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.

Currently, bonding services are being delivered through your local CareerCenter.  

Eligible target groups:

• 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
• Persons with a poor credit record or have declared bankruptcy
• Persons lacking a work history who are from families with low income

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 (a higher amount is available if necessary)
• 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 Web site or contact your local CareerCenter.

To speak with the Maine Department of Labor Federal Bonding coordinator, call 207-623-7981, TTY: 1-800-794-1110.