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Farm Labor Contractor Bonds

Farm Labor Contractor bonds are used to provide a form of protection for employees of a farm labor contractor. The bond provides a form of guarantee that the contractor will pay acceptable wages to the laborers as well as operate in a way that adheres to labor standards. These labor standards can include regulations involving labor recruitment, worker termination, pay rates and guaranteed hours among other considerations.

Farm Labor Contractor bonds can be required at the federal level by the U.S. Department of Labor Wage and Hour Division and at the state level as well. State level farm labor contractor bond amounts vary state to state. Usually there is a minimum bond amount with higher bond amounts required based on the number of employees. The U.S. Department of Labor required 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

The bonding process for Farm Labor Contractor Bonds is typically simple and easy. Outside of a bond application and credit check, a financial statement is usually helpful in getting a more preferable rate. Quotes for these bonds are usually received the same day or within 24 hours.

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