Fidelity Bonding Services

This innovative activity delivers a unique helping service that is not duplicated by any other program in the U.S. to secure the job placement of ex-offenders and other high-risk job applicants . . . by providing employers with a special incentive to hire the hardest-to-place jobseekers. It has a proven track record . . . U.S. Department of Labor, Training and Employment Information Notice No. 5-98, August 3, 1998

Is the lack of bonding coverage preventing you from working or hiring someone?

WE CAN HELP!

The Texas Workforce Commission, in collaboration with Local Workforce Development Boards, offers free fidelity bonding services designed to eliminate bonding as a barrier to employment and alleviate employer concerns about hiring "at-risk" job applicants. This is accomplished through the issuance of an insurance policy by Travelers Property Casualty Insurance Company, which protects the employer against employee acts of dishonesty such as larceny, embezzlement, and theft.

Important features of this service:

• Free bonding coverage is provided for a six-month period; thereafter, it can be renewed through the regular commercial network.
• The bond reimburses the employer for any property or monetary loss due to employee dishonesty.
• Coverage is usually issued in the amount of $5,000.
• There is no deductible amount, so you have 100 percent coverage!
• There are no forms for the employer or job applicant to fill out and no processing; coverage can be activated almost immediately.

The fidelity bonding service will provide assistance to employers considering an at-risk job applicant. This includes the following individuals, whose backgrounds may lead employers to deny them a job:

• Ex-offenders, including individuals with records of arrest, probation, or any police record
• Applicants with poor credit histories including bankruptcy
• Veterans dishonorably discharged from the military
• Public assistance recipients
• Applicants with a substance abuse history

In addition to the aforementioned groups, any individual who is declined fidelity bonding through the commercial bonding system is eligible for this free service. Fidelity bonds cover a specific employer-employee relationship, which is evidenced by the deduction of withholding taxes and social security. A fidelity bond will not provide coverage for self-employed individuals looking for a performance bond, surety bond, or contract bond. A fidelity bond does not provide coverage for poor workmanship, job injuries, or work accidents.

The employer or the job applicant may request fidelity bonding assistance. If the availability of a bond will assist with a hiring decision, contact the Workforce Solutions office nearest you.

For additional information please email fidelity.bonding@twc.state.tx.us