What Does It Mean When an Employer Asks if You Are Bondable?
When an employer has a job vacancy, most likely it wants the most qualified and trustworthy employee to fill the role. While most employers take steps to ensure that they hire qualified and trustworthy employees, using interviews, reference and background checks to determine the applicants’ integrity, there is still no guarantee that the person is completely trustworthy. For that reason, some employers bond their employees to cover themselves in the event of theft, poor performance or noncompliance with the rules of the industry.
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Definition of Bondable
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When you apply for a job and the employer asks if you are bondable, it is asking if you qualify for a surety bond. A surety bond is a guarantee that you are trustworthy and will perform your job within the boundaries of the law -- and that if you don't, the company will be covered financially. In some fields, particularly those where you are dealing with finance and personal property or you are responsible for working under a contract or license, employers require assurance that you are of good character and do not have significant issues in your background that could subject them to claims or legal trouble. However, a bond is not insurance; rather, it is closer to a line of credit. If someone makes a claim against your bond, and it pays out, you have to repay the entire amount of the claim.
Bonding Process
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To determine whether you are bondable, a surety underwriter runs a thorough background and credit check. If he determines that you are trustworthy, he will issue a bond. However, if you are working in the financial sector, a poor credit history could prevent you from being bonded or cause your employer to have to pay higher premiums for the bond. In most cases, if you do not have a criminal history, you are bondable. Minor misdemeanors most likely will not prevent you from getting bonded, but if you have any past convictions for theft or fraud, you are less likely to be bonded. Each surety bond company has its own requirements for bonding, so something in your background that would lead to rejection with one company might not be a problem for another.
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High-Risk Bonds
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Because some job seekers are considered high-risk, such as those with a criminal or poor credit history, a federal program is in place to help them get bonded to enter or stay in the workforce. If you are not bondable through your employers’ surety company, or if you cannot get a job because of your history, you can apply for a fidelity bond through the state. This bond is good for six months, and if you prove your trustworthiness within that period, your employer can apply for a bond through a designated company. With this program, even those who might not be traditionally bondable can answer “yes” to the question.
Bonding and Privacy
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When an employer asks if you are bondable, and applies for a bond on your behalf, it is bound by state and federal regulations covering privacy and credit reporting. For example, many states have passed legislation prohibiting credit reports from being used to make employment decisions – except in cases where employees need to be bonded. If the employer wants to run a background check for bonding purposes, you have to provide written authorization for the background and credit checks, and if your are denied a bond, the employer or the surety company has to provide you with the contact information for the company it used to get to the information about you.
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