Federal Bonding Program

The Federal Bonding Program provides important support for justice-involved individuals and other challenged job seekers, helping them secure employment and stay employed.

• Insurance to protect employer against employee dishonesty
• Covers any type of stealing: theft, forgery, larceny, and embezzlement
• In effect, a guarantee of worker job honesty
• An incentive to the employer to hire an at-risk job applicant
• A unique tool for marketing applicants to employers
• DOES NOT cover "liability" due to poor workmanship, job injuries, work accidents, etc.
• Is NOT a bail bond or court bond needed in adjudication
• Is NOT a bond needed for self-employment (contract bond, license bond or performance bond)

• Any at-risk job applicant is eligible for bonding services, including: ex-offenders, recovering substance abusers (alcohol or drugs), welfare recipients and other persons having poor financial credit, economically disadvantaged youth and adults who lack a work history, individuals dishonorably discharged from the military, and others
• Anyone who cannot secure employment without bonding
• All persons bonded must meet the legal working age set by the State in which the job exists
• Self-employed persons are NOT Eligible for bonding services (bondee must be an employee who earns wages with Federal taxes automatically deducted from paycheck)
• Bonds can be issued to cover already employed workers who need bonding in order to (a) prevent being laid off, or (b) secure a transfer or promotion to a new job at the company
• Bonding coverage can apply to any job at any employer in any State

The following businesses may NOT request a federal bond:

• Gun Shops
• Cannabis (growers, manufacturers or retailers)
• Self-employed individuals
• Temp Agencies – the temp agency may notify the employer who is filling the position with the at-risk applicant.  The employer may bond the individual. The temp agency may not be the bond holder unless the at-risk hire is employed/on the payroll of the temp agency.

Issuance of the bond for job placement to occur can be requested by either the employer or the job seeker. Bonds requested by the job applicant must be made only when the applicant has a job offer and a point of contact can be established with the employer. Bonds are issued to the employer and not to the potential employee.

If you were convicted of a felony, please contact Workforce Consultant:
John Lamb at jlamb2@mt.gov in our Billings Job Service Center Office for assistance.

Hard copy letters may be mailed to:

• MTDLI Job Service, attention: John Lamb, 2121 Rosebud Drive, Stop B, Billings, MT 59102

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 job start date will be effective date of the bond insurance which will terminate six months later. After the six months, continued coverage will be made available for purchase if the worker has exhibited job honesty under the program's bond.

A total of $5,000 bond coverage is usually issued, with no deductible amount of liability for the employer. Larger bond amounts can possibly be issued by "stacking" bonds if the certified agency issuing the bonds has sufficient quantity of promotional bonds available, and has determined that larger bond amounts are appropriate. When this bond coverage expires, continued bond coverage can be purchased from TRAVELERS by the employer if the worker demonstrated job honesty under coverage provided by The Federal Bonding Program. In addition, employers may receive up to a $2400 - $9000 tax credit for hiring an individual who has been convicted of a felony and/or released from incarceration or another WOTC targeted program. For more information, go to: Tax Credits

The initial Fidelity bond is issued for a six-month period.

• Chery Sabol, 406-218-7400, csabol@mt.gov, Interim Montana Federal Bonding Coordinator  
• Your Local Job Service
• Federal Bonding Program Overview: http://bonds4jobs.com/