Superior Forestry Service Case ID: 1618392 Superior Forestry Service, Inc. dba: Superior Forestry Service 36462 Highway 27 P.O. Box 25 Tilly, AR 72679-0025 Case File: 2011-297-00273 Case ID: 1618392 Federal Tax ID: 71-0652136 Personnel Manager: Enrique L. Gonzalez 870-496-2442 Employer's Agent: Daniel W. Bremer Agworks, Inc. 498 W. Marion Ave. P.O. Box 580 Lake Park, GA 31636 229-559-6879 H-2B NARRATIVE Reason for Investigation This case action was conducted as 7E The investigation sought to determine the compliance status under the H-2B and MSPA provisions. MODO The main office for Superior Forestry Service, Inc. is located at 36462 Highway 27, Tilly, Arkansas 72679. The MODO is the Dallas District Office. The case was associated as instructed (See D-1-a to D-1-c & D-2-a to D-2-c). Prior History WHISARD reports that the company was investigated by the Richmond DO in:    1999 – failed to provide wage statements under MSPA 2000 – no violations 2005 - no violations Page 1 Superior Forestry Service Case ID: 1618392 Period of Investigation The period of investigation focused on the contract length as listed on the Application for Temporary Employment Certification (TEC) ETA Form 9142 from 03/16/11 to 07/27/11, 12/30/10 to 04/15/11, 10/01/09 to 07/28/10 (C-1-a to C-3-z). COVERAGE Nature of the business Superior Forestry Service, Inc is a farm labor contract employer engaged in reforestation activities such as tree planting, especially pine seedlings, brush clearing, herbicide application, timber stand improvement, and corn detasseling. The company began as a partnership in 1980 and it incorporated in August of 1987 in the State of Arkansas. Since then the company has become the largest commercial forestry contractor in the US with an annual gross revenue of4 . Michael E. Loup serves as President; Michael H. Foley as Vice President; Hayley M. Tester as Treasurer/Secretary; and Enrique Gonzalez as Personnel Manager (D-17-f). During the period of the investigation, the company was certified under 3 separate TECS (C-1-a to C-3-z): 1) ETA Case Number: C-11053-5416 Nature of Temporary Need: Seasonal Case Status: Certified Validity Period: 03/16/2011 to 07/27/2011 Number of openings: 4 Job Title: Forest and Conservation Workers Rate of Pay: 7C, 4 to (optional) 7C, 4 Hours of Work: 40 Overtime: Varies Overtime Rate: 4 Page 2 Superior Forestry Service Case ID: 1618392 Place of Employment Information : Section C 7 of the TEC indicates the area of intended employment to include the following MSA's: Southwest Alabama nonmetropolitan area, Southeast Alabama nonmetropolitan area, Northwest Alabama nonmetropolitan area, Tuscaloosa, AL, Huntsville, AL, Pensacola-Ferry Pass-Brent, FL, Northeast Florida nonmetropolitan area, South Georgia nonmetropolitan area, Columbus, GA-AL, Middle Georgia nonmetropolitan area, East Georgia nonmetropolitan area, Macon, GA, Albany, GA, South Central Kentucky nonmetropolitan area, Cincinnati-Middletown, OH-KY-IN, Northwestern Virginia nonmetropolitan area, Southside Virginia nonmetropolitan area, Virginia Beach-Norfolk-Newport News, VA-NC, Danville, VA, Harrisonburg, VA, Burlington, NC, Hickory-Lenoir-Morganton, NC, Charlotte-Gastonia-Concord, NC-SC, Northeastern North Carolina nonmetropolitan area, Western Central North Carolina nonmetropolitan area, Winston-Salem, NC, Greensboro-High Point, NC, Jacksonville, NC, Greenville, NC, Western North Carolina nonmetropolitan area, Upper Savannah South Carolina nonmetropolitan area, Anderson, SC, Pee Dee South Carolina nonmetropolitan area, Charleston-North Charleston, SC, Florence, SC, Low Country South Carolina nonmetropolitan area, Greenville, SC, Lower Savannah South Carolina nonmetropolitan area, Columbia, SC. 2) ETA Case Number: C-10362-52844 Nature of Temporary Need: Seasonal Case Status: Certified Validity Period: 12/30/2010 to 04/15/2011 Number of openings:4 Job Title: Forest and Conservation Workers Rate of Pay: 4 Hours of Work: 40 Overtime: Varies Place of Employment Information : Section C 7 of the TEC indicates that the areas of intended Page 3 Superior Forestry Service Case ID: 1618392 employment include: Richmond, VA, Southside Virginia nonmetropolitan area, Upper Eastern Shore nonmetropolitan area, Washington-Arlington-Alexandria, DC-VA-MD-WV Metropolitan Division, Virginia Beach-Norfolk-Newport News, VA-NC, Danville, VA, Salisbury, MD. 3) ETA Case Number: C-09175-45325 Nature of Temporary Need: Seasonal Case Status: Certified Validity Period: 10/01/2009 to 07/28/2010 Number of openings: 4 Job Title: Forest and Conservation Workers Rate of Pay: 4 Hours of Work: 40 Overtime: Varies Place of Employment Information : Section C 7 of the TEC indicates that workers will plant tree seedlings and perform forestry services in North and