WORK FORCE SERIES: Seasonal Worker Recruitment Options

The leaders at Bauer Lawn Maintenance in Maumee, Ohio, are, quite frankly, in a quandary. The company has participated in the federal H-2B guest-worker visa program since 1991 and hoped to bring in 40 workers this spring. But the program’s cap of 66,000 visas was met Jan. 3 this year, and a legislative provision that allows returning-workers to be exempt from the cap has stalled in Congress.

With no returning-worker exemption, the firm will lose 70 percent of its seasonal workforce. As the window of opportunity for Congress to act narrows every day, business manager Ken Rau says the firm is weighing its options. One thing is certain – with no H-2B workers, there will be cutbacks. The company is holding off on hiring three supervisory jobs, including an estimator/project manager, an administrative position and a field supervisor. “We’re not going to hire them for this season, but if we got the H-2B workers, we’d have to bring in those positions.”

The worst case scenario is people will lose their jobs. To prevent this from happening Rau will continue to recruit locally, which the H-2B program requires him to do. But like most contractors, he isn’t optimistic. Rau’s most recent advertisement on the state unemployment agency Web site yielded one response.

As companies look to fill their field labor positions this year and plan for how they’ll do so in the future, they have a lot to consider. Whether companies use an all local workforce, hire illegal immigrants or bring in guest workers through the H-2B program, they’re likely going to feel a pull on their labor forces this spring – either directly or indirectly as competitors who rely on H-2B or illegal workers may be scrambling for legal local workers

Here’s a look at several legal options companies have when seeking seasonal employees – and the pros and cons of each.

H-2B Visa Program

The federal visa program is the only legal method for non-agricultural employers in to hire seasonal foreign workers. To qualify for the program, companies must demonstrate a seasonal or peak-load need between four and 10 months. The months-long application process includes filing paperwork with the state employment security agency and the U.S. Department of Labor, in addition to advertising locally to prove need. Though it’s not required any employers arrange housing and transportation for their H-2B employees. Cultural and language differences can be a logistical concern.

Employers pay H-2B workers the prevailing wage, as set by the Department of Labor, which reflects the average wage being paid to workers in the same industry, position and area. Employers also pay government processing fees and employment advertising costs. Many companies hire labor agents or immigration attorneys to facilitate the process. While the H-2B program is seen as a win-win by many employers, the program is still imperfect, and coming to rely on a program that lacks a market-based cap can present problems, as it has this year with Congress failing to extend the returning-worker exemption.

H-2B “In-Country” or “Snow Country” Worker Programs

H-2B workers are able to extend their visas for up to three consecutive years without leaving the U.S., which allows for workers to apply to work at firms with opposite season needs that have H-2B labor certifications. This process requires the employee to file a petition for a visa extension with U.S. Citizenship & Immigration Services. Firms typically recruit and coordinate hiring in-country workers with the help of labor agents or attorneys. Timing and worker skill levels may be of concern to employers, as they depend on the industries in which the worker is coming from.

Agency and attorney fees vary. Because these workers are in demand, pay rates are an important part of in-country worker recruitment, according to Rachel Anthony, regional manager for Alliance Abroad Group, an international staffing firm.

U.S. Territory Recruitment

Workers from U.S. territories like Puerto Rico, the U.S. Virgin Islands, American Samoa and Guam do not need visas to legally work in the U.S. because they have U.S. citizenship status. In addition, many of these areas have high unemployment rates (Puerto Rico’s is more than 11 percent). Labor agencies and employer groups may assist with recruiting workers in U.S. territories. This strategy is one “safety net” measure the Federation of Employers and Workers of America has implemented this year as a result of pressures on the H-2B program, FEWA's President Scott Evans says. Realistically, recruiting workers in U.S. territories can be an expensive proposition for employers (who typically cover transportation costs); flights from American Samoa and Guam top $1,000, Evans says. Much like the H-2B program, many employers also provide housing. However, there may be political repercussions of recruiting from territories. It’s likely the practice will draw fire from unions and anti-immigration groups and may provide H-2B opponents with evidence that no guest-worker programs are needed.

Native American Jump Start to Employment Program

The non-profit organization founded by the Federation of Employers & Workers of America matches employers with willing workers from Native American reservations, where unemployment rates can be as high as 85 percent. Eligible workers must be 18-years-old and recent high school graduates. Like employing local high school and college students, timing can be an issue for employers, as recent graduates may not be available until mid-June. Otherwise, FEWA provides the workers with $100 and a round-trip bus ticket to the employer. Employers and workers agree on pay rates; it’s recommended that employers cover housing, transportation and necessities for the first month.

High school/college students

High school and college students have long been the backbone of seasonal help for many landscape companies; however, their schedules can pose some problems. Because of the uncertain labor situation this year, Pro Scapes of Jamesville, N.Y., has been recruiting at local colleges that offer green industry programs. “We’ve got a plethora of interested students,” says vice president Colette Gleason. “Unfortunately they won’t be available to May.” The company begins work in March. Students also typically end their summer jobs in late August, well before the end of the landscape season. The Department of Labor regulates youth labor and places restrictions on the jobs teenagers may perform (including operating a motor vehicle, excavating and others.) For more information, visit www.osha.gov/SLTC/teenworkers/landscaping/landscaping.html. Student workers are typically paid the same wages as any laborer of similar skill and experience levels.

Temporary agency workers/subcontractors

Subcontracting out more work or hiring workers through local temporary agencies can be a short-term fix for companies who need to fulfill existing commitments. Quality, efficiency and safety are all things to take into consideration, as workers are typically unskilled and untrained. “I think we’d rather not do the work than throw inexperienced people out there and create a problem,” says Ken Rau, business manager for Bauer Lawn Maintenance, Maumee, Ohio.

Temporary workers are typically paid the same wages as all laborers of similar skill and experience levels. Because companies may be liable in the event the temp agency or subcontractor employs illegal workers, contractors should research subcontractors’ and temp agencies’ backgrounds and/or work with legal counsel to develop a contract with an indemnity clause that states the third party verifies workers’ legal status, attorney Sean Lewis says.