further information?

Please feel free to contact ESD at 1-800-339-3981.

The requestor of the Bond should contact the nearest WorkSource Center and talk with a WorkSource Specialist. The requestor can also contact the State Bonding Coordinator at 800-339-3981 or 360-902-9685.

WorkSource Everett, Youth Center and Serve Center
3201 Smith Ave Everett, WA 98201
WS Everett, Suite 330
Tel: (425)258-6300

Hours: Monday, Tuesday, Wednesday, Friday 8am-5pm
Thursday 9am-5pm

Workforce Snohomish
808 - 134th Street S.W., Suite 105
Everett, WA 98204
425.921.3423 
425.921.3484 (Fax)

 The Federal Bonding Program (FBP)

The US Department of Labor (USDOL) created the Federal Bonding Program (FBP) in 1966. 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. The FBP has been successfully providing fidelity bonds to employers, giving them access to job seekers and opening doors of opportunity where none existed.

Thousands of employers across the country have integrated the Federal Bonding Program into their hiring practices – industries that support our country’s economy – hospitality, retail, construction, transportation, auto repair, manufacturing, healthcare, non-profits, banking, tourism and more. This USDOL program is a great success, with over 50,000 job placements made for at-risk job seekers who were automatically made bondable. The FBP, a unique hiring incentive tool, targets individuals whose backgrounds can pose significant barriers to securing or retaining employment, including:

  • Previously justice-involved citizens
  • Individuals in recovery from substance use disorders
  • Welfare recipients
  • Individuals with poor credit records
  • Economically disadvantaged youth and adults who lack work histories
  • Individuals dishonorably discharged from the military

What is the Washington Bonding Program?

This program provides, at no cost to the employer or applicant, individual fidelity bonds to employers for applicants who are, or may be, denied coverage by commercial carriers because of their at-risk status. The fidelity bonds issued by the WBP function as an employer job-hire incentive. These bonds come from the Travelers Insurance Company and provide employers protection against employee dishonesty. The bond insurance covers any loss resulting from any form of stealing by employees, including theft, forgery, larceny and embezzlement. It 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, nor is it a contract bond, performance bond or license bond necessary to be self employed. What is maximum and minimum coverage under the Washington Bonding Program?
A. The minimum coverage is $5000.00 up to a maximum of $25,000.00 issued in $5000 increments. In most cases, the program issues $5,000.00 in coverage with no deductible for the employer. In special cases, the program may issue bonds at higher amounts. What paperwork must the employer sign? What other actions must the employer take in order to get the bond? None. Once the date is set for the applicant to start work, the program issues the bond. The employer signs no papers, and keeps no special records since the bond will end after six months. Any bonds issued over $15,000.00 require authorization from the State Bonding Coordinator.

The Federal Bonding Program is Simple

The bonds issued by the FBP guarantee the job honesty of job seekers to employers who want to hire them. Employers receive the bonds – starting at $5000.00 value – free-of-charge as an incentive to hire these applicants; coverage is for the first six months of a selected individual’s term of employment. The employer must offer the applicant a job and set a date for the worker to start employment. The employment start date is the effective date of the bond insurance, which will terminate six months later. Who can request the fidelity bond? The employer of record, the job applicant or the job placement agency can request a bond. The request can be made by phone, e-mail or completing the Bond Certification Form.The FBP bond insurance was designed to reimburse the employer for any loss due to employee theft of money or property:

  • NO special application form for job seeker to complete
  • NO bond approval process
  • NO Federal regulations covering bonds issued
  • NO papers for employers to submit or sign
  • NO follow-up or required termination actions
  • NO deductible in bond insurance amount if employee dishonesty occurs
  • NO bondee age requirements (other than legal working age in State)

Bonds can be applied to:

  • ANY job
  • ANY State
  • ANY employee dishonesty committed on or away from the work site
  • ANY full- or part-time employee paid wages (with Federal taxes automatically deducted from pay), including individuals hired by temp agencies. Self-employed people cannot be covered by Fidelity Bonds
 
All of the information provided on this page and logo comes from the bonds4jobs website.