South Carolina, Virginia, Maryland, and Delaware. STATUS OF COMPLIANCE Attestation 1 – Job Opportunity (20 C.F.R. § 655.22(h) The job opportunity is a bona fide, full-time temporary position, the qualifications for which are consistent with the normal and accepted qualifications required by non-H-2B employers in the same or comparable occupations. No violations were charged. Subject employer attested in the Application for Temporary Employment Certification – ETA Form 9142, Appendix B, Section B – 4. that the position being requested is a full-time position. ETA Form 9142 further states in Section B – 5. that the “Period of Intended Employment” is 03/16/11 to 07/27/11, 12/30/10 to 04/15/11, 10/01/09 to 07/28/10; and under Section F – 2. states that the “Number of hours of work per week” will be 40. Page 4 Superior Forestry Service Case ID: 1618392 An analysis of the company's time and payroll records determined that workers regularly worked over 40 hours per week (A-0). During the period of employment 03/16/11 to 07/27/11, 12/30/10 to 04/15/11 10/01/09 to 07/28/10 and the SIP of 7/11/09 to 07/01/11, workers were paid on weekly basis. Employee interviews corroborated that all employees were expected to work overtime as needed (B-1 to B-6). Attestation 2 – Job Opportunity (20 C.F.R. § 655.22(b)) The job opportunity is not vacant because the former occupants are on strike or locked out in the course of a labor dispute involving a work stoppage. No violations were charged. There was no strike/ lockout in effect at Superior Forestry Service. The company did not seek H-2B certification for a specific job opportunity that was vacant because the former occupants were on strike/lockout in the course of a labor dispute involving a work stoppage (C3-z-11). Attestation 3 – Recruitment (20 C.F.R. § 655.22(c)) The job opportunity is open to any qualified U.S. worker regardless of race, color, national origin, age, sex, religion, handicap, or citizenship, and the employer has conducted the required recruitment, in accordance with regulations, and has been unsuccessful in locating sufficient numbers of qualified U.S. applicants for the job opportunity for which certification is sought. Any U.S. workers who applied or apply for the job were or will be rejected only for lawful, job related reasons, and the employer must retain records of all rejections. No violations were charged. Subject employer attested in the Application for Temporary Employment Certification – ETA Form 9142, Appendix B, Section H – 1. that the name of State Workforce Agency (SWA) serving the area of intended employment is The Employment Security Commission of North Carolina and The Virginia Employment Commission; that the start and the end date for the SWA job order # 10003132 was 01/24/11 to 02/03/11; # 187869 was 11/18/10 to 11/28/10; and # NC 6525869 was 06/08/09 to 06/18/09; and that the name of the Newspaper/Publication where the classified adds appeared included: The Suffolk News Herald, The Daily Reflector, The Union Daily Times, The Madison County Carrier, The Clinch County News, The Crittenden Press, The West Alabama Classifieds, The Richmond Times-Dispatch, The Star Democrat, The Morning Star, The Bedford Bulletin, The Aiken Standard, and The Fayetteville Observer (D-11-b to D-11-q). The company provided copies of SWA job listings showing the appropriate PWR indicated on ETA Page 5 Superior Forestry Service Case ID: 1618392 Form 9141, including the job duration, and the number of hours of work per week (D-7-b to D-7-z-76). A “recruitment results log” was also provided, wherein the company documents all the applicant contacts and whether or not the applicant was hired. Records of all rejections, and the reason as to why applicants were not hired was also provided (D-8-b to D-9-z-15). An analysis of the company's records indicated that multiple referrals were made by the corresponding SWA in response to the various job orders. WHI attempted to contact several American workers who submitted an application, were offered a job, accepted or turned down the offer. The interviews taken disclosed no violations. It became apparent that these prospective employees turned down the offer once they learned that they would have to spend an extended time away from home, were expected to pay for food, lodging, and transportation to the job sites (B-2, B-4, B-5, B-6). Attestation 4 – Job Opportunity (20 C.F.R. § 655.22(a)) Offer terms and working conditions normal to U.S. workers similarly employed in the area of intended employment and are not less favorable than those offered to H-2B workers. No violations were charged. The investigation did not disclose that the working conditions of US workers and H-2B workers were disparate. Everyone was paid on a