Skip to main content

Federal Bonding Program

The U.S. Department of Labor’s Federal Bonding program offers a proven and effective tool for workforce development professionals to help both employers and at-risk job applicants at no cost.

Many employers carry insurance to protect themselves against employee theft or dishonesty. Employees who handle money, valuable tools, or goods are covered. This insurance is called fidelity bonding. When such commercial insurance is denied because of an individual’s background, the employer often denies a job to that person.

Understanding Federal Bonding

The Federal Bonding Program provides individual fidelity bonds to employers for job applicants who are deemed unbondable by commercial carriers because of a:

  • Record of arrest, conviction, or imprisonment and other justice-involved people,
  • History of alcohol, drug or other substance abuse,
  • Poor credit history or utilize public assistance,
  • Lack of employment history or poor work history,
  • Dishonorable discharge from the military.

Fidelity bonding may be provided for any individual who is qualified for a job and would otherwise be offered a job:

  • Has a firm job offer and is qualified for the job
  • And if the job:
    • Offers steady work with a reasonable expectation of permanence
    • Is not self-employment.

The Bond does not cover liability due to poor workmanship, job injuries, or work accidents. It is not a bail bond or court bond for the legal system. It is not a contract bond, a performance bond, or a license bond sometimes needed to be self-employed.

Bonds are issued in the amount of $5,000 (or up to $25,000 in certain circumstances) and are available at no cost to employers or job seekers. The applicant is covered for the first six months of employment, but the employer may then purchase additional coverage if they desire.

This is truly a Win-Win for both the employer and jobseeker! The employer gets a good employee and some peace of mind while giving a motivated jobseeker a chance.

How To

  1. Visit to learn more about the program
  2. Create a profile and register online
  3. Ensure you have the right information needed to request a bond to be issued or purchase a bond

Additional information

View our Federal Bonding brochure with instructions for getting more information.

Point of Contact

Sherry Baker
(405) 557-5421

Back to Top