H-2A Program: A Vital Tool for Addressing Agricultural Labor Shortages

H-2A Program: A Vital Tool for Addressing Agricultural Labor Shortages. As such, it is likely that the use of the H2A program will increase in 2024. Several factors suggest that this is the case, including:

• Increased labor shortages in agriculture: The U.S. Department of Agriculture (USDA) estimates that there are approximately 100,000 unfilled agricultural jobs in the United States each year. This shortage is due to a number of factors, including an aging farmworker population, low wages, and competition from other industries.
• Rising wages for H-2A workers: The Department of Labor (DOL) recently increased the Adverse Effect Wage Rates (AEWRs) for H-2A workers. These are the minimum wages that employers must pay H-2A workers to avoid adversely affecting the wages of U.S. workers. The increase in AEWRs is likely to make the H-2A program more attractive to employers.
• Streamlined H-2A application process: The DOL has recently implemented a number of changes to the H-2A application process that are intended to make it more efficient for employers. These changes are likely to encourage more employers to use the program.

Given these factors, it is reasonable to expect that the use of the H-2A program will continue to grow in 2024. This could have a significant impact on the U.S. agricultural industry, as it will increase the availability of labor and help to reduce labor costs. However, it is also important to note that there are some potential concerns about the use of the H-2A program, such as the potential for displacement of U.S. workers and the potential for exploitation of H-2A workers. These concerns need to be carefully considered as the program continues to grow.

About the Streamlined H-2A application Process

The Streamlined H-2A application process is a set of changes to the H-2A program that are intended to make it more efficient and user-friendly for employers. These changes were implemented by the U.S. Department of Labor (DOL) in 2019.

Here are some of the key changes included in the Streamlined H-2A application process:

• Electronic filing: Employers can now file H-2A applications electronically through the DOL’s FLAG system. This eliminates the need to paper file applications, which can save time and reduce errors.
• Streamlined application forms: The DOL has streamlined the H-2A application forms, making them easier to complete and understand.
• Reduced processing times: The DOL has reduced the processing times for H-2A applications, which means that employers can get their workers approved more quickly.
• Increased flexibility: The DOL has increased flexibility in the H-2A program, such as allowing employers to use the program for a wider range of agricultural jobs and to request extensions to their H-2A visas.

Here are some of the benefits of the Streamlined H-2A application process:

• Reduced costs: The Streamlined H-2A application process can help employers reduce the costs of hiring and retaining H-2A workers.
• Increased efficiency: The Streamlined H-2A application process can help employers get their workers approved more quickly and efficiently.
• Improved compliance: The Streamlined H-2A application process can help employers comply with the H-2A program regulations.

Here are some of the resources that can help employers learn more about the Streamlined H-2A application process:

• U.S. Department of Labor: https://www.uscis.gov/
• National Association of State Workforce Agencies (NASWA): https://www.naswa.org/

Surety Bonding Requirement for H-2A Contractors

The Surety Bonding Requirement for H-2A Contractors is a regulation that requires employers who use the H-2A program to obtain a surety bond. A surety bond is a type of insurance that guarantees that the employer will fulfill its obligations under the H-2A program, such as paying its workers the wages and benefits they are owed.

Who needs to obtain a surety bond?

Every H-2A program applicant that meets the definition of an H-2A labor contractor (H-2ALC) must obtain and maintain a surety bond throughout the period of time the certification is in effect. An H-2ALC is defined as any person who:

• Meets the definition of employer under 29 CFR part 501
• Recruits, solicits, hires, employs, or utilizes H-2A workers
• Provides housing to H-2A workers
• Supplies food to H-2A workers
• Transports H-2A workers to and from the worksite
• Provides any other services or benefits to H-2A workers

What amount is the surety bond?

The amount of the surety bond is based on the number of H-2A workers that the employer will be employing. The bond amounts are as follows:

• $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
• $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.

How to obtain a H-2A surety bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three 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.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Surety Bond will be shipped to the bond applicant. The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

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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