Employers considering hiring “at risk” workers are encouraged to take advantage of a federal program designed to protect them against employee theft or dishonesty.
How It Works
Federal Bonding provides FREE individual fidelity bonds to employers when they hire “at risk” individuals, who traditionally have had difficulty finding meaningful employment. Employers receive $5,000 in coverage for the first six months of employment. The coverage protects the employer from acts of dishonesty such as theft, larceny or embezzlement.
Eligible individuals include the following:
- Individuals with a history of arrest or conviction.
- Individuals with a history of substance abuse.
- Individuals with poor credit or who have declared bankruptcy.
- Individuals with a dishonorable discharge from the military.
- Individuals lacking sufficient work history.
Requirements & Limits:
- There must be an Employer/Employee relationship.
- The Employer must be deducting all required federal and state income taxes from pay.
- The employee must be receiving a W2 at the end of the year (No 1099 or contract workers).
- Self-employed individuals are NOT eligible for the Federal Bonding Program.
- Bond must be established prior to the first day of work.
Steps to establish a bond:
- The Employer contacts an NCWorks Career Center or the Federal Bonding Coordinator.
- Staff complete the Federal Bonding Certification form.
- Staff send the form to the Federal Bonding Coordinator.
- Staff send employer a letter confirming the bond has been processed.
- The Federal Bonding Coordinator processes the bond, applies a Bonding Stamp, and mails form to Union Insurance Group.
- Employer receives a packet from Union Insurance Group with instructions on how to file a claim if necessary.
While it must be the employer who establishes the bond, job seekers can request a Federal Bonding Eligibility Letter from the Federal Bonding Coordinator or their NCWorks Career Center for use when applying for employment.
For More Information
Employers and job seekers can contact the NC Federal Bonding Program Coordinator for more information by emailing DWS_Re-Entry@nccommerce.com.
More information can also be found on the Federal Bonding website: www.bonds4jobs.com.