Workforce Resources 101: Federal Bonding Program
Thursday, March 28, 2019
What is it?
The Federal Bonding Program provides a business insurance policy to protect employers who hire "at-risk" individuals that can be hard-to-place in the workforce. This fidelity bond covers loss of money or property that is due to employee dishonesty such as theft, larceny, forgery or embezzlement.
Who does it cover?
The program covers individuals involved in the justice system, those in recovery from substance abuse, Temporary Assistance to Needy Families (TANF) recipients, those with poor credit, economically disadvantaged individuals without work history, and dishonorably discharged military.
What doesn't it cover?
Poor workmanship liability, job injuries, work accidents, bail bond, contract bond, performance or license bond, or theft and damage of motor vehicles.
What are the requirements?
· The minimum bond available is $5,000 with a max of $25,000 per person, depending on the type of job
· The bond will be effective for 6 months, starting on the employee's start date
· There are no limits on the number of bonds per company
· Employee must be a US citizen
· Federal taxes must be withheld
· The individual can not be self-employed or a relative of the employer
· Must be legally authorized to perform the job
· The individual must have a job offer and a start date
What are the benefits?
· Employers have more confidence hiring from a diverse and expanded labor pool.
· Employers have peace of mind in hiring.
· Self-sufficiency of the individual benefits the local economy.
· Less recidivism (also good for the local community).
· Job applicants can market themselves and increase employment prospects.
There is no cost to the employer, no deductible, and no paperwork.
Over 52,000 applicants have been helped through the program. 99% of them proved to be honest employees and are contributing to industries who support the nation's economy.
How is one requested?
Contact your state Federal Bonding Program Coordinator (Iowa: Richelle Seitz, 515-725-3891, firstname.lastname@example.org) who will verify information, complete the bond form online and submit to Union Insurance Group.
The bond policy is sent to the employer within 10 business days by Union Insurance Group, broker for Chubb Insurance.
Category: Blog, Workforce, Workforce Development,