weekly basis. Payroll records indicated that OT hours were worked regularly by all workers (A-0, B-1, B-3). Attestation 5 – Required/Offered Wages (20 C.F.R. § 655.22(e)) Offer a wage that equals or exceeds the highest of the prevailing wage, the applicable Federal, State or local minimum wage and pay the offered wage during the entire period of the approved Labor Certification. Employer attested in the Application for Temporary Employment Certification, ETA Form 9142, Section G – 1., that the basic rate of pay offered on job order # 10003132 would be from $ 7.35 to $10.38 per hour; $10.02 on job order #187869; and $12.61 on job order # NC 6525869 (C-1-a to C-3-z). This attestation states that employer must offer a wage that equals or exceeds the highest prevailing wage, the applicable Federal, State or local minimum wage. The investigation disclosed that the employer paid a piece rate of 4 per 1000 seedlings planted correctly or the hourly wage in the area of intended employment, whichever was higher (A-0, C-1-a to C-3-h). Page 6 Superior Forestry Service Case ID: 1618392 Attestation 6 – Job Opportunity (20 C.F.R. § 655.22(a)) The offered wage is not based on commissions, bonuses or other incentives, unless the employer guarantees a wage paid on a weekly, biweekly, or monthly basis that equals or exceeds the prevailing wage, or the legal Federal or State minimum wage, which ever is highest. No violations were charged. The offered wage was not based on commissions or bonuses. However, workers were offered a piece rate incentive, which exceeded the prevailing wage, the legal Federal or State minimum wage (A-0, B-1, B-3, C-1-a to C-3-h). Attestation 7 – Compliance with Other Applicable Laws (20 C.F.R. § 655.22(h)) During the period of employment that is the subject of the TEC, the employer will comply with applicable Federal, State, and local employment-related laws and regulations, including employment-related health and safety laws . No violations were charged. Superior Forestry Service is in compliance with applicable Federal, State, and local employment-related laws and regulations, including employment-related health and safety laws. Moreover, workers were paid T1/2 the piece rate or the basic rate when they worked over 40 hrs/wk (A-0, B-1, B-3, C-3-z-10). Attestation 8 – Displacement / Layoff (20 C.F.R. § 655.22(i)) The employer has not laid off and will not lay off any similarly employed U.S. worker in the occupation that is the subject of the Application for Temporary Employment Certification in the area of intended employment within the period beginning 120 days before the date of need, except where the employer also attests that it offered the job opportunity that is the subject of the application to those laid off U.S. workers and the U.S. workers either refused the job opportunity or was rejected for the job opportunity for lawful, job related reasons . No violations were charged. Subject employer attested in the Application for Temporary Employment Certification, ETA Form 9142, Section B – 8, that it has not laid off and will not lay off U.S. workers within the period beginning 120 days before the date of need of the H-2B workers. Superior Forestry Service did no lay off any worker within 120 calendar days before the date of need of 03/16/11, 11/18/10, and 10/01/09 (D-10-b to D-10-d). Page 7 Superior Forestry Service Case ID: 1618392 Attestation 9 – Kickbacks Contractor/Recruiter/Attorney/ Agent (20 C.F.R. § 655.22(g)(2) & (j)) The employer and its agents and/or attorneys have not sought or received payment of any kind from the employee for any activity related to obtaining labor certification, including payment of the employer's attorneys' fees, application fees, or recruitment costs. Payment includes, but is not limited to, monetary payments, wage concessions (including deductions from wages, salary, or benefits), kickbacks, bribes, tributes, in kind payments, and free labor. No violations were charged. Superior Forestry Service engages Daniel Bremer of AgWorks as an agent to procure its H-2B workers from Mexico. Bremer files the TEC annually on behalf of the company without seeking or receiving payment of any kind from the workers for an activity related to obtaining the labor certification (C-1-c, C-2-c, C-3-c). Attestation 10 – Separation of Employment Notification (20 C.F.R. § 655.22(m)) Unless the H-2B worker is being sponsored by another subsequent employer, the employer will inform H-2B workers of the requirement that they leave the U.S. at the end of the period certified by the Department or separation from the employer whichever is earlier, as required under 20 C.F.R. § 655.35, and that if dismissed by the employer prior to the end of the period, the employer is liable for