The U.S. Department of Labor has taken action against a father and daughter from Snow Hill, North Carolina, by barring them for three years from participating in a federal program due to violations of federal regulations. The department's Wage and Hour Division discovered that Reymundo Perez Guzman had committed multiple violations as an unregistered farm labor contractor, leading to $9,336 in civil penalties. An investigation revealed that Guzman was operating under his daughter Yadira Perez Gamas' name.
Yadira Perez Gamas had applied to hire temporary workers through the H-2A program while her father managed the planting and harvesting operations. This included recruiting workers for crops such as cucumbers, sweet potatoes, and tobacco and transporting them to various farms. Additionally, Perez Guzman owned the labor camps where employees were housed. The division found that he unlawfully sent H-2A workers beyond their contracted duties to other locations like Web Roberts Farm in Statonsburg and a local metal recycling center.
Richard Blaylock, Wage and Hour Division District Director in Raleigh, stated: "The H-2A temporary agricultural program provides U.S. farmers with the workers needed to harvest crops and help businesses succeed. When employers like Reymundo Perez Guzman and Yadira Perez Gamas violate laws for personal gain, they will be held accountable for their actions."
Investigators noted several specific violations of H-2A regulations by the duo:
- Failing to reimburse transportation expenses.
- Shifting visa and border fees onto workers.
- Underpaying nearly $4 per hour below the required wage rate.
- Not recording payment rates or work hours accurately.
- Lacking records for work at non-agricultural facilities.
- Not providing pay stubs.
The division imposed penalties totaling $85,350 on Reymundo Perez Guzman and $81,084 on Yadira Perez Gamas for these violations as well as breaches of the Migrant and Seasonal Agricultural Worker Protection Act.
Moreover, when employees worked outside their contracts at places like landscaping sites or recycling centers, Guzman and Gamas wrongly claimed overtime exemptions resulting in Fair Labor Standards Act violations. Consequently, $73,094 in back wages was recovered for 30 affected workers.
Blaylock commented further: "This case revealed a disturbing disregard for the law and the safety of the workers involved... Making matters worse, they withheld overtime pay these workers earned."
From fiscal year 2022 to 2024, 74 investigations into North Carolina's agricultural sector uncovered violations in 84% of cases. These led to over $1 million in back wages being recovered for nearly 1,300 workers statewide.
In fiscal year 2024 alone, the division conducted outreach events reaching over 3,800 agricultural stakeholders across North Carolina.
The Wage and Hour Division offers compliance resources including an agriculture toolkit available online. They enforce laws without regard to immigration status offering multilingual support via their helpline at 866-4US-WAGE (487-9243). Employees owed back wages can check an online database if previously unlocated.
For more information about compliance or assistance tools like the Timesheet App available on Android/iOS devices visit their website.
