Arizona Department of Economic Security
Your Partner for a Stronger Arizona
English Arabic French Persian Spanish Swahili Ukrainian Vietnamese

Main menu

Federal Bonding Program

The Federal Bonding Program helps employers hire job seekers who may face barriers to employment.

The program provides employers with free Fidelity Bond insurance for six months. The bond covers up to $5,000 and has no deductible.

After six months, employers can choose to buy more coverage if the employee has shown honesty on the job.

This program helps employers feel more confident hiring people who may be considered at risk, including:

  • People with a criminal record or who are on parole or probation
  • People recovering from alcohol or drug use
  • People who receive public assistance, have poor credit, or have filed for bankruptcy
  • Youth and adults with little or no work history
  • Individuals who were dishonorably discharged from the military

The program supports second chances and helps more people get back to work.

Read the Federal Bonding Program Information flyer.

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 offers a job to an eligible worker and the worker accepts, the employer must send information to the DES Federal Bonding Coordinator.

The employer must confirm the worker’s identity and provide the job title, work location, start date, pay, and hours per week.

Apply Now

View more information about 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 Federal Bonding Program protects employers if an employee steals money or property on purpose. It can cover losses from theft, forgery, or embezzlement when the employee meant to take something for personal gain.

The bond does not cover poor work, mistakes, accidents, or job injuries.

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?

After six months of bond coverage, an employee may qualify for regular commercial bonding if they show honesty on the job.

Final approval depends on the insurance company that provides the employer’s coverage.

Back to Top