In a recent revelation, the U.S. Department of Labor (DOL) has successfully recovered $540,221 in wages for 268 H-2A workers from a father and son, operating as North Carolina farm labor contractors. The violations by the farm labor contractors included failing to pay some workers their full wages, providing unsafe and inadequate housing, and neglecting to reimburse workers’ transportation costs. 

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Labor Contractor Failed to Pay Employees Full Wages and Provided Unsafe Housing 

The federal Fair Labor Standards Act and the H-2A program, aimed at enabling agricultural employers to employ temporary non-immigrant workers, ensure protection for all individuals working in the U.S., regardless of their immigration status. 

The investigations conducted by the DOL’s Wage and Hour Division revealed that the farm labor contractors based in Florida, recruited, hired, housed, and transported H-2A workers for agricultural tasks at various farms in North Carolina, including harvesting sweet potatoes, cucumbers, and tobacco. 

Several H-2A program violations were found, including failing to provide employees with copies of their work contracts, violating job orders’ requirements, and not offering meals or access to kitchen facilities. Additionally, the employers did not pay the required adverse effect wage rate to specific H-2A workers performing non-agricultural duties. Moreover, they failed to disclose daily meal deductions in the H-2A contract and did not reimburse inbound transportation expenses as per the contract terms. 

The violations extended to inadequate housing conditions, as the farm labor contractors failed to meet safety and health requirements by not furnishing workers’ housing with necessary safety equipment, potentially exposing them to harm. 

The Result 

Apart from the recovered wages, the DOL assessed civil money penalties, with $12,526 and $21,257 for the farm labor contractors. The latter was also debarred from participating in the H-2A program for three years.  

Richard Blaylock, the District Director of the Wage and Hour Division, emphasized that farm laborers are among the nation’s essential workers, deserving legal protection regardless of their residential status. He emphasized the need to hold employers accountable for jeopardizing agricultural workers’ safety, health, and wages. 

During fiscal years 2022 to 2023, the Wage and Hour Division identified violations in over 92 percent of the investigations in North Carolina’s sweet potato agriculture industry. These investigations recovered substantial back wages and assessed penalties, underscoring the necessity for compliance with labor laws and regulations. 

The H-2A program provides farmers with essential labor, but it is crucial that this doesn’t compromise workers’ safety and well-being. Employers must take proactive steps to ensure full compliance with all regulations when hiring labor contractors. 

Conclusion 

The DOL’s Wage and Hour Division is committed to assisting businesses and workers alike in understanding and complying with labor laws and regulations, fostering a fair and safe working environment for all. Compliance assistance resources are readily available to support businesses in adhering to labor laws and creating a conducive workplace. It is imperative for businesses to prioritize compliance and ensure that their operations align with legal requirements, protecting both their employees and their business reputation. 

Asure’s HR experts help business owners comply with federal, state, and local employment laws. Learn how to protect your business here. 

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