Thursday, October 2, 2008

OPERATIONAL DEFINITIONS FOR FIDELITY BOND CERTIFICATION FORM

MAIL TO:

The completed FIDELITY BOND CERTIFICATION FORM is to be mailed to the Louisiana Department of Labor Administrative Office, Attention: Paula Collins where it will be processed for the mailing of a Fidelity Bond to the employer who hired the bondee. The McLaughlin Company serves as agent for Travelers Casualty and Surety Company of America in the issuance of this bond.

LOUISIANA DEPARTMENT OF LABOR:

This is the organization that purchased a fidelity bond package from The McLaughlin Company. The bonds are to be issued to employers, free-of-charge, as an incentive for the hiring of ex-offenders and other at-risk job applicants. These job hires must earn wages subject to automatic paycheck deductions for Federal taxes.

EMPLOYER RECEIVING BOND: DATE AFFIRMED:

This is the date that the employer agreed (verbally) to hire a job applicant referred by a Louisiana Department of Labor Career Solutions Center on condition that a Fidelity Bond would be issued to the employer. This date cannot be later than the applicant’s first day of work (see BOND EFFECTIVE DATE BELOW), but can be the same day that the applicant is scheduled to start work.

WORKER COVERED BY BOND:

This is any individual who has a record of arrest, conviction or imprisonment (including anyone who has ever been on probation and/or released from jail or prison) or is otherwise considered “at-risk” due to any of the following circumstances: is in substance abuse recovery (history of alcohol or drug abuse); welfare recipient and others having poor financial credit history and/or ever declared personal bankruptcy; was discharged dishonorably from the military; is “economically disadvantaged “ and lacks a work history; or for other reasons lacks personal credibility that is a barrier to employment which can be removed by issuance of a Fidelity Bond.

BOND EFFECTIVE DATE:

This is the date scheduled by the employer as the first day of work for the job applicant. The bond insurance begins on that date and remains in effect for a six-month duration.

BOND INSURANCE AMOUNT:

This is the dollar amount of insurance provided by the Fidelity Bond to protect the employer against any employee dishonesty. The TOTAL AMOUNT identified can be either 5, 10, 15, 20 or 25K (no other amounts are acceptable; $5K is the minimum bond amount; $25K is the maximum). It should be noted that the bond issued has no deductible amount; therefore, the employer receives coverage for the full bond insurance amount.

NEW or RENEWAL:

This space is to designate with a “check mark” whether the bond issued is NEW (i.e., first time a bond is being issued to the employer to cover the specific worker) or is a RENEWAL (i.e., a second six-months of free insurance is being issued to the employer covering the same worker).

OFFICIAL BOND INSURANCE STAMP(S):

The Louisiana Department of Labor. Purchaser of a Fidelity Bond package from The McLaughlin Company has been provided a set of stamps, one or more of which will be affixed to each FIDELITY BOND CERTIFICATION FORM, whether new or renewal. The number of stamps provided was based upon the package size purchased (e.g., 25 stamps are provided for a 25 bond package), and each stamp represents one unit of bonding/$5,000 insurance coverage for a six-month duration.

These stamps are numbered sequentially so that The McLaughlin Company can automatically know which bond package purchaser has issued a bond. For each $5,000 of insurance specified for BOND INSURANCE AMOUNT (see above), one stamp is to be affixed in space at the bottom of the CERTIFICATION FORM (e.g., to issue a $10,000 bond to the employer, two stamps are to be affixed to the FORM).

SIGNATURE:

The Form is signed by the designated staff person assigned by the Louisiana Workforce Commission.

FIDELITY BOND CERTIFICATION FORM

FIDELITY BOND CERTIFICATION FORM


LOUISIANA DEPARTMENT OF LABOR CAREER SOLUTIONS CENTER

NAME__________________________________________________

ADDRESS________________________________________________

CITY/STATE/ZIP__________________________________________

EMPLOYER RECEIVING BOND:

DATE AFFIRMED______/_______/____

COMPANY/AGENCY NAME___________________________________________________

CONTACT PERSON NAME___________________________________________________

FEDERAL ID #_____________________________________________

ADDRESS_________________________________________________

CITY/STATE/ZIP___________________________________________

WORKER COVERED BY BOND

LAST NAME___________________________

FIRST NAME__________________________

BOND EFFECTIVE DATE _____/_____/_____

SOC. SECURITY #_____________________

BOND INSURANCE AMOUNT: TOTAL AMOUNT

NEW_____ $ ,000

RENEWAL AMOUNT $_____ _________________________
($5, 10, 15, 20 OR $25K)

OFFICIAL INSURANCE BOND STAMP(S)*





________________________________________________________
*One stamp for each $5000 of bond insurance issued; maximum is $25,000 & requires 5 stamps.
Approved:


___________________________________________________
Paula Collins , Workforce Development Supervisor II


MAIL TO: LOUISIANA DEPARTMENT OF LABOR
ATTENTION: PAULA COLLINS
P.O. BOX 94094 - 3RD FLOOR ANNEX
BATON ROUGE, LA 70804-9094
PHONE (225) 342-4901 FAX (225) 342-3282

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

OPERATIONAL DEFINITIONS

MAIL TO: The completed FIDELITY BOND CERTIFICATION FORM is to be mailed to the Louisiana Department of Labor Administrative Office, Attention: Paula Collins where it will be processed for the mailing of a Fidelity Bond to the employer who hired the bondee. The McLaughlin Company serves as agent for Travelers Casualty and Surety Company of America in the issuance of this bond.

