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Pre-employment costs associated with H-2A agricultural workers and the effects of the ‘60-minute rule’

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  • Roka, Fritz m.
  • Simnitt, Skyler
  • Farnsworth, Derek

Abstract

Agricultural employers increasingly are turning to the foreign guest worker program, known as H-2A, as a means to secure a legal workforce. This paper outlines the procedural aspects and costs of recruiting and hiring H-2A workers. Cost data is from a 2014 survey of citrus harvesters and defines pre-employment costs as filing fees, advertising, surety bonds, travel, and housing. The pre-employment costs associated with guest workers are estimated to be nearly $ 2,000 per worker. The survey was motivated by the ‘60-minute rule’ imposed by the U.S. Department of Labor prior to the 2012-13 citrus harvesting season. Cost data were collected across two crop season, 2012-13 and 2013-14, to analyze the cost implications of the rule. We found that the 60-minute rule significantly increased filing fees. These fees, however, represent a very small share of total costs and overall pre-employment costs associated with the H-2A program did not significantly change.

Suggested Citation

  • Roka, Fritz m. & Simnitt, Skyler & Farnsworth, Derek, 2016. "Pre-employment costs associated with H-2A agricultural workers and the effects of the ‘60-minute rule’," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(3), December.
    • Handle: RePEc:ags:ifaamr:264228
    DOI: 10.22004/ag.econ.264228
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