Federal Bonding Program

In 1966 the United States Department of Labor (USDOL) established the Federal Bonding Program to provide employers free access to fidelity bonds to create opportunities for at-risk job seekers. While primarily thought of as a hiring tool for justice-involved individuals, the federal bonding program is a unique hiring tool for individuals whose backgrounds may otherwise create barriers to employment. This includes individuals who are/have:

  • In recovery from substance use
  • Receiving welfare
  • Poor credit records
  • Economically disadvantaged youth and adults lacking work histories
  • Dishonorably discharged from the military

About the Bonding Process

The Federal Bonding Program bonds provide a guarantee to employers of job honesty by job seekers. Employers can obtain the bonds free as an incentive to hire these individuals. The bonds cover the individual's first six months of employment. A bond amounts start at $5000.00 and are designed to reimburse employers for any loss due to employee theft of money or property. The Federal Bonding Program is straightforward and easy for employers and job seekers alike:

  • No special applications for job seekers
  • No bond approval process
  • No Federal regulations covering the bonds that are issued
  • No papers for employers to sign or submit
  • No follow-up or required termination actions
  • No deductible if employee dishonesty occurs
  • No bondee age requirements (must be legal working age in the state)

Since their inception bonds have only been activated one percent of the time! But just in case, bonds can be applied:

  • In ANY state
  • In ANY job
  • For ANY employee dishonesty committed on or away from the work site
  • For ANY full or part-time employee paid wages, including individuals hired by temp agencies. Self-employed people cannot be covered by Fidelity Bonds

How to Get Started

A bond is like an insurance policy for your employer. There is no cost and the process is straightforward. To learn more: