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Employer Resource

The Federal Bonding Program

FBP bonds protect the employer against losses caused by the fraudulent or dishonest acts of the bonded employee.  Examples of such acts of employee dishonesty include:  theft, forgery, larceny, and embezzlement.  Employers receive the FBP bonds free-of-charge as an incentive to hire high-risk job seekers.  Each FBP bond has a $5,000 limit with $0 deductible and covers the first six months of a selected individual’s employment. 

The FBP, a unique hiring incentive tool, targets individuals whose backgrounds can pose significant barriers to securing or retaining employment, including:

  • Justice-involved citizens

  • Individuals in recovery from substance use disorders

  • Welfare recipients

  • Individuals with poor credit records

  • Economically disadvantaged youth and adults who lack work histories

  • Individuals dishonorably discharged from the military

Basically, the employer needs to make an offer of employment to the high-risk job seeker that guarantees 30 or more hours of work per week for six consecutive months whereas the employer withholds wages for Federal taxes that are automatically deducted from their pay. While self‐employed people cannot be covered, temporary employment agencies qualify.  Fidelity Bonding must be a condition of hire.


If these conditions are presented to the high-risk job seeker and it is accepted, then the employer needs to contact the Michigan Works! Bonding Coordinator.  The Michigan Works! Bonding Coordinator will then conduct an intake of information from the employer.  Once completed, the employer is bonded and will receive the Fidelity Bond within 15 business days. 

Michael Prus, Analyst

WD – Targeted Services
Phone: 517-335-4316 

Fax: 517-241-8216 


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