Employers

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Fidelity Bonding Program

• EmployersSECURITY
• Job Seekers OPPORTUNITY

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Presentation Content

• We will cover
• What is Fidelity Bonding
• Who is eligible
• Amounts and durations of bonds
• How to apply

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FLASHBACK

• Fidelity Bonding History
• Jobseekers who have in the past committed a
  fraudulent or dishonest act, or who have
  demonstrated other past behavior which casts
  doubt upon their credibility or honesty, often
  experience a special barrier to gaining
  employment due to their personal backgrounds.
• Ex-offenders experienced high levels of
  unemployment leading to repeat incarcerations

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FLASHBACK

• Fidelity Bonding History
• Such persons are routinely classified as
  "at-risk" job applicants. More specifically,
  employers view these applicants as being
  potentially untrustworthy workers. As a result,
  at-risk job applicants are routinely denied
  employment.
• This factor and others provoked the U.S.
  Department of Labor (DOL) to create the Federal
  Bonding Program (FBP) that would cover anyone who
  was at- risk and formerly classified as NOT
  BONDABLE.

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What is the Federal Bonding program
What is a Fidelity Bond?

• It is a unique tool to help a job applicant get
  and keep employment. It provides employers with a
  special incentive to hire the hardest to place
  Job Seekers.
• The program issues Fidelity Bonds and is
  sponsored by DOL.

• It is a business insurance policy that protects
  the employer in case of any loss of money or
  property due to employee dishonesty.
• It is like a guarantee to the employer that the
  person hired will be an honest worker.

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Who is Eligible??
Bond Coverage is provided for any persons whose
background Usually leads employers to question
their honesty and deny them a job.

• Ex-Offenders
• Substance Abusers
• Poor Credit Record
• Dishonorable Discharge
• Persons Lacking a Solid Work History
• Disadvantage Youth
• Anyone else who needs the programs bond in order
  to get a job.

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Criteria used to determine who is eligible for
a fidelity bond?

• Employers insurance coverage prohibits insuring
  a particular applicant
• When employers insurance carrier removes
  coverage on a current non-bondable employee
• Determined necessary if something of the
  applicants past leads to a question of job
  honesty

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What exactly does the bond cover?

• It insures the employer for any type of
• stealing by theft, forgery, larceny or
• embezzlement.
• It dos NOT cover liability due to
• Poor Workmanship
• Job Injuries
• Work Accidents

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Which employers can obtain a fidelity
bond?(Requirements to bond Applicants )

• Any employer where Federal taxes are
  automatically deducted
• Any individual where bonding will secure
  employment
• The employer must have a specific date set for
  the applicant to begin work
• The applicant must be of legal working age
• At least 30 hours per week of employment
• Self-employed persons or family member-workers
  cannot be covered by a fidelity bond

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Amounts and durations of bonds

• The bond is FREE!! It does not cost the employer
  or job seeker anything
• Bonds are issued in increments of 5000
• The Maximum amount available is 25,000
• The Coverage is for six (6) months from the first
  day of employment. (bond is automatically
  terminated after Six months)
• Regular employer insurer should then cover the
  employee
• Travelers Property Casualty Insurance Company
  does offer coverage for purchase after expiration
  of bond
• No unexpected policy terminations

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How to apply

• A valid job offer must exist before the
  application process is initiated.
• Employer contacts the Fidelity Bonding
  Representative to request a bond for someone they
  have offered employment
• The Bonding Representative collects info from the
  employer
• The Bonding Representative completes paperwork
  mails materials to insurer
• Bond coverage is recorded for when the employee
  begins working
• After bond issuance, McLaughlin
• sends insurance policy to employer

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MARKETING TIPS For Employers

• The employer gets the workers skills and
  abilities without taking the risk of potential
  theft or dishonesty
• No paper work for employers
• No follow up
• No deductible in bond insurance amount if
  employee dishonesty occurs
• Provides reimbursement for any loss due to
  employee theft within the specified six-month
  period.
• No unexpected policy Terminations
• No termination of Bond actions required

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MARKETING TIPS For Job Seekers

• Provides job opportunities to seekers who have
  been or may be denied commercial bonding coverage
  due to their previous personal or employment
  history
• Promotes confidence in a job seekers who needs a
  break to participate in employment and needs a
  chance to show that she /he can be a productive
  worker.
• No cost to the job seeker
• Applies to any job except self employment
• Job seekers may want to carry program brochures
  with them during job search

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Success of the Fidelity Bonding Program

• Over 40,000 applicants have obtained jobs due to
  fidelity bonding
• 99 have proven to be honest
• Texas reported saving the state 10 million due
  to program success
• New York State found that having a job helps
  prevent a parolee from returning to prison. The
  fact is that 89 of persons who violated parole
  were unemployed at the time.

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Contact Information Additional Resources

• Local Bonding Representative
• Greg Flood Sr. [phone]
• Laneice McGee [phone]

• If you have internet access, visit the following
  websites
• http//www.dwd.state.wi.us/dws/programs/bonding
• www.bonds4jobs.com

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Questions?

• The End