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Federal Bonding Program

Federal Bonding Program Website

The Oregon Employment Department participates in the Federal Bonding Program.

Employers can receive $5,000 fidelity bonds, free of charge, as an incentive to hire job seekers that do not qualify for commercial fidelity bonds. This program, sponsored by the U.S. Department of Labor, has a 99% success rate nationwide, as only one percent of the workers receiving bonds have proven to be dishonest.


Contact: Kate W. James, Program Coordinator

Email: Kathleen.W.JAMES@employ.oregon.gov





​The U.S. Department of Labor established The Federal Bonding Program in 1966 to provide Fidelity Bonds for “at-risk," hard-to-place job seekers. The bonds cover the first six months of employment at no cost to the job applicant or the employer. The Federal Bonding Program is a unique hiring incentive tool that targets individuals whose backgrounds can pose significant barriers to securing or retaining employment, including:

  • ​Citizens involved in the criminal justice system

  • Individuals in recovery from substance disorders

  • TANF recipients

  • Individuals with poor credit records

  • ​Economically disadvantaged youth and adults who lack work histories

  • Individuals dishonorably discharged from the military


  • ​​The applicant must have a final job offer with a start date (job offer can be contingent on receiving bond)

  • The applicant must have a full-time or part-time job

  • The job offered must have an employer-employee relationship with federal taxes automatically deducted

  • The job offered cannot be a self-employment or independent contractor position


  • ​​Covers theft, forgery, larceny, or embezzlement

  • Does not cover poor workmanship, injuries, or accidents




  • ​​Employers receive the federal bonds free-of-charge as an incentive to hire these applicants​

  • Each federal bond has a $5,000 limit with no deductible and covers the first six months of a selected individual's employment


  • ​​The Federal Bonding Program is an incentive to hire a qualified job seeker who is job ready and has barriers to employment

  • WorkSource Oregon offers assistance to job seekers to become job ready. You can find your local office at worksourceoregon.org/contact

  • Oregon's “ban the box" law makes it unlawful for an employer to ask about your criminal history before the interview stage of hiring

  • If, during an interview, a job seekers answers questions indicating they have a barrier to employment, the job seeker can mention that the employer may be able to receive a $5,000 bond as an incentive to hire, and provide the Federal Bonding Coordinator's email, Celina.A.Kirnberger@employ.oregon.gov​.​

  • Job seekers may choose to use the Federal Bonding Program Introduction Letter

  • Guidance for how to use the Federal Bonding Program Introduction Letter can be found here​​​​​


  • ​​Employers may fill out the Bond Request form if they have met the requirements, and Oregon's Federal Bonding Program Coordinator will contact you if there are questions​

  • Employers may call or email Kate W. James, Program Coordinator, at 971-375-3660​ or Kathleen.W.JAMES@employ.oregon.gov​

  • ​​The bond is effective the day the job seeker starts work (The start date is entered on both the certification form and the employer confirmation letter)​

  • The bonding coordinator will also send a confirmation letter to the employer​ 

  • Union Insurance Group will mail the Bond Certificate to the employer within 15 working day

  • The job seeker does not need to fill out any paperwork​

  • If an employee completes six months of free bonding without issues, the employer may purchase a bond from Union Insurance Group for that employee at the regular commercial rate