are issued in increments of $5,000 for a period of six months. The maximum amount is $25,000.
$ 5000 is generally sufficient to cover most circumstances.
Coverage is based on the level potential or estimated risk to the employer for financial loss, which could result from dishonest acts by the individual while on the job (excluding vehicles).
Bonds in excess of $5000 should be limited to individuals who may steal/destroy more than $5,000 in money or property at one time. The employer should base a bond request in excess of $5,000 upon reasonable justification.

Bonds can be issued to any employer regardless of whether the company has or has not commercially purchased a Fidelity Bond.
Specific coverage includes theft, forgery, larceny or embezzlement. Bonds do not provide coverage for situations due to poor workmanship, job injuries or work accidents.
It is not a bail bond, court bond, contract bond, performance bond or license bond.
Bonds are not transferable from one employer to another.

Visit any DWS Employment Center (EC) to inquire about and/or apply for the bonding program. Eligibility will be determined and employment information for a bona fide job offer will be verified, and a bond form completed by an employment counselor at the EC.
A letter will be sent to the employer confirming the bond. The letter includes the name of the job seeker for whom the bond is being issued, bond effective date, amount and period of coverage, etc. This letter confirms the bond in advance of receipt of the actual Fidelity Bond, which is mailed to the employer.