Federal & Healthcare
H-2A Labor Contractor Bond
A federal bond that an H-2A labor contractor must file with its application to bring in temporary foreign farmworkers.
- Required by
- U.S. Department of Labor (Office of Foreign Labor Certification and Wage and Hour Division)
- Bond amount
- Set by 20 CFR 655.132(c) by number of workers: base of $5,000 (under 25 workers) up to $75,000 (100 or more), then adjusted by the Adverse Effect Wage Rate. DOL can require more.
What this bond guarantees
The bond promises the U.S. Department of Labor that the labor contractor will pay the wages and benefits owed to H-2A workers, workers in corresponding employment, and U.S. workers who were wrongly rejected, laid off, or displaced. After a final decision finds violations, the Wage and Hour Administrator can demand payment from the surety, plus interest. The demand can come up to 3 years after the labor certification expires.
Who needs it
- H-2A labor contractors (H-2ALCs)
- Farm labor contractors placing temporary foreign agricultural workers with growers
What the underwriter looks at
- Number of workers on the labor certification
- Owner credit
- Contractor experience and compliance history
- Financial statements for larger crews
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Do growers who hire H-2A workers directly need this bond?
No. The bond requirement applies to H-2A labor contractors, not to growers who are the direct employer. Check with DOL if your arrangement mixes the two.
How is the bond amount figured?
Federal rules set a base amount by crew size, from $5,000 for fewer than 25 workers to $75,000 for 100 or more. That base is then adjusted for the current Adverse Effect Wage Rate, and very large crews add more. DOL can raise the amount if it finds the bond is not enough.
How long does the bond stay at risk?
DOL has 3 years after the labor certification expires, including extensions, to make a demand on the bond. An enforcement action pauses that clock.