LOUISIANA DEPARTMENT OF LABOR: This is the organization that purchased a fidelity bond package from The McLaughlin Company. The bonds are to be issued to employers, free-of-charge, as an incentive for the hiring of ex-offenders and other at-risk job applicants. These job hires must earn wages subject to automatic paycheck deductions for Federal taxes.

EMPLOYER RECEIVING BOND: DATE AFFIRMED: This is the date that the employer agreed (verbally) to hire a job applicant referred by a Louisiana Department of Labor Career Solutions Center on condition that a Fidelity Bond would be issued to the employer. This date cannot be later than the applicant’s first day of work (see BOND EFFECTIVE DATE BELOW), but can be the same day that the applicant is scheduled to start work.

WORKER COVERED BY BOND: This is any individual who has a record of arrest, conviction or imprisonment (including anyone who has ever been on probation and/or released from jail or prison) or is otherwise considered “at-risk” due to any of the following circumstances: is in substance abuse recovery (history of alcohol or drug abuse); welfare recipient and others having poor financial credit history and/or ever declared personal bankruptcy; was discharged dishonorably from the military; is “economically disadvantaged “ and lacks a work history; or for other reasons lacks personal credibility that is a barrier to employment which can be removed by issuance of a Fidelity Bond.

BOND EFFECTIVE DATE: This is the date scheduled by the employer as the first day of work for the job applicant. The bond insurance begins on that date and remains in effect for a six-month duration.

BOND INSURANCE AMOUNT: This is the dollar amount of insurance provided by the Fidelity Bond to protect the employer against any employee dishonesty. The TOTAL AMOUNT identified can be either 5, 10, 15, 20 or 25K (no other amounts are acceptable; $5K is the minimum bond amount; $25K is the maximum). It should be noted that the bond issued has no deductible amount; therefore, the employer receives coverage for the full bond insurance amount.

NEW or RENEWAL: This space is to designate with a “check mark” whether the bond issued is NEW (i.e., first time a bond is being issued to the employer to cover the specific worker) or is a RENEWAL
(i.e., a second six-months of free insurance is being issued to the employer covering the same worker).

OFFICIAL BOND INSURANCE STAMP(S): The Louisiana Department of Labor. Purchaser of a Fidelity Bond package from The McLaughlin Company has been provided a set of stamps, one or more of which will be affixed to each FIDELITY BOND CERTIFICATION FORM, whether new or renewal. The number of stamps provided was based upon the package size purchased (e.g., 25 stamps are provided for a 25 bond package), and each stamp represents one unit of bonding/$5,000 insurance coverage for a six-month duration.

These stamps are numbered sequentially so that The McLaughlin Company can automatically know which bond package purchaser has issued a bond. For each $5,000 of insurance specified for BOND INSURANCE AMOUNT (see above), one stamp is to be affixed in space at the bottom of the CERTIFICATION FORM (e.g., to issue a $10,000 bond to the employer, two stamps are to be affixed to the FORM).

SIGNATURE: The Form is signed by the designated staff person assigned by the Louisiana Workforce Commission.

Louisiana Department of Labor’s Federal Bonding Program Overview

SUBJECT: Louisiana Department of Labor’s Federal Bonding Program Overview

PURPOSE

Is to discus the importance of purchasing Federal Bonds and how these fidelity bonds can be utilized as a job placement incentive for Louisiana employers.

ACTION REQUIRED

Since 1966 the Employment and Training Administration (ETA) has administered, through contract with the McLaughlin Company, the Federal Bonding Program. Fidelity Bonds are purchased from the McLaughlin Company and made available to all Career Solution Centers. The Federal Bonding Program will be know as the Louisiana Federal Bonding Program and will function as a job placement tool by providing employers with a special incentive to hire the hardest to place jobseekers such as ex-offender and other at-risk job applicants.

PROCESS

The Louisiana Federal Bonding program is design to be an uncomplicated program. The process will begin by local staff completing the Fidelity Bond Certification Form (see attached) and then mail to LDOL’s Federal bonding coordinator. The LDOL Federal Bonding coordinator will certify
and file the paperwork and forward the application to the McLaughlin Company. The McLaughlin Company will then issue a Fidelity Bond from Travelers Property Casualty. After the certification, a sample letter is initiated by the local staff confirming the bonding of the employee. It is also recommended that local staff attach a Federal Bonding Fact Sheet with the confirmation letter. This whole process should take no longer than 15 days. It is further stressed that a local data base is maintain regarding which employers are hiring ex-offenders.

