The US Department of Labor (USDOL) created the Federal Bonding Program (FBP) in 1966. The FBP has been successfully providing fidelity bonds to employers, giving them access to job seekers and opening doors of opportunity.

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 56,500 job placements made for at-risk job seekers who were automatically made bondable. Last year, there were 1,691 bonds issued to 1,068 individuals in the program. The FBP, a unique hiring incentive tool, targets individuals whose backgrounds can pose significant barriers to securing or retaining employment, including:

  • Justice-involved citizens
  • 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

FBP bonds protect the employer against losses caused by the fraudulent or dishonest acts of the bonded employee. Examples of such acts of employee dishonesty include: theft, forgery, larceny, and embezzlement. Employers receive the FBP bonds free-of-charge as an incentive to hire these applicants. Each FBP bond has a $5,000 limit with $0 deductible and covers the first six months of a selected individual’s employment.

Advantages include:

  • NO application for job seekers to complete
  • NO papers for employers to submit or sign
  • NO formal bond approval process
  • NO Federal regulations applicable to bonds issued
  • NO follow-up or required termination actions
  • NO deductible paid if bond claim is filed by the employer
  • NO 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 worksite
  • ANY full- or part-time employee paid wages (with Federal taxes automatically deducted from pay), including individuals hired by temp agencies. In cases where the employee is hired direct or placed by a temp agency, the bond works to protect the business from fraudulent acts committed by the employee. *Self-employed people cannot be covered by Fidelity Bonds

“I’ve been with the State Workforce Development Division for over two decades, and the FBP is the simplest tool in our workforce development toolkit to operate; in terms of cost, time and paperwork, it’s a win/win/win for State staff, employers and clients.”


-Mark Olds, Hawaii Bonding Service Coordinator

Call Center Employees

Employer/Employee Success

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). Insurance is offered by Union Insurance Group. This insurance is underwritten and provided by ACE American Insurance Company and its U.S. based underwriting company affiliates. Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services.

For a list of these subsidiaries, please visit All products may not be available in all states. This communication contains product summaries only. Coverage is subject to the language of the policies as actually issued. Chubb, 202 Hall’s Mill Road, Whitehouse Station, NJ 08889-1600