Benefits for Employers: Federal Bonding Program
This section explains all the eligibility requirements of the Federal Bonding Program and how to apply for the program.
WHO IS ELIGIBLE FOR THE FEDERAL BONDING PROGRAM?
In order to be eligible for the federal bonding program, you must meet the following requirements:
Have a firm job offer (or be already employed) at a job that is likely to be long-term or permanent. The EDD staff will need to verify that the employer is ready to hire you (or keep you on the job) once you have bonding insurance.
Be qualified for the job position being offered. In other words, the only thing preventing you from getting the job is the lack of insurance.
The position that you are being hired for requires you to be bonded, or you are required to be bonded to remain on the job.
You are not commercially bondable, or could be denied commercial bonding coverage because of an arrest record or imprisonment, history of drug or alcohol abuse, poor credit history, lack of employment history, dishonorable discharge from the military, or other “risk” factors.
You are 18 or older and legally eligible to work in the U.S. You will have to provide proof of your legal status or documentation for authorization to work in the United States.
Are not self-employed or an owner/operator.
HOW DO I APPLY FOR THE FEDERAL BONDING PROGRAM?
STEP 1: Visit your local EDD Workforce Services location or America’s Job Center of California (formerly One-Stop Career Center). The only document you need to bring is proof of legal status or eligibility to work in the U.S. (see list of employment verification documents, Appendix A, PG. 615)—you do NOT need to bring any other paperwork. The EDD staff will contact the employer and/or do other research to make sure that you meet all the other eligibility requirements;
STEP 2: The EDD staff person certifies (approves) the bond; and
STEP 3: Your insurance coverage will begin as soon as you begin work.
Two important things about bonding:
- Your employer can only get free insurance coverage for the first 6 months that you work there; after that they will have to purchase insurance directly. If you lose your job after 6 months and you suspect that your employer dumped you so that it would not have to pay insurance, you may want to contact the EDD.
- If you switch to another job that also requires bonding, there is no guarantee that you will be able to get insurance with the new employer. The EDD will decide on a case-by-case basis whether or not to issue you another round of bonding. For this reason, we recommend that you only use the bonding program for jobs that are likely to be long-term or permanent—NOT for temporary positions.
The EDD is here to help you! The EDD wants to make sure that all bonding program participants are successful in their work and are treated equally by employers. If you have any questions or problems about getting bonded, contact the EDD State Bonding Coordinator at 916-654-9309.
For more information on the government bonding program:
- Visit any EDD America’s Job Center of California or Workforce Services location
- Read the EDD’s online brochure at http://www.edd.ca.gov/pdf_pub_ctr/de8714ff.pdf
- Contact the EDD State Bonding Coordinator:
Workforce Services Branch—California EDD
P.O. Box 826880, MIC 50
Sacramento, CA 94280-0001
Calif. Employer Advisory Council, EDD Fidelity Bonding Program—An Employment Incentive, http://ceac.org/employers/ask_the_edd_expert/edd_fidelity_bonding_program/. ↑
Telephone call with Gil Barkley, (backup) State Bonding Coordinator, EDD, Feb. 17, 2015. The EDD will also want to make sure that the employer is not simply exploiting you for free insurance coverage and then getting rid of you after the first 6 months of free coverage is over. ↑
Telephone call with Maria Alexander and Mary Weaver, Friends Outside in Los Angeles County, Jan. 21, 2015. ↑
Telephone call with Gil Barkley, (backup) State Bonding Coordinator, EDD, Feb. 17, 2015. ↑