The US Department of Labor (USDOL) is pleased to announce that the Federal Bonding Program (FBP) is celebrating its 50th anniversary. Created by the USDOL in 1966, the FBP has been successfully providing fidelity bonds to employers, giving them access to job seekers and opening doors of opportunity where none existed.
Thousands of employers across the country have integrated the Federal Bonding Program into their hiring practices – industries that support our country’s economy – hospitality, retail, construction, transportation, auto repair, manufacturing, healthcare, non-profits, banking, tourism and more. This USDOL program is a great success, with over 50,000 job placements made for at-risk job seekers who were automatically made bondable. The FBP, a unique hiring incentive tool, targets individuals whose backgrounds can pose significant barriers to securing or retaining employment, including:
- Previously incarcerated men, women and youth
- Individuals in recovery from substance use disorders
- Welfare recipients
- Individuals with poor credit records
- Economically disadvantaged youth and adults who lack work histories
- Individuals dishonorably discharged from the military
The Federal Bonding Program is Simple
The bonds issued by the FBP guarantee the job honesty of job seekers to employers who want to hire them. Employers receive the bonds – starting at $5000.00 value – free-of-charge as an incentive to hire these applicants; coverage is for the first six months of a selected individual’s term of employment. The FBP bond insurance was designed to reimburse the employer for any loss due to employee theft of money or property:
- NO special application form for job seeker to complete
- NO bond approval process
- NO Federal regulations covering bonds issued
- NO papers for employers to submit or sign
- NO follow-up or required termination actions
- NO deductible in bond insurance amount if employee dishonesty occurs
- NO bondee age requirements (other than legal working age in State)
Bonds can be applied to:
- ANY job
- ANY State
- ANY employee dishonesty committed on or away from the work site
- ANY full- or part-time employee paid wages (with Federal taxes automatically deducted from pay), including individuals hired by temp agencies. Self-employed people cannot be covered by Fidelity Bonds
The FBP Has Achieved a 99% Success Rate
Since its inception bonds have been activated only one percent of the time. The truth is that the Federal Bonding Program has introduced talented, dedicated and passionate employees to their employers, enabling people like:
- Susan, who after six years of incarceration, has successfully transitioned from a franchise restaurant crew member to store manager. She was recently recruited as a Transportation Specialist with a new employer who was so impressed with her that she was hired on-the-spot.
- Two returning citizens – John and Sidney – who were hired by an HVAC company and have proven to be stellar employees
- Cecil, while in prison had taken plumbing courses, and upon release successfully used the Federal Bonding Program to help secure a position as a Plumber’s Helper. He has been with his employer for over a year and will soon take the test to receive his state plumber’s license.
Federal Bonding Program Management
Union Insurance Group provides FBP management and oversight, under contract with the USDOL’s Employment and Training Administration (ETA). Union Insurance Group is a national insurance brokerage firm serving as the exclusive agent for Travelers which issues Fidelity Bonds nationwide under the FBP.