return transportation. No violations were charged. Superior Forestry Service informed its H-2B workers verbally of the requirement that they leave the U.S. at the end of the authorized period of stay provided by USCIS or separation from the employer (B-1, B-3). There were no H-2B worker employed by Superior Forestry Service that were dismissed before the end of the authorized period of employment. Therefore the employer was not is liable for the return transportation of the worker. Attestation 11 – Separation of Employment Notification (20 C.F.R. § 655.22(f)) Upon the separation from employment of any foreign workers employed under the labor certification application, if such separation occurs prior to the end date of the employment specified in the application, the employer will notify the Department and DHS/USCIS in writing or any other method specified of the separation from employment not later than two workdays after such separation is discovered by the employer. Page 8 Superior Forestry Service Case ID: 1618392 No violations were charged. The H-2B workers employed by Superior Forestry Service worked for the entire length of the certified period of employment. There was no H-2B employment separation occurring prior to the end date of employment specified in the TEC, therefore there was no obligation for Superior Forestry Service to notify ETA and USCIS in writing. However, the employer documented the separation of domestic workers and notified the respective SWA and USCIS within 2 workdays of discovering the separation (D-16-b to D-16-z-9). Attestation 12 – Area of Intended Employment (20 C.F.R. § 655.22(l)) The employer will not place any H-2B workers employed pursuant to this application outside the area of intended employment listed on the Application for Temporary Employment Certification unless the employer has obtained a new temporary labor certification from the Department . No violations were charged. Subject employer attested in the Application for Temporary Employment Certification, ETA Form 9142, in Section F – c. 1. - that the worksite address will be “Multiple worksites within Virginia and various states. Subject employer's TEC also states in Section F – c. 7. - that work will be performed in multiple worksites within an intended area of employment (B-1, B-3, C-1-d, C-2-d, C-3-d). The investigation did not find out the H-2B workers were instructed to work outside the locations identified on the TEC. Attestation 13 – Temporary Need (20 C.F.R. § 655.22(h)) The dates of temporary need, reasons for temporary need, and number of worker positions being requested for certification have been truly and accurately stated on the application. No violations were charged. The employer adhered to the terms stated on the TEC. Despite the great number of workers and worksites, the investigation did not disclose that workers worked outside the “Period of Intended Employment” or were misinformed of the contract stipulations (B-1, B-3). Attestation 14 – Secondary / Other Employer Inquiry (20 C.F.R. § 655.22(k)) The employer (job contractor) will not place any H-2B workers employed pursuant to the Application for Temporary Certification with any other employer or at another employer's worksite unless a bona fide Page 9 Superior Forestry Service Case ID: 1618392 inquiry as to whether the other employer has displaced or intends to displace a similarly employed U.S. worker within the area of intended employment with the period beginning 120 days before and 120 days after the date of need, the other employer provides written confirmation that it has not so displaced and does not intend to displace such U.S. worker; and all worksites are listed on the certified Application for Temporary Employment Certification. No violations were charged. Superior Forestry Service is not a job contractor and it did not place any H-2B worker with any other employer or at another employer's worksite during the certified period of employment. DISPOSITION Given the fact that forestry workers move from one location to the next almost on a daily basis, WHI 7C contacted the company's agent, Daniel Bremer, before the start of the investigation in order to learn when the H-2B workers would be in Virginia in July 2011. He was informed that 2 crews would be working in the Farmville area until the 3 rd week in July. WHIs 7C and 7C traveled to the Farmville Motel, located at 1911 West 3rd St., Farmville, Virginia on July 15, 2011. They met crew 30, which was supervised by 7C . They proceeded to interview several workers, inspect the vehicles they used to transport themselves to the work site, and inspected the room they rented at the motel. Afterwards, all the contact was made through Bremer. He provided all the documentation