FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Purchasing a surety bond is part of the process for becoming certified by the U.S. Department of Labor as an H-2A farm labor contractor (FLC). The H-2A designation allows agricultural employers to bring workers into the U.S. from another country in anticipation of a shortage of U.S. residents to fill seasonal or temporary jobs.
One of the requirements for becoming a certified labor contractor is obtaining an H-2A Farm Labor Contractor surety bond to ensure the contractor’s compliance with the many Department of Labor rules governing migrant or seasonal workers. The purpose of the bond is to protect H-2A workers from unfair and unethical treatment by a farm labor contractor and relieve the federal government of liability for the acts of unscrupulous FLCs.
Any applicant for certification as an H-2A farm labor contractor is required to obtain an H-2A surety bond in the amount corresponding to the number of employees allowed under the applicant’s labor certification:
| Number of Employees |
Required Bond Amount |
| Fewer than 25 | $5,000 |
| 25 – 49 | $10,000 |
| 50 – 74 | $20,000 |
| 75 – 99 | $50,000 |
| 100 or more | $75,000 |
An H-2A bond must cover the work contract period shown on the H-2A certification application and extend for two years after the labor certification’s expiration date. During the time that the temporary laborers are employed under the work contract, the farm labor contractor must abide by the employment standards established by the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). Failure to do so can result in claims being filed against the bond.
There are three parties to an H-2A bond contract:
The contract spells out what the principal must do to remain in compliance. If an FLC violates any of the bond’s terms and conditions, a claim can be filed against the bond by the DOL Administrator in order to collect any wages or benefits, plus interest, owed to the affected H-2A workers. The surety will pay any valid claim on behalf of the principal, but that doesn’t let the FLC off the hook. The indemnification clause included in the surety bond contract legally obligates the principal to reimburse the surety.
The larger the amount of an H-2A bond, the more risk the surety is assuming, so the creditworthiness of a bond applicant is the primary concern. The surety needs to be confident that the principal can reimburse any claims paid out against the bond, so the personal credit score of the FLC is a key consideration when determining the premium rate. The surety will also look closely at the FLC’s experience, particularly with regard to history of claims against H-2A bonds in the past.
Applicants with good credit typically pay a premium rate of between 1% and 5% of the required bond amount.
Absolute Surety agents are here to help you get the bonds you need. We welcome questions and request for quotes from farm labor contractors seeking an H-2A bond.
