Department of Labor Grant: Expanding Fidelity Bonds for Reemployment

The Department is committed to helping those involved in the criminal justice system, including ex-offenders recovering from opioid and other drug addictions, obtain employment in family-sustaining jobs; better informing employers about the knowledge, skills, and abilities of this population; and advancing strategies to address the barriers to reemployment. Through the Federal Bonding Program (FBP), ETA provides fidelity bonds to employers to help reduce the risks of hiring individuals whose criminal backgrounds pose barriers to securing employment. 

FBP is authorized under Section 169 of the Workforce Innovation and Opportunity Act (WIOA). Over the years, FBP remained a small program, but in June 2019, the Department awarded $2,234,122 for Fidelity Bonding Demonstration Grants to 23 states and one outlying area to expand their use of fidelity bonds to help persons with criminal records get employment. The Department now wishes to further increase the use of fidelity bonds by offering funds to the states and outlying areas that did not receive grants last year. 

State Workforce Agencies apply for the grant on behalf of their respective states and states will operate this grant through their current FBP. States that do not currently operate a FBP must designate a staff person to serve as the state bonding coordinator for this grant. States will use their own procurement policies and procedures to select an insurance provider to purchase bonds or may continue to purchase fidelity bonds through the Department of Labor’s FBP contractor, as long as they comply with state contracting procedures. State bonding coordinators may certify bonds or delegate the authority to certify bonds to other staff.