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H-2A Farm Labor Contractor Surety Bond

What is an H-2A Farm Labor Contractor Bond?

  • The H-2A Farm Labor Contractor Bond or U.S. Department of Labor Surety Bond is a surety bond required to be posted by anyone wanting to apply to be certified under the H-2A program to recruit, solicit, hire, employ, furnish, house, transport temporary or seasonal, nonimmigrant agricultural workers under the Immigration and Nationality Act, and who is required to obtain a Certificate of Registration by the Migrant and Seasonal Agricultural Workers Protection Act.
  • The H-2A temporary agricultural program was created to allow agricultural employers to bring nonimmigrant foreign workers to the United States in order to provide temporary or seasonal agricultural labor if the employer anticipated a shortage of domestic workers.
  • This U.S. Department of Labor bond has various bond amounts that depend on the number of employees hired:
    • $5,000 for up to 24 H-2A workers
    • $10,000 for 25 to 49 H-2A workers
    • $20,000 for 50 to 74 H-2A workers
    • $50,000 for 75 to 99 H-2A workers
    • $75,000 for 100 or more H-2A workers
  • This surety bond - which we call an H2A bond or an H-2a farm labor bond is a guarantee to the U.S. Department of Labor that the employer of the contracted labor workers will abide by the regulations required under this program. These regulations are rather extensive and detailed. So, you need to make sure you're well informed in order to abide by these regulations that the bond guarantees your compliance with. As an example, here are some requirements: a specific work order which must be approved for each project seeking workers, documented efforts to recruit US workers for the positions, a detailed work contract provided to every worker, minimum rates of pay, guaranteed number of hours, safe and adequate housing, provisions for three meals per day or facilities for preparation, daily transportations, reasonable inbound and outbound expenses, proper payroll records, and compliance with all applicable laws and regulations.

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H-2A Farm Labor Contractor Bonds are individually underwritten so the cost can vary and is primarily dependent on the credit score of the applicant as well as experience; sometimes, business financials may be required depending on credit standing and the surety bond amount. Customers with good credit scores (generally 680 or higher) could qualify for rates as low as 1% of the bond amount (so, $100 for a $10,000 bond). Of course, we will always provide you with the lowest rates available on the market. And can typically handle all credit types — from excellent to poor — as such those terms vary.

The H-2A Farm Labor Contractor Bond assures the principal will comply with the many rules and requirements for being certified including fair treatment, payment of wages and benefits, and working conditions. These provisions are found in Section 501.9 and 20 CFR part 655 subpart B of the Code of Federal Regulations.

The U.S. Department of Labor requires the H-2A Surety Bond for Farm Labor Contractors. As such, the Obligee on the bond is the Administrator, Wage and Hour Division, United States Department of Labor, 200 Constitution Avenue, NW., Room S-3502, Washington, DC 20210.

The H-2A Temporary Farm Labor Bond runs through the term of each approved work order (less than one year) and must remain in force for two years after the work under the order has been completed. This surety bond may be canceled or terminated with at least 45 days’ notice from the Surety.

Contact The ProSure Group. As surety bond experts in business over 23 years in Florida, The ProSure Group has handled numerous bonds of this type and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.

There are many forms and requirements that need to be met before performing any “farm labor contracting activities.” To simplify the process, the U.S. Department of Labor allows employers to submit their H-2A applications electronically. The Department also provides a Quick Start Guide and User Manual online that will help provide instructions for completing and submitting the entire H-2A application package. Farm labor employment contractors are required to apply for a Certificate of Registration from the U.S. DoL. The required application form is Form WH-530. Once the application is approved, you will be issued a Farm Labor Contractor (FLC) Certificate of Registration; at that time you may begin to engage in the authorized activities. There may be additional forms/documentation required depending upon the specific activities of which are being sought for authorization. It is best to reach out to the Dept. of Labor with any questions regarding the application process.

If you don't see the bond you're looking for give us a call at (800) 480-3883 and speak to one of our many
H-2A Farm Labor Contractor Bonds Surety Bond Experts!
Type Bond Obligee Bond Amount
License H-2A Farm Labor Contractor Bond U.S. Department of Labor, Wage and Hour Division
Varies