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The H-2A Farm Labor Contractor Bond is a type of surety bond required by the United States Department of Labor, Wage and Hour Division. The bond amount varies (see below) and the cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150.

How to get an H-2A Farm Labor Contractor Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, four step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. A copy of the accepted job offer (ETA form 790) will be required as part of the underwriting process.
4. Sign some paperwork and pay the bond premium

Once these steps have been completed, the H-2A farm labor contractor bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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What H-2A Farm Labor Contractor Bond Amount Do I Need?

• $5,000 for a labor certification with fewer than 25 employees;
• $10,000 for a labor certification with 25 to 49 employees;
• $20,000 for a labor certification with 50 to 74 employees;
• $50,000 for a labor certification with 75 to 99 employees; and
• $75,000 for a labor certification with 100 or more employees.

These are the base bond amounts that are then adjusted for the average average Adverse Effect Wage Rate (AEWR) in effect at the time of bond submission. The average AEWR is calculated by the U.S. Department of Labor and is published quarterly. To calculate the adjusted bond amount, the base bond amount is multiplied by the average AEWR and divided by $9.25. The AEWR is calculated by the U.S. Department of Labor (DOL) each year.

Frequently Asked Questions (FAQs)

Q. What is an H-2A farm labor contractor bond?
A. An H-2A farm labor contractor bond is a type of surety bond required by the U.S. Department of Labor (DOL) for contractors who recruit, solicit, hire, or transport agricultural workers under the H-2A visa program. It ensures compliance with federal regulations and protects workers from financial harm. 

Q. Who needs an H-2A farm labor contractor bond?
A. Any farm labor contractor (FLC) or agricultural employer who participates in the H-2A program and engages in recruiting, hiring, or transporting workers must obtain this bond. The FLC must be issued an Farm Labor Contractor Certificate of Registration prior to starting any farm labor contracting activity. To obtain the Certificate of Registration, an H-2A Surety Bond will need to be provided.

Q. What is the purpose of the bond?
A. The bond guarantees that the contractor will comply with the terms of the H-2A program, including paying wages, providing safe working conditions, and adhering to contractual obligations. It also provides financial recourse for workers if the contractor violates these requirements.

Q. How much does an H-2A bond cost?
A. The bond amount is set by the DOL and the cost to the contractor (premium) is a percentage of the bond amount, usually 1-3%, depending on creditworthiness and other factors.

Q. How do I obtain an H-2A farm labor contractor bond? A.
A. You can obtain the bond by clicking here. The process involves completing an application, possibly providing financial documentation, and paying the premium.

Q. What happens if a claim is made against the bond?
A. If a worker or the DOL files a claim for unpaid wages or other violations, the surety company will investigate. If the claim is valid, the surety will pay up to the bond amount. The contractor is then responsible for reimbursing the surety for the claim amount.

Q. Can I cancel an H-2A bond?
A. No, once issued, and H-2A farm labor contractor bond cannot be cancelled. 

Q. What happens if I don’t get an H-2A bond?
A. Failure to obtain the required bond can result in penalties, including fines, loss of eligibility to participate in the H-2A program, and legal action by the DOL.

Q. Is the bond the same as workers’ compensation insurance?
A. No, the H-2A bond is not the same as workers’ compensation insurance. The bond ensures compliance with H-2A regulations, while workers’ compensation insurance covers medical expenses and lost wages for workers injured on the job.

Q. How long does it take to get an H-2A bond?
A. The process usually takes 1 to 3 business days.

Q. Can I get a bond with bad credit?
A. Usually yes, but it may be more expensive. Surety1 specializes in providing bonds for those with challenged credit.

Q. Is the bond premium refundable?
A. No, the premium paid for the bond is non-refundable, as it is the cost of the surety’s financial guarantee.

Q. Do I need a new bond for every contract?
A. Yes, the term of the H-2A surety bond must cover the term of the work contract period listed on the H-2A Application.  A copy of the accepted job offer (ETA form 790) will be required as part of the underwriting process.

 Additional Resources

• Read more about the H-2A Farm Labor Contractor requirements from the DOL
• Visit our 5 Tips for Starting an H-2A Farm Labor Contracting Company Blog
• Visit our Understanding H-2A Surety Bond Requirements: A Comprehensive Guide Blog