Addressing Labor Needs: SESO Labor's $4.5 Million Funding

While the Biden administration pursues comprehensive immigration reform legislation, a California-based startup, SESO Labor, is tackling the issue from a different angle. They have successfully secured $4.5 million in funding to facilitate access to legal migrant labor for farms across the country.

SESO Labor's Founding and Investment

Mike Guirguis, the founder of SESO, completed a funding round during the summer months. Investors included prominent firms like Founders Fund and NFX.

Notably, Pete Flint, who previously founded Trulia, has joined SESO’s board of directors. The company currently collaborates with 12 farms and is actively negotiating agreements with an additional 46.

Jordan Taylor, SESO’s co-founder, brings valuable experience to the team. He was the initial product hire at Farmer’s Business Network and formerly worked at Dropbox.

Streamlining the H-2A Visa Process

SESO operates within the established legal framework for migrant worker programs, specifically the regulations in place since 1986. Their core service focuses on simplifying and managing the often-complex process of obtaining H-2A visas.

These visas permit agricultural workers to legally reside and work in the United States on a temporary basis, ensuring they receive appropriate protections.

Automation and Future Revenue Streams

Currently, SESO is focused on automating the visa application process. This includes preparing necessary documentation for workers and ensuring a smoother overall application experience.

The company’s current fee is approximately $1,000 per worker. However, Mike Guirguis anticipates diversifying revenue streams as SESO expands its services to directly benefit workers as well.

The long-term vision involves providing a fully integrated suite of services for both farm owners and the agricultural workforce.

Market Position and Growth Projections

SESO anticipates facilitating the placement of 1,000 workers throughout 2021. As of now, the company is operating pre-revenue.

The leading competitor in the worker visa space currently handles around 6,000 workers annually. Therefore, SESO’s primary focus is on capturing a significant share of the market, according to Guirguis.

A Complex Narrative: Immigration and Farm Labor in the United States

The H-2A program facilitates the temporary or seasonal employment of non-immigrant foreign workers on U.S. farms when domestic labor shortages are anticipated by agricultural employers. These workers are entitled to the same protections as U.S. employees, including adherence to wage laws, workers’ compensation, and healthcare access through the Affordable Care Act.

Employers utilizing the H-2A visa program are obligated to cover workers’ travel expenses, both to and from the U.S. They must also provide either free housing or affordable rental options, alongside meal provisions. Costs associated with housing and meals can be legally deducted from employee wages.

Historical Context of the H-2A Visa

Initially established in 1952 with the passage of the Immigration and Nationality Act, H-2 visas emerged alongside a national origins quota system. This system largely favored immigration from Northern Europe, but simultaneously broadened access for immigrants from Asia – a first since the initial codification of immigration laws in 1924.

Further liberalization of immigration regulations occurred in the 1960s. However, the most recent significant immigration reform, enacted in 1986, introduced stricter controls. It specifically outlawed the employment of undocumented workers, creating the H-2A visa as a legal pathway for farms to secure migrant labor while avoiding penalties.

The H-2A Visa as an Opportunity

According to Guirguis, a Stanford graduate whose thesis focused on labor policy, the H-2A visa can be a significant opportunity for many migrant workers.

Guirguis articulates the company’s long-term vision: “Our aim is to deliver a staffing solution for farms and agribusiness, functioning as the ‘Gusto’ of the agricultural sector, and expanding our services to offer farms a complete human resources solution.” He draws a parallel to the payroll provider, Gusto.

As Guirguis points out, a substantial portion of the agricultural workforce is undocumented. “These individuals have often been vulnerable to exploitation, and the H-2A visa offers a means of legal employment. We assist employers in maintaining their workforce and are developing software to support farm operations.”

• The H-2A program addresses labor shortages in agriculture.
• Employers are legally required to provide specific benefits to H-2A workers.
• The visa program’s history is intertwined with broader shifts in U.S. immigration policy.

The H-2A visa represents a structured, legal alternative for agricultural employers seeking seasonal labor, while also offering opportunities for foreign workers.

