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January 26, 2012

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EDD Fidelity Bonding Program – An Employment Incentive

The Employment Development Department’s (EDD) Fidelity Bonding Program provides bonding services at no cost to employers, employees, and job seekers. Fidelity bonding services protect employers against possible theft, dishonest or fraudulent acts, help alleviate employers’ concerns in hiring ex-offenders and at-risk job applicants, and provide employers with an incentive to hire job seekers who face employment barriers but want an opportunity to become self-sufficient.

This program is funded and administered by the EDD in partnership with the U.S. Department of Labor, Employment and Training Administration. Fidelity bonds may be issued anywhere from $5,000 to $25,000, in increments of $5,000. Requests for fidelity bonds more than $10,000 will be considered on a case-by-case basis.

Employees or job seekers may qualify for a fidelity bond if they meet all of the following criteria:

  • Provide verifiable proof of legal status or documentation for authorization to work in the U.S.
  • Have a firm job offer or commitment of employment with a reasonable expectation of permanence that can be verified by bonding staff.
  • Not be 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; or a lack of employment history.
  • Position requires that the job seeker be bonded or requires a bond to retain or remain on the job.
  • Job seeker or employee must be qualified for the position being offered.
  • Can’t be self-employed or an owner/operator.

Job seekers or employees may apply for a fidelity bond by visiting their local EDD Workforce Services location or One-Stop Career Center. The certification process is simple and requires no paperwork for the job seeker or the employer. Bond coverage becomes effective when:

  • All eligibility requirements are met.
  • The EDD’s Workforce Services or One-Stop Career Center staff has certified the bond.
  • The applicant/employee has begun work.

The fidelity bond is free-of-charge and remains in effect for six months from the date of issuance. It can’t be cancelled, forfeited, terminated, or transferred to another employee. After the initial six-month coverage period, if no claim has been made against the policy, the employer has the opportunity to purchase continuing coverage at normal commercial rates.

For more information about the EDD Fidelity Bonding Program, visit www.edd.ca.gov or submit questions to . The links below provide additional information about the program:

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