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.

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 jobs providing at least 30 hours of work per week. 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 send a letter to the DES Workforce Administration Federal Bonding Coordinator that confirms the worker’s identity, offer of employment, job title, work location, start date, salary, and hours of work per week. The letter must be sent to:

Bonding Services Coordinator 
Employment Administration
Arizona Department of Economic Security
P.O. Box 6123
Site Code 734T