Federal Bonding Program

Wanting to hire an applicant but not sure if you should put them in a position of trust due to a criminal background check?  (For example, a theft conviction would normally bar employment where an employee would handle cash.) There is an option with the no cost Federal Bonding Program.  A bond is provided for 6 months at no cost.  After that period there is an option to purchase a bond from Travelers Insurance. The paperwork is minimal and bonds can be put in place for up to $25,000. 

Information below provided by Oregon Employment Department
FEDERAL BONDING PROGRAM IN OREGON

The Oregon Employment Department is again participating in the Federal Bonding Program. Employers receive $5,000 fidelity bonds free of charge as an incentive to hire hard-to-place job applicants. This program, sponsored by the U.S. Department of Labor, has a 99 percent success rate nationwide, as only one percent of over 40,000 workers receiving bonds proved to be dishonest.

What is Federal Bonding?

• A job placement tool
• Fidelity insurance through the McLaughlin Company, an agent for Travelers Insurance Company
• Protects employers against employee theft
• $5,000 coverage for a 6-month period (no deductible)

Types of Workers Covered

• At risk job applicants denied (or potentially denied) commercial bonding due to:
• Arrest, conviction or imprisonment
• Alcohol or drug abuse
• Poor credit history
• No employment history
• Dishonorable discharge from the military
• Any other reason that makes the job seeker “Not Bondable”

Based on the information received, the Oregon Bonding Coordinator will decide on whether a job seeker is “Not Bondable.” The hiring company is not required to first attempt to bond the job seeker through their normal commercial bonding process.

The Bond

• Free of charge to job seeker and employer
• Covers theft, forgery, larceny, or embezzlement
• Does not cover poor workmanship, injuries or accidents

Requirements for Coverage

• Firm job offer with start date (job offer can be contingent on receiving bond)
• Full-time or part-time job
• Job must have an employer-employee relationship with federal taxes automatically deducted
• Not self-employment or an independent contractor

Application Process

• The bonds will be processed by Oregon’s Federal Bonding Coordinator, an employee of the Oregon Employment Department
• Bonds can be requested by the job seeker, employer or a third party, e.g., job coach
• Once the job seeker receives a firm job offer, contact the Bonding Coordinator
• The Bonding Coordinator will ask for some basic information about the job seeker, employer and job
• If requirements are met, the Bonding Coordinator will complete the Fidelity Bond Certification Form and mail it to the McLaughlin Company
• The Bonding Coordinator will also send a confirmation letter to employer
• The bond is effective the day the job seeker starts work (The start date is entered on both the certification form and the employer confirmation letter)
• The McLaughlin Company will mail the actual Bond Certificate to the employer within 15 working days
• Neither the employer nor job seeker need to fill out any paperwork
• If the employee completes the initial six months of free bonding without issue, the employer may purchase a bond for the employee at the regular commercial rate.

GET FEDERAL BONDING FORMS

Questions ???

Doug Barrett (Oregon’s Federal Bonding Coordinator)
Oregon Employment Department
875 Union St NE
Salem, OR 97311
503 947-1680
503 947-1668 Fax
Douglas.D.Barrett@state.or.us


More information is available at the Federal Bonding web site: http://www.bonds4jobs.com/