The Federal Bonding Program, sponsored by the U.S. Department of Labor, offers fidelity bonding insurance protection to employers who hire individuals who are considered to be at-risk or hard to place because of:

  • History of arrest, conviction or incarceration
  • History of substance abuse
  • Poor credit history, i.e. bankruptcy
  • Lack of employment history (e.g. youth, displaced homemaker)
  • Dishonorable discharge from the military
  • Special situations requiring a fidelity bond

The Federal Bonding Program is NOT a guarantee of hire. It is an incentive to employers. Eligible individuals will be issued a Letter of Eligibility which they will use when they go on job interviews to let the employer know that they have been determined eligible for the program.

Once an employer agrees to hire an individual and gives a firm first day of work, the employer must contact the State Bonding Coordinator. The fidelity bond insures the business against stealing by theft, larceny, embezzlement or forgery

Eligible individuals receive their Letter of Eligibility from a Local Bonding Coordinator located at a One-Stop Career Center.

Frequently Asked Questions

What is a fidelity bond?
It is a business insurance policy that protects the employer in case of any loss of money, products or equipment due to employee dishonesty. The Fidelity Bonds issued under the Federal Bonding Program are insurance policies of the Travelers Property Casualty Insurance Company. The McLaughlin Company in Washington, DC is the agent managing the program nationally.
How does the bond help someone get a job?
The bond is provided to the employer free-of-charge for six months, and is offered to encourage the company to hire a job applicant who is an ex-offender or has some other “risk” factor in his/her personal background. The employer is able to hire the individual without taking any risk of worker dishonesty on the job.
What does the bond insurance cover?
It insures the employer for any type of stealing by theft, forgery, larceny, or embezzlement. The bond is for $5,000. It does not cover liability due to poor workmanship, job injuries or work accidents. It is not a bail bond or court bond for the legal system. It is not a contract bond, performance bond, or license bond sometimes needed to be self-employed. Self-employed persons cannot be covered.
What are the restrictions?
The worker must meet the State’s legal age for working; there are no other age limits. The job must be for at least 30 hours work per week. Workers must be paid wages with Federal taxes automatically deducted from pay.
Can the bond be issued at any time?
For the bond to be issued, the employer must offer a job to the applicant and set a date for the individual to start work. The job start date will be the effective date of the bond insurance. The insurance policy will terminate six months later. Employment must be verified by the State Bonding Coordinator for the bond to be issued.


Glen Burnie: Andre James
Annapolis: Lue Isaac

Anne Arundel Workforce Development Corporation
401 Headquarters Drive (Suite 208)
Millersville, MD 21108 (410.987.3890)

The Anne Arundel Career Center system and all AAWDC programs are equal opportunity, affirmative action, Title IX, and ADA Title 504 compliant.
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