FEDERAL BONDING PROGRAM
Jobseekers who have in the past committed a fraudulent or dishonest act, or who
have demonstrated other past behavior which casts doubt upon their credibility
or honesty, often experience a special barrier to gaining employment due to
their personal backgrounds. Such persons are routinely classified as "at-risk"
An innovative activity that serves as a tool to secure the job placement of ex-offenders and other high-risk applicants. The program, sponsored by the U.S. Department of Labor, issues Fidelity bonds.
It is a business insurance policy that protects the employer in case of any loss
of money or property due to employee dishonesty. It is like a "guarantee" to the
employer that the person hired will be an honest worker.
The bond is given to the employer free-of-charge, and serves as an incentive to the company to hire a job applicant who is an ex-offender or has some other "risk" factor in their personal background. The employer is then able to get the workers' skills without taking any risk of worker dishonesty on the job.
In addition, employers may receive up to a $2400 - $9000 tax credit for hiring an individual who has been convicted of a felony and/or released from incarceration or another WOTC targeted program. For more information go to: http://www.coworkforce.com/emp/taxcredits.asp.
It insures the employer for any type of stealing by theft, forgery, larceny, or embezzlement. It does not cover liability due to poor workmanship, job injuries, or work accidents. It is not a bail bond or court bond for the legal system. It is not a contract bond, performance bond, or license bond sometimes needed to be self-employed.
The worker must meet the State's legal age for working; there are no age limits. The job may be full time, part time, or seasonal. Workers must be paid wages with Federal taxes automatically deducted from pay; self-employed persons cannot be covered.
Bond coverage is provided for any persons whose background usually leads employers to question their honesty and deny them a job. The program will cover any person who is a "risk" due to their being in one or more of the following groups:
Issuance of the bond for job placement to occur can be requested by either the employer or the job applicant. This request is to be made to the local agency certified by the Federal Bonding Program.
For the bond to be issued, the employer must make the applicant a job offer and set a date for the individual to start work. The job start date will be effective date of the bond insurance which will terminate six months later. After the six months, continued coverage will be made available for purchase if the worker has exhibited job honesty under the program's bond.
The initial Fidelity bond is issued for a six-month period.
A total of $5,000 bond coverage is usually issued, with no deductible amount of liability for the employer. Larger bond amounts can possibly be issued if the certified agency issuing the bonds has acquired a special bond package and has determined that larger bond amounts are appropriate.
About 40,000 applicants have obtained jobs due to being bonded, and 99% have proven to be honest employees.
Reina Wright, (303)318-8828,
firstname.lastname@example.org (Federal Bonding Coordinator)