Jose M. Gracia Harvesting, Inc.
Outcome
A DOL administrative law judge approved a $249,000 settlement against Jose M. Gracia Harvesting, Inc. in March 2022, requiring approximately $70,000 in back wages to workers plus $180,000 in civil penalties after the Florida farm labor contractor violated H-2A visa program requirements, MSPA housing standards, and FLSA minimum wage requirements by failing to provide adequate worker housing, allowing rodent and fly infestations, and denying workers required meals and kitchen access.
Details
Jose M. Gracia Harvesting, Inc. — H-2A and MSPA Violations (2019–2022)
Outcome: A DOL administrative law judge approved a $249,000 settlement against this Florida farm labor contractor in March 2022 for H-2A program violations, MSPA housing and transportation failures, and FLSA minimum wage shortfalls affecting migrant workers in Florida, Georgia, and North Carolina.
Background
Jose M. Gracia Harvesting, Inc. is a Frostproof, Florida-based farm labor contractor that recruits, transports, and supplies H-2A agricultural workers to farms in Florida, Georgia, and North Carolina. The company contracts with Melon 1, described as one of the nation's largest melon distributors, to provide harvest labor.
H-2A is the federal guest worker visa program for temporary agricultural workers. Employers using H-2A workers must comply with U.S. Department of Labor regulations governing wages (at least the Adverse Effect Wage Rate), housing, transportation, meal provision, and worker protection disclosures. The Migrant and Seasonal Agricultural Worker Protection Act (MSPA) provides additional worker protections.
Violations Found
DOL Wage and Hour Division investigators found that Jose M. Gracia Harvesting, Inc. violated multiple federal labor laws:
H-2A Visa Program Violations:
- Failed to provide and maintain adequate housing for approximately 80 H-2A workers (men and women)
- Failed to prevent rodent and fly infestations in worker housing
- Failed to secure meals for workers or provide sufficient kitchen facilities as required under H-2A program rules
MSPA Violations:
- Housing and transportation safety requirements were not met
FLSA Violations:
- Minimum wage violations resulting from unlawful deductions or failure to pay required wages, producing back wages owed to workers
Settlement
On March 10, 2022, a U.S. Department of Labor administrative law judge approved a settlement agreement:
- Back wages: Approximately $70,000 to affected workers
- Civil money penalties: $180,000
- Total settlement: Approximately $249,000
- Compliance monitoring: The company was required to retain a DOL-approved third-party auditor to conduct audits and monitor future H-2A contract compliance
Context
This case is representative of a broader pattern of H-2A enforcement in the Southeast. In fiscal year 2022, DOL's Southeast Region found violations in 85% of approximately 220 completed agricultural employer investigations, with employers owing more than $2.6 million in back wages to nearly 2,900 workers.
How Crucible Prevents This
H-2A program compliance requires farm labor contractors to maintain housing that meets federal and state standards, provide or arrange adequate meals, and pay no less than the Adverse Effect Wage Rate. When contractors supply workers to large produce distributors, the chain of accountability extends to the ultimate agricultural employer. A Crucible-style compliance protocol for agricultural operations using H-2A labor would include: pre-season housing inspection documentation, monthly wage rate reconciliation against the AEWR, and signed worker acknowledgment forms for all H-2A required disclosures. The housing pest infestation findings — rodents and flies in worker dormitories — represent a basic operational failure that should have been caught by any routine housing inspection.
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