If you’re searching for jobs for felons, you’re not out of options. Federal programs like bonding and a hiring tax credit give employers real reasons to say yes, and you can raise them yourself.
This guide sits within the wider topic of prison reentry.
| Item | Value |
|---|---|
| Work Opportunity Tax Credit, maximum per new hire | $2,400 |
| Work Opportunity Tax Credit, rate on wages | 40% of up to $6,000 |
| Hiring window for felony record | Within a year of conviction or release from prison |
| Employer filing deadline for Form 8850 | 28 calendar days after start date |
| Federal bond length | Six months, no cost to employer or applicant |
| Federal bond coverage | $5,000 to $25,000 |
These figures come from Cornell’s ILR School and the U.S. Chamber of Commerce. They can change, so check the source before you rely on them.
Why hiring incentives matter when you have a felony record
Many employers are open to hiring people with records, but Cornell’s ILR School notes that this group has historically been overlooked. The U.S. Chamber of Commerce estimates that 70 million people in the U.S. have an arrest or conviction record, so you are far from alone.
Two federal programs give employers a financial reason to look past a record. West Virginia’s Public Defender Services describes both as incentives to hire people with convictions at no cost to either the employer or the employee.
- Federal Bonding Program: insurance that protects an employer against employee theft and dishonesty.
- Work Opportunity Tax Credit (WOTC): a tax credit for employers who hire people from groups that face barriers to work, including people with felony records.
Neither program guarantees you a job. They reduce the risk and cost for the employer, which can tip a close decision.
How the Federal Bonding Program removes a hiring barrier
A fidelity bond is a business insurance policy that protects the employer against loss from theft, forgery, larceny or embezzlement by an employee, according to the Tennessee Department of Labor and Workforce Development. The program is sponsored by the U.S. Department of Labor and covers applicants whom private insurers rate as not bondable.
Per the U.S. Chamber’s guide, the bond runs for the first six months of employment, costs neither the employer nor the applicant, and covers $5,000 to $25,000. Here is how the process works for the employer:
- The employer contacts the State Bonding Coordinator with a valid job offer, company information and your full legal name.
- The bond is sent to the employer within 10 business days.
- It can apply to any job with any employer in any state.
- Full-time, part-time and temporary employees can be bonded if federal taxes are deducted from their pay.
Because the bond is tied to a specific job offer, there is no time limit based on when you were released, and the Tennessee FAQ says no felony is a disqualifying factor.
How the Work Opportunity Tax Credit helps felons get hired
The WOTC is a federal credit for employers who hire from targeted groups. Cornell’s ILR School explains that people with records qualify when they are hired within a year of a felony conviction or of release from prison for that felony.
The U.S. Chamber’s guide says the WOTC is generally equal to 40% of up to $6,000 of wages for someone in their first year who performs at least 400 hours of service. The maximum tax credit is generally $2,400. A 25% rate applies to wages for someone who performs fewer than 400 but at least 120 hours of service.
Timing matters. As of the U.S. Chamber’s guide published September 13, 2024, the credit covered people who begin work on or before December 31, 2025. That date has passed, so ask the employer or your state workforce agency whether the credit is available for your start date.
The paperwork mostly falls to the employer, but you take part at the start:
- On or before the day of the job offer, you and the employer complete Form 8850.
- The employer sends it with ETA Form 9061 to the state workforce agency within 28 calendar days after your start date.
- Once the agency certifies you, a taxable employer files Form 5884 to claim the credit.
Steps to take before you apply
A little preparation makes it easier for an employer to use these programs.
- Wait for a firm job offer. Kansas Commerce lists a firm job offer as a condition for bonding.
- Check how you will be paid. The bonded person must earn wages with federal taxes deducted, so self-employed work does not qualify.
- Know your dates. Keep your conviction and release dates handy, since the tax credit depends on when you are hired.
- Tell the employer the programs exist. Point them to their State Bonding Coordinator or workforce agency.
Bond requests need your full legal name, so if your documents are missing, start with how to get an id after prison. For help beyond these two incentives, read about reentry programs for felons.
Limits to know before you rely on these programs
- The bond does not follow you. Per the Tennessee FAQ, it will not automatically transfer to a new job, and a new employer must apply again.
- The new hire cannot be a previous employee or related to the employer, with a narrow exception for promotions.
- The employer cannot claim the WOTC for employees who are rehired, according to the U.S. Chamber.
- State rules still apply. As of 2016, West Virginia’s code listed 143 regulations affecting employment and licensing for people convicted of a felony.
Check the licensing rules for your target occupation in your own state before you invest in training.
Frequently asked questions
Does a felony disqualify me from the Federal Bonding Program?
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No. The Tennessee FAQ says no felony is a disqualifying factor and that there is no time limit counted from your release.
Do I pay for the bond?
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No. The U.S. Chamber’s guide says the bond protects employers at no cost to the job applicant or the employer during the first six months.
What happens when the six months end?
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The Tennessee FAQ says the employer may let the bond expire or buy a commercial bond to continue the coverage.
Can I be bonded if I am self-employed?
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No. Kansas Commerce says the bonded person must be an employee earning wages with federal taxes deducted.
Does the tax credit lower my pay?
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The sources describe the WOTC as a credit for employers, and they do not say it changes what you are paid. You can ask the employer how they handle it.
