A recent federal jury verdict in Michigan has brought renewed attention to the compliance risks faced by employers that utilize the H-2A visa program, particularly when working with third-party labor contractors. On June 6, 2025, a jury in the U.S. District Court for the Western District of Michigan awarded $555,000 in damages to five Guatemalan agricultural workers after finding that Purpose Point Harvesting LLC, a farm labor contractor that supplies H-2A workers to various farms in Michigan, engaged in forced labor and violated both federal and state labor laws. The damages included $450,000 in punitive damages under the federal Trafficking Victims Protection Reauthorization Act.
The workers were recruited to the U.S. between 2017 and 2019 to perform seasonal agricultural labor on H-2A visas. They alleged they were subjected to grueling work schedules — sometimes exceeding 100 hours a week — without being paid for all hours worked. The jury heard evidence that Purpose Point confiscated the workers’ passports and Social Security cards, charged them illegal recruitment fees, provided substandard housing and threatened immigration consequences if they complained. These findings led the jury to conclude that the workers had been coerced into accepting exploitative conditions.
The verdict underscores the reality that H-2A program violations — particularly those involving coercion, document retention or wage theft — can give rise not only to civil penalties and debarment from the program, but also to substantial liability under anti-trafficking laws. Employers should view this case as a serious warning that even perceived missteps in the administration of H-2A contracts can result in high-stakes litigation.
In addition, employers that receive federal funding — such as U.S. Department of Agriculture (USDA) or Farm Services Agency (FSA) grants, cooperative agreements or other government contracts — should be aware that violations involving forced labor may trigger even broader consequences beyond immediate penalties. Specifically, labor-related offenses can lead to suspension or debarment under Title 29 of the U.S. Code, which is the body of federal law that governs labor standards in the U.S. Title 29 covers wage and hour rules, worker protections and employment conditions — including those that apply to H-2A workers.
Violations under this title can disqualify an employer from participating in federal programs and receiving federal funding, for example, programs and funding administered under the USDA or FSA. Moreover, a finding of forced labor can render an employer “not presently responsible” under federal acquisition rules, making them ineligible for future contracts or funding opportunities. Many federal agreements — including some in the agriculture and defense sectors — explicitly require the disclosure of actual or suspected forced labor violations, further raising the compliance stakes for recipients of public funds.
Farms that utilized Purpose Point Harvesting LLC may also face significant downstream consequences, even if they were not directly involved in the misconduct. These include potential joint employer liability, Department of Labor (DOL) enforcement actions, reputational harm and increased scrutiny or delays in future H-2A applications. Farms could also be subject to separate civil litigation or claims brought by affected workers. Given these risks, it is critical for employers to thoroughly vet farm labor contractors and maintain clear oversight of all third-party labor arrangements.
To mitigate these risks, employers should take immediate steps to ensure full compliance with H-2A program requirements.
Key compliance takeaways from the Purpose Point case include:
- Carefully vet and monitor farm labor contractors. Farms that rely on third-party labor contractors to supply H-2A workers remain legally responsible for ensuring those contractors comply with all applicable labor and immigration laws. Verify that your farm labor contractors are registered with the DOL. Perform due diligence, require written compliance commitments and conduct regular audits to mitigate legal and reputational risks.
- Do not charge recruitment fees. H-2A employers and their agents may not require or permit workers to pay fees related to their recruitment, including payments to overseas labor recruiters.
- Never retain identification documents without voluntary written consent. Holding passports or Social Security cards without clear, written and revocable consent can be construed as a form of coercion.
- Pay for all hours worked. Employers must accurately track and pay for every hour worked and should ensure that any overtime obligations under federal or state law are satisfied.
- Do not permit H-2A workers to perform tasks outside the agricultural job order. All H-2A employment must align with the job duties described in the certified job order submitted to the DOL. Assigning H-2A workers to perform non-agricultural tasks can trigger additional obligations — such as the requirement to pay overtime under federal and state wage laws. While agricultural work is generally exempt from overtime pay, that exemption does not apply if workers engage in non-agricultural labor. Since the H-2A program strictly limits employment to agricultural duties, employers who adhere closely to the certified job order should not incur overtime liability.
- Ensure housing meets legal standards. Employer-provided housing must comply with DOL and applicable state regulations. Inadequate or overcrowded housing conditions can lead to claims of mistreatment.
- Avoid threats of immigration consequences. Any suggestion that a worker’s visa status could be jeopardized for raising concerns or refusing unlawful directives may be considered coercive conduct under trafficking laws.
H-2A labor has become an essential resource for U.S. farmers facing persistent labor shortages. With native-born workers often unwilling or unavailable to perform demanding seasonal agricultural work, foreign-born workers make up a substantial portion of the farm labor force. Approximately half of all agricultural workers in the U.S. are foreign-born, and the H-2A program alone accounts for over 275,000 certified positions annually, fulfilling more than 87% of employer requests. While H-2A workers represent about 10% of the total crop labor force, their role is critical in ensuring timely planting, cultivating and harvesting of fruits and vegetables. In Michigan, the reliance on foreign-born labor is even more pronounced. While foreign-born workers constitute a small percentage of the state's employed population, they account for a disproportionately large number of agricultural workers, particularly in labor-intensive roles such as hand-harvesting crops. Given this reliance, the H-2A program is a vital tool for many farms — but with that reliance comes a heightened responsibility for employers to maintain strict compliance with all program requirements to avoid significant legal and operational risks.
