Can H-2 workers be charged a recruitment fee?

One of the most enforcement-aggressive parts of the H-2 program in 2026 is the prohibition on worker-paid recruitment fees. Federal regulations bar any worker from paying a "recruitment fee" — directly or indirectly, to the employer, the employer's agent, the foreign recruiter, or anyone else — as a condition of employment. The 2025 H-2 Modernization Final Rule expanded employer liability and increased civil penalties.

What counts as a prohibited fee

The regulations sweep broadly. Prohibited recruitment fees include:

• Money paid to obtain the job offer
• Money paid for "processing" or "facilitation"
• Money paid for documents, photos, or medical exams charged above actual cost
• Money paid to obtain transportation that benefits the employer
• Money paid for housing arrangements where the employer is the actual beneficiary
• Money paid as a "deposit" or "security" against quitting

Permitted: the worker's actual passport fee paid to the foreign government, and the worker's actual cost of visa stamping at the U.S. consulate (which the employer must reimburse on the next payday under 20 C.F.R. § 655.122(h)).

The employer is liable even for fees the employer did not collect

This is the trap that catches well-meaning employers. The regulations make the employer strictly liable for prohibited recruitment fees charged by foreign recruiters, sub-recruiters, or any agent acting on the employer's behalf, regardless of whether the employer authorized or knew about the fees. The 2025 Modernization Rule extended this further: the employer must affirmatively contract with the foreign recruiter to prohibit fee collection and must disclose the names and addresses of all foreign recruiters in the job order.

Penalties

• Back wages — the employer must reimburse the worker the prohibited fee.
• Civil money penalties under 29 C.F.R. § 501.19 (H-2A) and § 503.19 (H-2B) — up to $15,000+ per violation in 2026 dollars.
• Debarment from the H-2 program for 1–3 years for willful violations.
• Private right of action under the Trafficking Victims Protection Act and state wage-and-hour laws.

The whistleblower-protection layer

Workers who report prohibited fees, housing violations, wage violations, or retaliation get express protection from retaliation under the 2025 H-2 Modernization Rule. Whistleblower retaliation triggers separate penalties on top of the underlying violation.

How we handle this

For employer clients we:

1. Draft and sign written recruitment agreements with the foreign recruiter prohibiting fee collection and identifying the source of recruitment funding.
2. Pre-interview workers through a third-party compliance call before the season to confirm no recruitment fees were paid; document the conversation.
3. Disclose all foreign recruiters in the TLC application as required by the 2025 rule.
4. Reimburse visa stamping fees and any other permitted costs on the first payday and document the reimbursement.

When prohibited fees come to light during a season, the right move is immediate reimbursement to the worker and a corrective disclosure to DOL — both are mitigation factors that often avoid debarment. The recruitment-fee rules are unforgiving, but documented compliance is achievable.