Fidelity bonds, also sometimes referred to as “honesty bonds” are a type of surety bond that is offered to companies to protect employers from dishonest employee conduct, including theft, fraud, larceny, and embezzlement. More and more businesses continue to expand their second chance hiring, providing employment to individuals with criminal history records – which has been shown to significantly reduce recidivism rates, reduce workforce shortages, and result in exemplary employees. Unfortunately, these companies may be refused a fidelity bond or be charged an increased rate for such a bond if they choose to hire these individuals.
 
To address this barrier to best business practices and professional discrimination against the millions of Americans who have some kind of criminal history record, we will be introducing legislation that would prohibit bonding companies from refusing to insure companies based on the criminal history of their employees or proposed hires. Additionally, the legislation would prohibit bonding companies from increasing rates because of the criminal history of employees or proposed hires.
 
While most insurance practices in Pennsylvania have statutory protections preventing them from being excessive and unfairly discriminatory, fidelity bonds do not. We look forward to your support for this legislation that would expand these vital protections and encourage more employers to hire individuals who are justice-involved, thereby reducing recidivism rates, stimulating the economy, and reducing labor shortages.
 

Statutes/Laws affected:
Printer's No. 1250: P.L.589, No.205