Federal Bonding Program

About This Program

The Federal Bonding Program removes one of the most common barriers to employment for people with criminal records, histories of addiction, or other factors that make employers hesitant to hire them. The program provides free fidelity bonds — insurance policies that protect employers against financial losses caused by employee dishonesty — to employers who hire hard-to-place workers. The employer incurs no cost; the bond is provided free by the Department of Labor for the first six months of employment. The bond covers the first $5,000 of a loss, and a higher bond amount (up to $25,000) can be purchased at low cost if needed. The bond period begins on the first day of employment. There are no restrictions on the type of job or industry — the bond can be used for any legitimate employment. Eligible job seekers include people with criminal records, individuals with histories of alcohol or drug abuse, youth with work history problems, ex-offenders, welfare recipients, economically disadvantaged individuals, people with poor credit histories, and anyone else who is considered a high risk by an employer due to past behavior or circumstances. To access the Federal Bonding Program, visit an American Job Center (workforce center) near you. A job developer at the American Job Center can issue bonds on the spot to job seekers, with no paperwork required from the employer. Bonds can be requested before or after a job offer — the process is designed to be simple enough that it removes the barrier without adding friction to the hiring process.

Eligibility Requirements

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