New York State Department of Labor Business Services

It is a unique tool established to help a “high risk” job applicant get and keep a job. The program issues Fidelity Bonds and is federally sponsored by USDOL.

It is a business insurance policy that protects you in case of any losses due to employee dishonesty. It is a “guarantee” that the person hired will be an honest worker. The Fidelity Bonds issued under the FBP are insurance policies from the Travelers Casualty and Surety Company of America. We purchase bond packages from The McLaughlin Company to aid job seekers who have barriers to employment.

The bond is given to the business free for six months. It serves as an incentive to hire an applicant who has a “risk” factor in his/her background, such as poor credit or lack of a work history. You are able to acquire the worker’s skills without the risk of worker dishonesty.

It insures businesses for any type of stealing (theft, forgery, larceny or embezzlement). It 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).

The worker must meet the legal age for working in New York State. Employers must pay wages to the workers, with Federal taxes automatically deducted from pay. The job must have the potential to last at least six months. We cannot cover self-employed persons.

It offers bond coverage for any person whose background usually leads businesses to question his/her honesty and in effect, deny that person a job. The program will cover any person who may be considered a “risk,” such as someone with:

• A record of arrest, conviction or imprisonment (Anyone who has ever been on parole or probation, or has any police record)
• Recovery from substance abuse (persons rehabilitated through treatment for alcohol and/or drug abuse)
• Poor credit record or have declared bankruptcy
• Dishonorable discharge from the military
• Lack of work history
• Current or past participation in any State or local-operated summer or year-round youth program

The FBP is designed to help applicants who are having a difficult time finding a job due to their backgrounds. However, we can issue a bond to cover an incumbent worker who is not bondable under your insurance. The program may be needed to secure a transfer or promotion to a new job or to prevent layoff or termination.

Fidelity Bonds that you may purchase do not cover anyone who has a poor credit history or has already committed "a fraudulent or dishonest act." Ex-offenders and other job applicants with questionable backgrounds are designated by the insurance industry as "not bondable". Only the FBP will issue bonds that cover anyone who is usually not bondable. As a result, we eliminate bonding as a barrier to hiring.

Bond insurance is issued free for six months. If the worker demonstrates job honesty during the six months of FBP coverage, you can purchase continued bond coverage.

Yes. Part-time employment and temporary work of six months or more can be bonded.

Most welfare recipients will qualify due to poor credit history or bankruptcy. Also, ex-offenders, recovering substance abusers or those lacking a work history may qualify.

Bond issuance can be requested by either the business or the job applicant. To apply, contact the nearest Local Bonding Coordinator from the list above.

No. You must have a job offer and a start date before we can issue a bond. The FPB insures you for a six-month period. The job start date will be the effective date and will terminate six months later.

Bond coverage is in increments of $5,000. The maximum is $25,000. There is no liability deductive for the business. In order to obtain a bond greater than $5,000, it must be approved by the NYS Bonding Coordinator.

None. Once the date is set for the applicant to start work, the bond can be issued instantly. The employer signs no papers and keeps no special records as the bond is self-terminating. The bond is mailed directly to the employer by The McLaughlin Company as agent for Travelers.

You should contact the nearest Local Bonding Coordinator from the list above.

Angela Crupe
New York State Department of Labor
State Office Campus
Building 12, Room 425
Albany, NY 12240
Phone: (518) 485-2151
Fax: (518) 485-2577
Email: Angela.Crupe@labor.ny.gov