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Federal Bonding Letter

In 1966, the U.S. Department of Labor created the Federal Bonding Program as an incentive for employers to hire ex-offenders and guaranty the job honesty of at-risk job applicants.A Federal Bonding Letter is basically an insurance policy that will protect the employer from any type of stealing: theft, forgery, larceny, and embezzlement caused by the employee. The use of bonding insurance is free for employers who apply. Some of our candidates are ex-offenders. As a result, we offer access to Federal Bonding Letters:

 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 at the end of the 6 months, the employer can purchase a transfer bond for an extension.

The process for bonding insurance with the ex-offender is simple and requires only three steps to be utilized.

  1. A job offer is made.
  2. The employer sends a letter to the Department of Labor Bonding Coordinator that confirms the offer of employment, job title, work location and start date.
  3. The bond is issued and is effective on the employee's first day of work.
  • Bonding Letters can be sent to the following address:
  • Ms. Camille Fallaw
    Bonding Services Coordinator
    SC Dept. of Employment & Workforce
    1550 Gadsden Street
    P.O. Box 1406
    Columbia, SC 29202
    803-737-0140 fax

Having bonding insurance for the ex-offender is most often the one confirmation for an employer that you will not become a liable for their other insurance and greatly aids, along with the Work Opportunity Tax Credit in your gaining employability.

For more information on the federal Bonding Program, click here.