“I’ve got an income. That feels good…”
President Barack Obama talks about his plan for faith based community programs, including Ready4Work, in Zanesville, OH on July 1, 2008.
Since 1966, The Federal Bonding Program, sponsored by the U.S. Department of Labor, has been successful as a unique job placement tool for at-risk job applicants. The program’s fidelity bonds provide insurance guaranteeing job honesty and serve as an effective employer incentive for hiring hard-to-place job seekers.
Hard-to-place job seekers include ex-offenders, welfare recipients, individuals with a history of substance abuse, individuals who have been dishonorably discharged, disadvantaged youth and others with barriers to employment. This program is offered at no cost to the job applicant or the employer. This tool has been effective in improving job placement services.
Bonds will only be issued when the employer confirms that the job seeker will be hired.
Bonds are issued instantly to be in effect the day that the applicant is scheduled to start work; the bonds are self-terminating (no termination paperwork needed), and the employer does not sign any papers in order to receive the bond free of charge
The bond insurance issued ranges from $5,000 to $25,000 in coverage for a 6-month period with no deductible amount (employer gets 100% insurance coverage). When this bond coverage expires, continued bond coverage can be purchased from TRAVELERS by the employer if the worker demonstrated job honesty under coverage provided by The Federal Bonding Program.
The Federal Bonding Program is a partnership between the U.S. Department of Labor and The McLaughlin Company, as an agent for Travelers Casualty and Surety Company of America; referred to hereafter as TRAVELERS.