requested, albeit with some delays. He was very helpful and cooperative throughout the investigation. On 11/23/11, WHI 7C spoke to him via telephone and informed him that the H-2B investigation disclosed no violations. However, he was informed that WHI 7C , as the lead investigator, would contact him to discuss the MSPA findings. He thanked WHI 7C for her patience in obtaining all the requested records, and informed her that his employer, Superior Forestry Service has been audited/investigated several times by ETA and WHD and no violations have been found. He attributes that to the fact that despite the large number of H-2B and US workers that the company hires annually, as the agent, he makes sure that all applicable laws are “followed to a T”. Publications Provided H-2B Regulations - 20 CFR, Part 655 Page 10 Superior Forestry Service Case ID: 1618392 Recommendation File is being submitted for management review. 7C Wage Hour Investigators Employer: Superior Forestry Service, Inc., dba Superior Forestry Service POB 25 Tilly, AR Enrique Gonzalez, Personnel Mgr 7C Employer's Agent: Daniel W. Bremer Agworks, Inc. 498 W. Marion Avenue POB 580 Lake Park, GA 7C MSPA NARRATIVE COVERAGE The subject firm is engaged in providing a variety of forestry related services to customers all across the USA, such as tree planting, brush clearing, timber stand improvement activities and herbicide application. The subject is currently employing forestry workers on H2B TEC #C-11053-5416 in various locations within the state of VA for the period of time 3/16/11 to 7/27/11. This was the Apolinar crew (Apolinar is the crew leader). These employees are engaged in applying herbicide on forest lands under said contract. Page 11 Superior Forestry Service Case ID: 1618392 Forestry workers engaged in such activities as mentioned above are subject to MSPA vis the Bresgal Decision. The subject firm is engaged in the named activities of hiring, employing and transporting migrant workers subject to MSPA, and employed under the H2B provisions. EXEMPTIONS Sec 4(a)(1) Family Business Exemption is not applicable to the subject employer. Sec 4(a)(2) Small Business Exemption is not applicable to the subject firm as it has utilized more than 500 man days of labor in the previous four calendar quarters. Sec 4(a)(3) This exemption does not apply as the subject engaged in the named activities for more than 13 weeks and in more than a 25 mile radius from its home office. STATUS OF COMPLIANCE This investigation was initiated as 7E The WHIs were able to locate the crew of workers at their temporary quarters in Farmville VA on 7/15/11 where they were quartered while engaged in herbicide application on forested property in Mecklenburg County for the period of time 7/11/11 to7/17/11. According to documents provided by the agent, this crew was designated as Crew #30 (see EX A-0). At that time, vehicle inspections were made and interviews were conducted and what records were available were examined on the spot. The MODO [Speer, Dallas] had indicated in the MODO instructions that 2 items were of particular interest:  Disclosure of the transportation fee to the workers.  Whether or not the vehicle used to transport the workers was also towing a trailer loaded with “Portable toilets”. Page 12 Superior Forestry Service Case ID: 1618392 As to the first issue, it was determined through EE interviews that the charge of $30/week was indeed disclosed as a condition of employment to the workers, and they stated as much in their interviews (see EX B, #1-6). In regards to the second issue, this writer made the vehicle safety inspections accompanied by the crew leader,7C . At this time it should be noted for the record that the vehicles and trailers were not attached at the time they were inspected. One vehicle was a 12 passenger van, which was used to transport workers; and the other vehicle was the crew leader's POV, a extra-cab pickup truck in which he indicated that one worker rode with him. The vehicle had a seating capacity of five, but only the crew leader and one other passenger rode in the vehicle. When this writer asked the crew leader which vehicle pulled the trailer with the “porta-johns”, he indicated with his hand that the 15 passenger van did, but again this vehicle and this trailer, even though lined up as if they had been attached at one time, were not attached at the time of the safety inspection. This fact [was not/was] verified by interview statement. This writer conducted vehicle safety inspections of both vehicles under DOT standards as contained in CFR 29 500.105, since these vehicles were being utilized to transport workers across state lines and on trips of more than 75 miles. Both vehicles were found to be in compliance with said DOT vehicle