Federal Bonding Program

The Federal Bonding Program is an incentive program that allows employers to hire with limited liability to their business at-risk job applicants. A Federal Fidelity Bond, supplied by Travelers Insurance Co., is a business insurance policy that insures the employer for theft, forgery, larceny or embezzlement by the bonded employee.

The bond does not cover liability due to poor workmanship, job injuries or work accidents. The Federal Bonding Program does not provide bail bonds or court bonds for the legal system nor contract bonds, performance bonds or license bonds that are sometimes needed for self-employment.

Eligibility Requirements

At-risk job applicants are:

• Ex-offenders
• Recovering substance abusers (alcohol or drugs)
• Welfare recipients and other persons having poor financial credit, or who have declared bankruptcy
• Economically disadvantaged youth and adults who lack a work history
• Individuals dishonorably discharged from the military
• Anyone who cannot secure employment without bonding services

Employed workers who need bonding services to avoid layoff or to secure a promotion are also eligible.

All employers are eligible for bonding services. Bonds can be issued as soon as the applicant has a job offer and a scheduled start date.

Bonds are in units of $5,000 and provide coverage for a six-month period. When the initial bond coverage expires, employers can purchase continued bond coverage from Travelers Insurance Co., if workers demonstrated job honesty under bond coverage provided by the Federal Bonding Program. One unit of bond insurance coverage is usually sufficient to cover most job applicants.

More Information/Resources

For Job Seekers/Employers

• Federal Bonding Program Brochure
• Locate your nearest career center
• Visit the U.S. Department of Labor Federal Bonding Program website

For Career Center Staff

• Federal Bonding Program Fact Sheet
• Training Presentation: History of Bonding
• Training Presentation: The Bonding Process