Federal Farm Labor Contractor Bond
The Immigration and Nationality Act authorizes the lawful admission of temporary H-2A workers to perform agricultural labor or services of a temporary or seasonal nature. This bond guarantees compliance with federal wage and employment regulations governing H-2A workers and corresponding U.S. workers.
What does the bond cover
The bond guarantees compliance with federal wage laws. If you fail to pay the required wage rate or violate other provisions, a claim can occur. Key obligations include:
- Offering and paying at least the highest of the Adverse Effect Wage Rate (AEWR), prevailing wage, CBA wage, federal minimum wage, or state minimum wage
- Adjusting wages if the AEWR or prevailing wage increases during the contract period
- Recruiting U.S. workers at the same wage rate
H-2A farm labor bond requirement
The bond amount depends on the number of H-2A workers you employ.
What is a H-2A labor contractor
An H-2ALC is a person who meets the definition of an "employer" under the H-2A Program and does not otherwise qualify as a fixed-site employer or agricultural association. H-2ALCs engage in recruiting, soliciting, hiring, employing, furnishing, housing, or transporting workers subject to H-2A regulations.
H-2ALCs required to register under MSPA must obtain a Farm Labor Contractor Certificate of Registration prior to engaging in farm labor contracting activity.
Additional requirements for H-2ALCs
In addition to meeting the same assurances and obligations as other H-2A employers, H-2ALCs must:
List the name and location of each fixed-site agricultural business, employment dates, and crop and activity descriptions
Submit copies of work contract agreements with agricultural businesses
Provide proof that all housing and transportation complies with applicable safety and health standards
Obtain and submit the original surety bond with the H-2A application
The surety bond must be written to cover liability during the work contract period and remain in effect for at least 2 years from the expiration date of the labor certification.
Ready to get your bond
Our simple application process makes it easy to secure your H-2A farm labor bond. Start your application today and we'll guide you through every step.
If you or your business needs help in obtaining a surety bond or commercial insurance give us a call!