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