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Will new employer rates be affected?

No, new employer rates will not be affected. New employer rates are the contribution rates assigned to a contributing employer in business for less than 24-months and are based on the average rate of that employer’s business industry (the NAICS code industry sector).

What is a Fidelity Bond?

It is a business insurance policy that protects the employer in case of any loss of money or property due to employee dishonesty. It is like a "guarantee" to the employer that the person hired will be an honest worker. 

What is the Federal Bonding Program?

An innovative activity that serves as a tool to secure the job placement of ex-offenders and other high-risk applicants. The program, sponsored by the U.S Department of Labor, issues Fidelity Bonds. 

What exactly does the bond insurance cover?

It insures the employer for any type of stealing by theft, forgery, larceny, or embezzlement. It does not cover liability due to poor workmanship, job injuries, or work accidents. It is not a bail bond or court bond for the legal system. It is not a contract bond, performance bond, or license bond sometimes needed to be self-employed.

How does the bond help someone get a job?

The bond is given to the employer at no cost, and serves as an incentive to the company to hire a job applicant who is an ex-offender or has some other "risk" factor in their personal background. The employer is then able to get the worker's skills without taking any risk of worker dishonesty on the job. 

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