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The United States Congress created two financial incentive programs to benefit employers who hire ex-offenders. One program gives an employer a tax break of $2,400 once an ex-offender has been hired and has worked for a certain number of hours. The other provides fidelity insurance bonds as an incentive to hire an ex-offender who might normally be considered high risk by mainstream insurance companies. These programs are often under-utilized. Employers should be made aware of these programs, and that the State or our organization can assist them with the paperwork. Some employers have reported that they were “on the fence” about hiring an ex-offender, but the financial incentives “sealed the deal.”
Federal Bonding Program
The Federal Bonding Program issues fidelity bonds which serve as insurance policies for employers. Bonding protects an employer in case of theft, forgery, larceny, or embezzlement of money or property by an employee covered by the bond. The bond coverage is usually $5,000-$10,000, free for an employer, and good for up to one year. The bond becomes effective the first day of employment. For more information, visit the Illinois Department of Employment Security web site at http://www.ides.state.il.us/employer/general/bond.asp.