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Federal Bonding Program

The Federal Bonding Program is a hiring incentive that provides employers $5,000 of Fidelity Bond insurance for a six-month period at no cost and no deductible for at-risk job seekers. After six months, employers can buy additional bonding if the worker has demonstrated job honesty. This bonding service offers employers a unique job placement tool to assist ex-offenders and other at-risk/hard-to-place job applicants including, but not limited to:

  • Ex-offenders with a record of arrest, conviction, imprisonment or a police record, or on parole or probation.
  • Recovering substance abusers (alcohol or drugs) or individuals who have been rehabilitated through treatment for alcohol or drug abuse.
  • Welfare recipients, individuals with poor credit history, or individuals who have declared bankruptcy.
  • Economically disadvantaged youth and adults who lack a work history.
  • Individuals dishonorably discharged from the military.

Federal Bonding Program Information (PDF) 

Eligibility and Requirements

  • Workers must meet the state’s legal working age (Arizona – 16 during school hours or 14 outside of school hours). There are no maximum age limits.
  • Federal taxes must be automatically deducted from the worker’s pay. Self-employment is not covered.
  • The bond is issued to cover workers who obtain permanent part time or full time jobs. Some exceptions may be made to accommodate the employer’s needs.

How to apply?

When an employer makes a job offer to an ex-offender, at-risk, or hard-to-place job applicant and the job is accepted, the employer must submit information to the DES Federal Bonding Coordinator that confirms the worker's identity, the offer of employment, job title, work location, start date, salary, and hours of work per week.

Complete application

View more information on the Federal Bonding Program.

Frequently Asked Questions (FAQs)

Who can request a bond?

Any authorized representative from a hiring company can request a Federal bond using the Federal Bonding Request web form on the DES website.

How much do Federal Bonding Program (FBP) bonds cost?

The first bond for each employee is free when requested through the state. The company is responsible for the cost of all bonds after the first. Each bond costs $100, regardless of how many bonds are purchased.

What does the bond cover?

The FBP bonds are designed to reimburse the employer for any loss due to employee theft of money or property and covers any type of stealing: theft, forgery, larceny, and embezzlement, as long as the employee intends to cause the employer a loss and personally gain from his or her actions. Does not cover “liability” due to poor workmanship, job injuries, work accidents, etc.

Can FBP bonds be issued to cover someone who is already employed?

A bond can be issued to cover a current employee who is not bondable under the employer's insurance, and needs the program's bonding in order to secure a promotion to a new job requiring bonding or to prevent a layoff.

Do FBP bonds expire?

Bonds no longer have expiration dates after purchase.

How will my company receive the bond once it’s issued?

A hard copy of the bond is mailed directly to the Employer’s address provided on the request.

How is a bond effective date determined?

For the bond to be issued, the employer must make the applicant a job offer and set a date for the individual to start work. The bond becomes effective on the day the new hire starts the job.

The effective date can only be back-dated up to 6 months to their start date. (i.e. Mary starts 1/1/23 but her job requests a bond 5/1/23. Mary’s bond effective date is still 1/1/23 and she is only covered until 6/1/23.)

Is there a way to expedite a bond certificate if it is needed sooner?

Contact Tom Villanova, program manager with the Bond issuing company, and he will work with you on a case-by-case basis.

Will I always need to buy a Federal Bond for this employee?

Employees can ultimately become commercially bondable by demonstrating job honesty during the six months of bond coverage under the Federal Bonding Program. This is subject to review and approval by the insurance companies that the company is purchasing fidelity insurance through.

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