Employer's requirements to employ H2A workers

• Wages:  DOL establishes the applicable H2A wage rate, Adverse Effect Wage Rate (AEWR). The employer pays the higher of either the AEWR or the state prevailing wage rate to both US and H2A workers.
• Three-fourths Guarantee:  The employer must guarantee that workers will have the opportunity to work at least three-fourths of the total hours in the contact period. This includes both actual hours worked, as well as hours offered. This guarantee is calculated as a percentage of all the working hours in the season as specified by the employer.
• Recruitment:  The employer is required to place newspaper ads in an attempt to recruit US workers who are able, willing, and qualified to perform the job and must cooperate with the State Workforce Agency in the referral of US workers. Agri Placements facilitates the advertising requirement as part of our services to the employer as required by DOL.
• Housing:  The employer must provide free housing to workers who are not reasonably able to return to their residences that same day. Such housing must be inspected and approved by the State Workforce Agency prior to DOL approval.
• Meals:  The employer must provide free and convenient cooking facilities to the workers so they may prepare their own meals OR provide three meals per day and be reimbursed by the workers for the cost up to federally specified limits per day.
• Transportation:  They employer reimburses the workers' cost of inbound transportation from their homes abroad to the place of employment after completion of fifty percent of the contract; and outbound transportation costs to their homes abroad, or to the workers' next job site, at the end of the season. The employer must also provide free transportation between the provided housing and the worksite.
• Worker's Compensation Insurance:  The employer must provide worker's compensation insurance for all workers.
• Tools & Supplies:  The employer must provide the tools and supplies necessary to perform the job duties at no cost to the workers.
• Taxes:  H2A workers are exempt from US Social Security and Medicare taxes. Payments made to workers are not considered to be "wages" for the purpose of Form 1099 reporting; employer should not withhold income tax. However, employer must issue a Form 1099-Misc if the amount paid to the worker during the calendar year equals or exceeds $600.