safety standards, and after some discussion with DD Clark and SE Ag Coordinator7C (substituting for NE Ag Coordinator 7C ) of how these vehicles were subject to said part 500.105, it was finally determined that since both vehicles met the DOT safety standards, there was no violation charged just because they were both utilized to tow trailers while transporting MSPA covered workers. Housing Safety inspection: At the time of the investigation, the workers were being domiciled at a commercial establishment, the Farmville Motel located at the following address: Farmville Motel 103 Main Street Page 13 Superior Forestry Service Case ID: 1618392 Farmville, VA 23901 434-392-9035 Owner: Satya Narayan Purnma Corporation POB 946 Amherst, VA 24521 This establishment was concurrently renting rooms to the workers and to the public at large at the time of the investigative visit. It operates on a year-round basis, and some occupants are employed by non-agricultural employers, and were concurrently occupying rooms at the establishment at the same time as Superior Crew #10. The establishment charged the Superior Crew the same weekly rates for double-bed rooms as charged to the public, namely $185/week. The Innkeeper exemption under MSPA Section 203 is granted to Satya Narayan based on the investigation findings of the above mentioned facts. The rooms in which the workers were domiciled were inspected under OSHA safety standards (constructed or significantly remodeled after 4/3/80) and no violations of S&H standards were charged. DISPOSITION Based upon the tenor of the comments made by MODO 7C in his original MODO instructions, this writer was under the impression that the vehicles used to transport MSPA covered workers in this case were not to be utilized to tow trailers loaded with either Porta-johns or tools & equipment. This misconception belongs to this writer alone, and is due to both inexperience in dealing with H2B reforestation investigations, and also the MODO emphasis on the vehicles & trailers which was not qualified by introduction of safe operation under DOT safety standards. Once the H2B portion of the narrative was compete, this writer attempted to contact MODO7C on 12/19/11 in order to clarify his concerns regarding the matter of the vehicles towing the trailers while transporting workers, in order to solve any unresolved potential MSPA violations for this practice. In his original MODO instructions (see EX D-1) he did not mention the reason for his concern, (which Page 14 Superior Forestry Service Case ID: 1618392 hinged upon whether or not such vehicles would pass DOT safety standards when inspected). At this time this writer discovered that7C was no longer the MODO, and had been replaced by 7C 7C in the Dallas DO. This writer discussed the investigation findings with 7C , who suggested that he consult with DD 7C Clark and the regional agricultural coordinator in order to determine if any violations would be charged. She also mentioned that if a violation were charged in any H2B reforestation(sic) case, then a JRC must be held with the SOL, but she did not mentioned which one: either Arlington or the SW region SOL. This writer discussed these developments with DD Clark on 1/3/12 and it was decided to petition7C for his opinion, and this writer wrote the memorandum which is enclosed at EX D-2. In the interim, 7C was absent from duty due to health related matters, and SE Region Ag coordinator 7C replied in his stead; his reply is enclosed at EX D-3. The critical matter at hand regarding the issue of the vehicles towing trailers whilst transporting MSPA covered workers came down to two matters of fact: Had the pickup truck used to transport workers been modified from its original factory delivered configuration by the addition of a “cap” fitted to the bed and outfitted to transport workers? (It had not;) and Did the vehicle used to transport workers pass inspection under DOT safety standards? (They did.) These two facts render all other questions/considerations moot in the matter of these vehicles towing trailers while being used to transport MSPA covered workers. Since the vehicles in question passed the DOT safety standards inspection, no violations are charged to the subject firm for transportation related matters. No other violations of MSPA charged to the employer. A telephone final conference was held with the grower's agent, Daniel Bremer on 1/23/11. Coverage and exemptions under MSPA had all been previously discussed, and the investigation findings were also discussed briefly. He agreed to future compliance on behalf of the AGER. RECOMMENDATIONS Page 15 Superior Forestry Service Case ID: 1618392 Recommend that the file be closed at the DO w/o further action. WHI 7C For WHI 7C 1/24/12 e Page 16