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Michigan Parole, Probation, Halfway Houses, Employment, etc. All information & questions relating to parole, probation, community service, half-way houses, and ex-offender employment in Michigan should be posted here.

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Old 01-11-2006, 10:02 PM
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Default Fidelity Bond Program

Fidelity Bonding Program


Sponsored by the Department of Labor and Economic Growth–Employment Service Agency (DLEG–ESA), the Fidelity Bonding Program was created to assist high-risk, but qualified, job seekers who have bona fide offers of employment.

Typically, some employers may view ex-offenders, former substance abusers, and other individuals who have questionable backgrounds as high-risk job seekers who might be untrustworthy workers.

The Fidelity Bonding Program offers a business insurance policy that protects an employer against any possible losses incurred due to actions by high-risk employees. In addition, the program is designed to remove barriers to employment that high-risk job seekers — those who are qualified to work but need a second chance — face. Further, it gives employers an incentive to hire qualified, high-risk job seekers who might otherwise be unable to find work.

The Fidelity Bonding Program provides fidelity bond insurance FREE OF CHARGE for employers of certain high-risk employees.
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Old 01-11-2006, 10:04 PM
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Are You Considered High-Risk?

The Fidelity Bonding Program targets job seekers who are considered high-risk. If you have committed a fraudulent or dishonest act, or have demonstrated other behaviors that cast doubt on your honesty then you may be considered high-risk.

The following is a list of individuals who are considered high-risk:

Ex-offenders
Former substance abusers
Individuals who are considered to be at-risk youth
Individuals who have been dishonorably discharged from military service
Individuals with a poor credit history

Other individuals who may be eligible for this program may include:

Individuals lacking a work history
Public assistance recipients
Anyone who cannot be commercially bonded

The Fidelity Bonding Program is designed to remove barriers to employment for high-risk job seekers who are qualified to work but need a second chance. If you have the skills, the Fidelity Bonding Program may be the key to a new opportunity for you.
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Old 01-11-2006, 10:05 PM
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Who is Eligible for Bond Coverage?

To be eligible for fidelity bonding, workers for any employer in the state of Michigan must be paid wages from which it deducts federal income taxes. Workers must also meet the legal working age requirement. Self-employed individuals are not eligible for this bond.

The Fidelity Bond Insurance is FREE OF CHARGE; it expires after six months of employment. However, the employer may purchase continued coverage from The McLaughlin Company at competitive rates.

To be eligible for fidelity bonding, job seekers must:

Be considered a high-risk by the employer
Be qualified for the position they are seeking
Meet the applicable working age requirement under Michigan labor laws
Be hired in a position paying wages from which federal income taxes are automatically withheld
Have previously been denied commercial bonding

Individuals who do not qualify for the bonding program include the following:

Self-employed persons
Independent contractors
Employees who do not have federal income taxes withheld from their paycheck
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Old 01-11-2006, 10:08 PM
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How Are Fidelity Bonds Obtained?

An employer or job seeker may request a fidelity bond by contacting the local Michigan Works! service center at 1-800-285-WORKS. Any Michigan Works! service center may deliver assistance under the Fidelity Bonding Program.

Once a job seeker receives a bona fide offer of employment, the employer must write an offer of employment letter. The letter must be on the organization's letterhead and include the following information:

The name, address, city, state, and zip code of the job seeker

The date of the employment offer

The actual starting date that the job seeker will begin work (fidelity bonds can be issued and become effective once the offer of employment letter and the Fidelity Bond Certification Form (DLEG–ESA 100–150) have been approved by the MWA Bonding Coordinator)

Job title, rate of pay, and the conditions of work, i.e., the job duties and responsibilities

A statement that the employment is conditional upon the worker receiving a fidelity bond (This statement must appear exactly in the letter)

A statement mentioning that employment is full-time {Full-time means employment that is six (6) months or longer in duration and at least thirty (30) hours or more per week continuously}

The amount of bond coverage needed: $5,000; $10,000, $15,000, $20,000 or $25,000
If the bond coverage exceeds $5,000, the employer must include a statement in the offer of employment letter to justify the need for a higher bond (multiples of $5,000); This statement is required


The end of the letter must have the original signature of the person who has the authority to hire the job seeker. Typed beneath the signature is the name and position of the hiring authority, for example, Owner, President, CEO, Hiring Manager, etc.
The job seeker’s offer of employment letter must be delivered to a Michigan Works! Agency. An Employment Service provider will complete the fidelity bond certification form based on the information provided in the employer’s letter. After the bonding application has been approved, the bond will become effective on the employee’s first day of employment. The employer will receive a confirmation letter from The McLaughlin Company in 3-4 weeks.
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Old 12-28-2008, 10:24 PM
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