The Federal Bonding Program provides free fidelity bonds to employers who hire job applicants with barriers to employment, including individuals with criminal records, those in recovery, and other at-risk populations. Texas employers may access free bonds through Workforce Solutions offices, eliminating the bonding barrier that prevents some qualified workers from being hired.
How the Federal Bonding Program Works
The program provides fidelity bonds that protect employers against employee dishonesty losses. Bonds are issued at no cost to either the employer or the worker for the first six months of employment. After six months, employers may purchase continued bonding through commercial insurance if desired.
Key Features
- Bond amount: $5,000 to $25,000 per employee
- Duration: Six months at no cost
- Cost: Free to both employer and employee
- Coverage: Protects against employee theft, forgery, larceny, and embezzlement
Who Can Be Bonded
The program covers job applicants who have difficulty obtaining employment due to criminal records, substance abuse history, poor credit, lack of work history, dishonorable military discharge, or other barriers. Any worker whose background makes an employer hesitant to hire may be eligible for bonding.
WOTC Stacking Opportunity
Many workers eligible for the Federal Bonding Program also qualify for WOTC tax credits. Employers who hire bonded workers may claim WOTC credits of $1,200 to $9,600 per qualifying hire, stacking the bond protection with tax credit savings.
How Texas Employers Access Bonds
Contact your local Workforce Solutions office to request a Federal Bond for a specific new hire. The process is straightforward and bonds are typically issued within 1-2 business days. Workforce Solutions staff can also identify additional workforce programs available for the same hire.
Find More Programs for Your Business
The Federal Bonding Program for Texas Employers is just one of many programs that Texas businesses may be eligible for. Federal, state, and local governments offer a range of grants, tax credits, loans, and incentives.
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