Marcia Hultman

Cabinet Secretary

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Federal Bonding Program

Federal Bonding Program

Program Lowers Risk on Hiring Justice-Involved Individuals and Individuals Recovering from Substance Issues 

Every year, justice-involved men, women and young adults and those recovering from substance abuse look to restart their lives, including new jobs. Many times they are met with an uphill battle thanks to skepticism, hostility and reluctance to hire. Failure to get a job after release is a major factor in the high rate of recidivism according to the U.S. Department of Justice.

Through the Federal Bonding Program, DLR has received a federal grant that provides bonds as incentives for employers who are willing to hire individuals whose backgrounds may pose barriers to securing or retaining employment.

The program benefits both the employers struggling to find workers and individuals struggling to find jobs. Employers who participate in the program gain access to candidates who want to work and they obtain worker skills without risk to their businesses. In turn, the employees, who may otherwise not be given a chance, are given opportunities to prove themselves.

The bonds

  • Cover the first six months of employment at no cost to job applicants or employers
  • Range from $5,000 to $25,000 per individual. Employers receive the bonds free of charge as an incentive to hire these applicants.
  • Can be applied to full- or part-time wages
  • Protect employers against losses caused by fraudulent/dishonest acts of a bonded employee. Since inception, dishonesty claims have been filed on 1% of bonds.

There is no cost for applicants or employers. For more information, contact your Job Service office.

Publications and other Resources

Federal Bonding Program Brochure

U.S. DOL Federal Bonding Program website

Contact Us

South Dakota Department of Labor and Regulation
Federal Bonding Program
Attn: Taunya Charlton
420 S. Roosevelt St.
P.O. Box 4730
Aberdeen, SD 57402
Phone: 605.220.8383
Fax: 605.626.2228