This information was orriginally received on 6-12-07

Clarifications by Paula Collins

Clarifications by Paula Collins

• An individual does not have to be a "member".
• The staff is responsible for completing the process and not the job applicant. In order to expedite the process you will make contact with the employer and complete the form I will be sending you.
• I will forward the employer a confirmation letter and copy you. The federal identification number is requested for verification purposes.
• You can access most federal identification numbers through the LWC mainframe.
• We have to know that the employer is a legitimate employer before completing the request for bonding.

• In order for an individual to secure a bond, he must be employed.
• The bond can start effective the day of employment but the individual must be employed.
• Bonds can also be used if necessary to promote or retain an employee. If the level of responsibility maybe a security to risk to an employer or if with bonding an employee maybe terminated, we can bond for such issues.

• The bondee does not have any paper work to take to the employer.
• The form is completed in your office.
• The employer or the job applicant does not have any form(s) to sign.
• Your signature ensures that (1) the employer is legitimate and (2) the worker covered by the bond has presented you with identification documentation.

• You can fax the bonding certification to my attention once it has been completed. It is not necessary to mail it. IT has sent the updated form so it's attached. If I can be of further assistance please call me.

Paula Collins/LWC
10/01/2008 12:03 PM

----------------- --------------------

Is it the employers choice as to what amount the Federal Bonding will be?

It actually depends on the wage rate for the most part.

Louisiana Workforce Commission Fidelity Bonding Program

Louisiana Workforce Commission Fidelity Bonding Program

What Is Fidelity Bonding?

• Insurance to protect employer against employee dishonesty
• Covers any type of stealing: theft, forgery, larceny, and embezzlement
• In effect, a guarantee of worker job honesty
• An incentive to the employer to hire an at-risk job applicant
• A unique tool for marketing applicants to employers
• DOES NOT cover ‘liability” due to poor workmanship, job injuries, work accidents, etc.
• Is NOT a bail bond or court bond needed in adjudication
• Is NOT a bond needed for self-employment (contract bond, license bond or performance bond)

Why Is Fidelity Bonding Needed for Job Placement?

• Employers view ex-offenders and other at-risk job seekers as potentially untrustworthy workers, thereby, denying them job-hire
• Insurance companies will not cover risky job applicants under commercial Fidelity Bonds purchased by employers to protect themselves against employee dishonesty
• Anyone who has ever “committed a fraudulent or dishonest act” is deemed NOT BONDABLE by insurance companies, a situation leading to routine denial of employment opportunities for such persons
• Being NOT BONDABLE is a significant barrier to employment possessed by the hardest-to-place job applicants; this barrier can be eliminated only by The Federal Bonding Program
• Job bonding enables the employer to “obtain worker skills without taking risk”
• Persons who are NOT BONDABLE can ultimately become commercially BONDABLE by demonstrating job honesty during the 6 months of bond coverage under the Federal Bonding Program (such commercial bonding will be made available by the Travelers Casualty and Surety Company of America; referred to hereafter as TRAVELERS)

Who Is Eligible for Bonding Services?

• Any at-risk job applicant is eligible for bonding services, including: ex-offenders, recovering substance abusers (alcohol or drugs), welfare recipients and other persons having poor financial credit, economically disadvantaged youth and adults who lack a work history, individuals dishonorably discharged from the military, and others
• Anyone who cannot secure employment without bonding
• Self-employed persons are NOT ELIGIBLE for bonding services (bondee must be an employee who earns wages with Federal taxes automatically deducted from paycheck)
(over)Bonds can be issued to cover already employed workers who need bonding in order to (a) prevent being laid off, or (b) secure a transfer or promotion to a new job at the company.
• Bonding coverage can apply to any job at any employer who has a tax identification number for the state of Louisiana.

How Can Bonds Be Accessed Under the Federal Bonding Program?


• Louisiana Department of Labor is now eligible to deliver bonding services under The Federal Bonding Program
• The Fidelity Bonds issued to employers covering at-risk applicants are made available exclusively to The Federal Bonding Program by the which is not duplicated by any other federal or state program
• Bonds are issued instantly to be in effect the day that the applicant is scheduled to start work and at no cost to the employer
• The bond insurance issued ranges from $5,000 to $25,000 coverage for a 6-month period with no deductible amount (employer gets 100% insurance coverage); when this bond coverage expires, continued bond coverage can be purchased from the McLaughlin Company who is the agent for Travelers by the employer if the worker demonstrated job honesty under coverage provided by The Federal Bonding Program
• Bond can be issued to the employer as soon as the applicant has a job offer with a date scheduled to start work

Louisiana Department of Labor’s Bonding Scale

•Hourly Wage ×Yearly Wage »Bond Amount
•$8.00 - $9.61 ×$16,640 – $19,999 »$5,000
•$9.62 – $14.42 ×$20,000 - $29,999 »$10,000
•$14.43 - $19.23 ×$30,000 - $39,999 »$15,000
•$19.24 - $24.03 ×$40,000 - $49,999 »$20,000
•$24.05 and up ×$50,000 and up »$25,000


Paula Collins
State Bonding Coordinator
Louisiana Department of Labor
P.O. Box 94094
Baton Rouge, LA 70804-9094
Phone: (225) 342-4901 Fax : (225) 342-3282
pcollins@ldol.state.la.us