Businesses

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.

Fidelity Insurance through the McLaughlin Company, an agent for Travelers Insurance Company, that protects employers against employee theft.
  • $5,000 coverage for a 6-month period (no deductable)
  • Free of charge to job seeker and employer
  • Covers loss due to theft, forgery, larceny or embezzlement
  • Does not cover poor workmanship, injuries or accidents

Federal Bonding can cover job applicants denied (or potentially denied) commercial bonding due to:

  • Arrest, conviction or imprisonment
  • Alcohol or drug abuse
  • Poor credit history
  • No employment history
  • Dishonorable discharge from the military
  • Any other reason that make the job seeker "not bondable"
  • Firm full or part-time job offer with start date (job offer can be contingent on receiving bond)
  • Job must have an employer-employee relationship with federal taxes automatically deducted
  • Program does not cover self-employment or independent contractors
  • The bonds will be processed by Oregon's Federal Bonding Coordinator, an employee of the Oregon Employment Department
  • Bonds can be requested by the job seeker, employer or a third party, e.g., job coach
  • Once the job seeker receives a firm job offer, contact the Bonding Coordinator
  • The Bonding Coordinator will ask for some basic information about the job seeker, employer and the job
  • If requirements are met, the Bonding Coordinator will complete the Fidelity Bond Certification Form and mail it to the McLaughlin Company
  • The Bonding Coordinator will also send a confirmation letter to the employer
  • The bond is effective the day the job seeker starts work (the start date is entered on both the certification form and the employer notification letter)
  • The McLaughlin Company will mail the actual Bond Certificate to the employer within 15 working days
  • Neither the employer nor job seeker needs to fill out any paperwork
  • If the employee completes the initial six months of free bonding without issue, the employer may purchase a bond for the employee at Travelers' commercial rate

Federal Bonding Program

Oregon Employment Department
875 Union St. NE
Salem, OR 97311

Hours of Operation

8:00 AM  - 5:00 PM

Contact

Oregon Federal Bonding Coordinator: Doug Barrett
Phone: 503-947-1680
Email: Douglas.D.Barrett@oregon.gov