Presentation on theme: " This is a U.S. Department of Labor program. Offers a proven and effective tool for workforce development professionals to help both employers and."— Presentation transcript:
This is a U.S. Department of Labor program. Offers a proven and effective tool for workforce development professionals to help both employers and at-risk job applicants at no cost. o Note: The program has bonded over 42,000 at-risk job applicants in jobs with a 99 percent success rate. What is the Federal Bonding Program?
Many employers carry insurance to protect themselves against employee theft or dishonesty. Employees who handle money, valuable tools or goods are covered. This insurance is called fidelity bonding. When such commercial insurance is denied because of an individual’s background, the employer often denies a job to that person.
The Federal Bonding Program provides individual fidelity bonds to employers for job applicants who are deemed un-bondable by commercial carriers because of a: o Record of arrest, conviction, or imprisonment o History of alcohol or drug abuse o Poor credit history o Lack of employment history o Dishonorable discharge
Bonding helps jobseekers experiencing difficulty in securing opportunities to show they can be productive workers. At-risk job applicants increase their options for and chances of employment when they can offer the bonds to employers. Bonding eliminates one of the main barriers to employment, enabling jobseekers to make a new start and level the playing field.
As an employer incentive, bonding helps eliminate financial risk to employers. It insures the employer for any type of stealing by theft, forgery, larceny or embezzlement. An employer can focus on the worker’s skills, abilities and knowledge. The employer fills out no forms and signs no documents. What’s more, the bond is effective immediately— on the first day of employment—at no cost to the employer or job applicant.
Bonding is a unique and innovative tool to market applicants to employers. Bonding helps improve a Center’s efficiency since fewer referrals are needed to secure job placements, and it increases a Center’s credibility with employers.
Fidelity bonding may be provided for any individual who: o Has a firm job offer, and o Is qualified for the job. and if the job… o Offers steady work with reasonable expectation of permanence, and o Is not self-employment.
Either the job applicant or the prospective employer (on behalf of the applicant) may apply for fidelity bonding insurance at any Workforce Center. The on-line application process, completed by Workforce staff, is simple and quick.
Fidelity Bond Certification Form Available on Inside OESC
Bonding coverage becomes effective immediately when: o The OESC Bonding Coordinator has certified the bond. o The applicant has begun work.
Coverage usually begins on the first day of work for the new employee. The bond is mailed directly to the employer by the McLaughlin Company. Bonds are issued for six months. The employer may then contact the McLaughlin Company directly to purchase additional bond coverage. A total of $5,000 bond coverage is usually issued, with no deductible amount of liability for the employer.
The Bond 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.
Federal Bonding is a job placement tool. Any at-risk job applicant is eligible for bonding services, thereby enabling jobseekers to level the playing field. As an employer incentive, bonding helps eliminate financial risk to employers. Bonds are available at no cost to employers or jobseekers.
Bonding is a unique and innovative tool to market applicants to employers. Completing the one-page certification form takes just a few minutes. The applicant is covered on the first day of steady employment. The applicant is covered for the first six months of employment, but the employer may then purchase additional coverage directly from the McLaughlin Company.
Contact: David Slimp, 405-557-5474 or Debra Roseburr, 405-557-7128 Oklahoma Employment Security Commission Federal Bonding Program Post Office Box 52003 Oklahoma City, Oklahoma 73152-2003
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