The H-2A Farm Labor Contractor Bond is required by the United States Department of Labor, Wage and Hour Division. The H-2A Farm Labor is a program that allows farmers to hire non-U.S. Citizens from other countries in order to meet the high demand for labor during harvest season. The H-2A temporary agricultural program allows agricultural employers who anticipate a shortage of domestic workers to bring non immigrant foreign workers to the U.S. to perform agricultural labor or services of a temporary or seasonal nature. Employment is of a seasonal nature where it is tied to a certain time of year by an event or pattern, such as a short annual growing cycle, and requires labor levels above what is necessary for ongoing operations. Read more about the H-2A Farm Labor Contractor requirements.
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The Migrant and Seasonal Agricultural Worker Protection Act (MSPA) protects migrant and seasonal agricultural workers by establishing employment standards. Any person who is subject to MSPA as a Farm Labor Contractor (FLC) must register with the Department.
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.
How do I get an H-2A Farm Labor Contractor Bond?
At surety1.com we provide an easy, three step process to obtain your H2A surety bond:
- Complete our easy to use, online application and attach the ETA form 790.
- Usually within, one business day, receive your free, no obligation quote.
- Sign some paperwork, and pay for your bond (all major credit cards accepted).
That’s it. after completing these 3 steps, your H-2A Farm Labor Contractor Bond will be delivered to you via traceable mail. Overnight delivery is also available. you must sign the bond before turning it into the DOL.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Surety1.com is the premier online provider of surety bonds nationwide since 2003. Surety 1 maintains an A+ rating by the Better Business Bureau and is licensed in all 50 states to handle all of your bond needs.
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.
What is the term of the H-2A Surety Bond?
The term of the H-2A surety bond must cover the term of the work contract period listed on the H-2A Application + 2 years. A copy of the accepted job offer (ETA form 790) will be required as part of the underwriting process.
The H-2A Farm Labor Contractor Bond is to protect the H-2A workers from unscrupulous FLCs. This is not insurance. If there is a claim placed on your bond and you are found at fault, the surety company will pay out. However, unlike insurance, the applicant will have to pay the surety company back.