The fidelity bonding service helps at-risk job applicants get and keep a job. Workforce Solutions Rural Capital Area (WSRCA), in partnership with the Texas Workforce Commission, offer free fidelity bonding services to reduce employers’ concerns about hiring at-risk job applicants who cannot be bonded through other sources.
For this bonding, Union Insurance Group issues an insurance policy that protects the employer against employee acts of dishonesty such as larceny, embezzlement, and theft.
- Coverage is free for six months. After six months, bonding becomes the employer’s responsibility.
- Coverage is usually issued in the amount of $5,000.
- There is no deductible.
- There are no forms to fill out and no processing.
- Coverage can be activated almost immediately.
Applicants eligible for fidelity bonding services include:
- Justice-involved individuals, 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
- Disadvantaged youth who lack a work history
- Anyone who is declined fidelity bonding through the commercial bonding system
A fidelity bond will not provide coverage for self-employed individuals looking for a performance bond, surety bond, or contract bond. Fidelity bonds cover only a specific employer-employee relationship, which is demonstrated by withholding income and social security taxes.
A fidelity bond does not provide coverage for poor workmanship, job injuries, or work accidents.
Requests for Fidelity Bonding
Either the job applicant or the prospective employer can request bonding through any WSRCA Workforce Center. If the applicant is eligible, bonding coverage is effective immediately following certification or on the applicant’s first day of work once certified.
The bond will be mailed to the employer and is issued for six months. After that, employers may purchase a transfer bond for an additional six months at the insurance company’s discretion. Eventually, the employee may become permanently bondable.
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