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Federal Bonding Program

In 1966 the U.S. Department of Labor established The Federal Bonding Program to provide Fidelity Bonds that guarantee honesty for "at-risk," hard-to-place job seekers. The bonds cover the first six months of employment. There is no cost to the job applicant or the employer. In most states the bonds are made available through the state agency responsible for workforce matters.

The Federal Bonding Program is a partnership between the U. S. Department of Labor and The McLaughlin Company, an insurance brokerage firm, as agent for Travelers Casualty and Surety Company of America.

To participate in this program, a job seeker must have an employer who wants to hire them but cannot, because insurance commercially purchased by employers to protect against employee dishonesty usually will not cover at-risk persons.

Eligible target groups:

  • Persons with a poor credit record
  • Welfare recipients
  • People who lack a work history
  • Ex-offender with a record of arrest, conviction or imprisonment; anyone who has ever been on parole or probation, or has any police record
  • Ex-addict who has been rehabilitated through treatment for alcohol or drug abuse
  • An individual who has been dishonorably discharged from the military
  • Self-employed persons are NOT ELIGIBLE for bonding services (bondee must be an employee who earns wages with Federal taxes automatically deducted from paycheck)

What Fidelity Bonding offers:

  • Insurance to protect employers against employee dishonesty
  • Coverage on any type of stealing: theft, forgery, larceny and embezzlement
  • A hiring incentive, eliminating bonding as an employment barrier
  • Bonds in the amount of $5,000
  • Coverage for six months while employees prove themselves
  • Continued coverage that can be obtained through Traveler's Insurance Company if no claim is made during the six-month period

Learn more:

For more detailed information and eligibility requirements, visit the Federal Bonding Program website or contact your local CareerCenter.

To speak with the Maine Department of Labor Federal Bonding coordinator, call 207-623-7981, TTY users call Maine Relay 711.