Sources:
http://www.doleta.gov/wtw/documents/fedbonding.cfm
http://www.doleta.gov/usworkforce/onestop/FBP.htm

For More Information Contact:
Jackie Wiggins
Maryland Job Service, Baltimore City
1100 N. Eutaw St.
Baltimore, MD 21201
410-767-2022

The Federal Bonding Program, sponsored by the U.S. Department of Labor, serves as a tool to secure the job placement of ex-offenders and other high-risk applicants by issuing Fidelity bonds. These bonds are business insurance policies that protect the employer in case of any loss of money or property due to employee dishonesty. It is a “guarantee” to the employer that the person hired will be an honest worker. The Fidelity Bonds issued are insurance policies from the Travelers Property Casualty insurance company. The McLaughlin Company in Washington, DC is the agent for Travelers in managing the program nationwide.

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 employ the worker without taking any risk of dishonesty on the job. It insures the employer for any type of stealing by theft, forgery, larceny, or embezzlement.

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.

Qualifications

• The worker must meet the State’s legal age for working.
• The job should be for at least 30 hours work per week. Workers must be paid wages with Federal taxes automatically deducted from pay.
• The program will cover any person who is a “risk” due to their being in one or more of the following groups:
  • Ex-offenders with a record of arrest, conviction or imprisonment; anyone who has ever been on parole or probation, and/or anyone who has a police record.
  • Ex-addicts who have been rehabilitated through treatment for alcohol and drug abuse.
  • Anyone with a poor credit record or declared bankruptcy.
  • Persons lacking a work history who come from families with low income.
  • Anyone dishonorably discharged from the military.
  • Anyone who has committed a fraudulent or dishonest act in the past.

Restrictions

• The bond will not cover liability due to poor workmanship, job injuries, or work accidents.
• Self-employed persons cannot be covered.

How to Apply

1. 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 the effective date of the bond insurance which will terminate six months later. Once the date is set for the applicant to start work, the bond can be issued instantly. The employer does not need to sign any papers or keep special records because the bond self-terminates. The bond is mailed directly to the employer by The McLaughlin Company in Washington, DC as agent for Travelers.
   
2. 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. Employers can contact Jackie Wiggins at 410-767-2022. Employers who hire through the Baltimore Mayor’s Office of Employment Development, contact Gerald Grimes at 410-396-6580. Contact Craig Lewis at the Eastside One-Stop Career Center at 410-396-9035.