Link to original article 

February 17, 2025

By Mateusz Perkowski, Capital Press

SALEM — Farmers wouldn’t pay unemployment taxes for foreign guestworkers under a bill meant to bring Oregon into line with several other labor-dependent specialty crop states.  

Because they reside in the U.S. solely for the duration of their contracts, H-2A guestworkers are largely ineligible for unemployment insurance, yet their employers must still contribute to the program in Oregon.  

Supporters of House Bill 3142 argue that Oregon should exempt H-2A employers from the unemployment tax, as Washington, Maine, and New York have already done.   

“We believe this would level the playing field in a state that is increasingly adding costs and regulations to farm employers,” said Jenny Dresler, lobbyist for the Oregon Farm Bureau, during a recent legislative hearing before the House Labor Committee.  

Citing USDA data, Dresler said that labor costs are 70% higher for farmers in Oregon compared to the rest of the U.S. on average, so HB 3142 represents a modest way of bringing those expenses down.  

It’s unlikely the bill will spur farmers to hire H-2A workers instead of recruiting local residents, considering the program requires paying wages of at least $19.82 per hour, in addition to providing housing and transportation, she said.   

Despite those expenses, farmers have been relying more on H-2A because they’re unable to hire enough local workers to help with harvest and other key jobs, Dresler said. A decade ago, only about 40 farmers in Oregon used the H-2A program, but that’s now risen to several hundred growers.  

“It provides certainty that you will be able to get your crop out of the ground or off the tree while it’s still marketable,” Dresler said.  

If the bill passes, it would reduce unemployment tax revenues by $2.2 million in the current biennium and $2.7 million in the next, said Lindsi Leahy, unemployment division director for the Oregon Employment Department.   

It’s theoretically possible for H-2A workers to collect unemployment payments if they’re temporarily laid off while still technically “attached” to an employer, she said. However, Leahy said she isn’t familiar with any cases where that’s actually happened.  

The H-2A program has built-in protections for workers, so if there’s a lull in work hours, employers are required to make those up before the end of the contract period, said Roxana Macias, chief people and community officer for Wafla, an organization that helps growers use the program.  

Farmers use the H-2A program to meet labor needs during the busiest times of the year, so any lull would be short in duration, Macias said. “The possibility of a worker being laid off during peak season is pretty slim.”  

Opponents argue the bill is “deeply flawed,” as it would effectively reward farmers for hiring foreign workers rather than local residents.  

“Exempting employers from paying unemployment taxes for H-2A workers will incentivize the use of temporary foreign labor at the expense of domestic agricultural workers and undermine the fairness of our unemployment system,” said Martha Sonato, state legislative and policy advocate for the Oregon Law Center, a nonprofit that advocates for low-income communities.  

The unemployment insurance tax is meant to collectively raise funds for the state’s workforce and should be equally supported by all employers, according to the bill’s opponents.  

“This bill will further exploit vulnerable workers and penalize local employers who do right by their employees,” said Mike Powers, president of the Service Employees International Union’s local 503 branch.  

Critics also faulted HB 3142 for building upon the H-2A system, which they characterized as being prone to “systemic issues,” such as substandard housing and worker mistreatment.  

“This dependence on a single employer creates a vulnerable workforce  and opportunities for exploitation including labor trafficking,” said Ira Cuello-Martinez, policy advocacy director at PCUN, a nonprofit representing farmworkers.  

Though the H-2A program theoretically requires farmers to prove they face labor shortages, in practice employers discourage local residents from applying for jobs by setting unrealistic productivity standards or inconvenient times for interviews, critics said.  

“This requirement is poorly enforced. As a result, some employers prioritize hiring H-2A workers over local workers,” Powers said.