Addressing Labor Shortages in Agriculture Despite Border Restrictions

Agricultural operations are currently facing significant labor demands, as indicated by recent data concerning workforce deficiencies. However, a report published by Reuters suggests that the primary issue isn't necessarily a limitation in the availability of H-2A visas.

Specifically, the quantity of H-2A visas issued for agricultural machinery operators experienced a substantial increase, rising to 10,798 between October and March. This represents a 49% surge compared to the figures recorded during the same period in the preceding year, according to data released by the U.S. Department of Labor and reported by Reuters.

Challenges Beyond Visa Availability

The core obstacle isn't the procurement of H-2A visas themselves, but rather the difficulties encountered by prospective workers in traveling to the United States. Intensified border security measures, the ongoing global pandemic, and associated travel restrictions have collectively contributed to preventing migrant laborers from reaching their intended destinations.

Despite these challenges, it is believed that increased adoption of the H-2A visa program, facilitated by improved resources, could reduce undocumented immigration and expand the pool of available workers for physically demanding farm jobs that often lack interest from domestic applicants.

David Misener, proprietor of Green Acres Enterprises, a harvesting firm located in Oklahoma, has personally experienced the difficulty of finding adequate replacements for his customary migrant workforce.

Misener conveyed to Reuters that the American workers he attempted to recruit were unable to adapt to the demands of the work. “They could not fathom doing it and making it work,” he stated.

The Appeal of H-2A Visas

According to Guirguis, migrant workers participating in the H-2A program can earn significantly more than they would in their home countries. “With H-2A, migrant workers make 10 times more than they would get paid at home,” Guirguis explained. “They’re taking home the equivalent of $40 an hour. The H-2A is coveted.”

Guirguis posits that by offering appropriate incentives and streamlining the application and approval procedures for farmers, the utilization of H-2A visas could expand to encompass 30% to 50% of the national agricultural workforce. This expansion would potentially generate between 300,000 and 1.5 million job opportunities for migrants, granting them similar legal protections to those enjoyed by citizens during their visa tenure.

• Increased H-2A visa approvals demonstrate program accessibility.
• Travel restrictions remain a key impediment to workforce availability.
• Streamlining the process could significantly boost program participation.

Enhancing Protections for Agricultural Workers via Streamlined Documentation

The impetus behind addressing challenges within the farm labor sector originated from the founder’s personal experience assisting a relative in establishing her agricultural business. Regularly dedicating weekends to help with farm operations, he learned firsthand about the difficulties faced by his cousin’s husband upon arriving in the U.S. as an undocumented worker.

Utilizing this program allows employers to mitigate the risks associated with employing individuals without legal work authorization, a concern amplified by increased enforcement during the previous administration.

However, the program’s historical context is undeniably linked to less equitable periods in U.S. immigration history. Certain advocates for immigrant rights contend that the H-2A system shares similar systemic flaws with the H-1B visa program designed for technology professionals.

“The H-2A visa facilitates the temporary employment of foreign workers in the agricultural industry… It represents a component of an outdated immigration framework requiring comprehensive reform. The 11.5 million undocumented individuals currently residing here should be granted a pathway to citizenship,” stated Saket Soni, founder of Resilience Force, an organization dedicated to supporting immigrant workers. “Furthermore, any foreign workers deemed necessary should have the opportunity to remain… H-2A visa holders lack a route to permanent residency. Workers often hesitate to report labor violations due to fear of job loss. While the H-2A visa can be beneficial, it is also susceptible to exploitation.”

Soni emphasized that the precarious nature of a worker’s legal status – and their reliance on a single employer for continued authorization to remain in the country – discourages them from voicing concerns about workplace issues, as termination could lead to deportation.

“Our core belief is that if someone’s labor is needed, they should be treated with dignity and respect,” Soni explained. “When labor shortages arise, individuals should be permitted to stay… H-2A represents a relic of past immigration policies.”

Guirguis holds a differing viewpoint, asserting that a platform such as SESO’s will ultimately improve convenience and service quality for workers entering the country under these visas.

“Our objective is to increase the financial resources available to these workers,” he stated. “We are developing remittance and banking services. All our efforts should yield mutual benefits for both the employer and the worker seeking participation in this program, ensuring they are not subjected to unfair practices.”