Surety Bond Encyclopedia

Farm Labor Contractor Bond - Statewide in California

Brief Summary

The amount is not fixed. Labor Code 1684 sets it by the contractor's annual payroll for all employees, from $25,000 up to $75,000, and a contractor whose payroll has grown needs to move up a tier. A large judgment can also trigger a second bond within 60 days. Get the tier right before the license or renewal goes in.

California will not issue or renew a farm labor contractor license until the contractor deposits a surety bond with the Labor Commissioner under Labor Code 1684. The bond is $25,000 for payrolls up to $500,000, $50,000 for payrolls of $500,000 to $2,000,000, and $75,000 for payrolls over $2,000,000. It is payable to the people of the State of California and backs payment of wages and damages caused by violations of the chapter.

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How to Apply for a Farm Labor Contractor Bond:

Total your annual payroll for all employees and pick the bond tier that matches it.
Register as a farm labor contractor with the federal government and hold the federal registration certificate.
Pass the Labor Commissioner's farm labor contractor exam.
Obtain the bond and have it deposited with the Labor Commissioner.
Apply online through the DIR registration portal with the $500 license fee and $10 filing fee.
Start the renewal as soon as the portal opens, 90 days before the license expires, and confirm the bond tier still matches payroll.

Detailed Information About the California Farm Labor Contractor Bond:

Bond tiers by payroll

Labor Code 1684 ties the bond to the size of the contractor's annual payroll for all employees.

Payroll up to $500,000: $25,000 bond
Payroll of $500,000 to $2,000,000: $50,000 bond
Payroll over $2,000,000: $75,000 bond

If a final judgment against the contractor in any year equals or exceeds the required bond amount, the contractor must deposit an additional bond within 60 days.

What the bond answers for

The bond is deposited with the Labor Commissioner and payable to the people of the State of California. It is conditioned on compliance with the farm labor contractor law and on payment of damages caused by a failure to comply or by a violation of the chapter, including unpaid wages and interest and violations of wage orders.

Who is a farm labor contractor

Under Labor Code 1682, a farm labor contractor is a person who, for a fee, employs workers to perform services in producing farm products for a third person, or recruits, solicits, supplies or hires workers for a grower, and for a fee also furnishes board, lodging or transportation, supervises or measures the work, or pays the wages. Section 1682.5 excludes a nonprofit organization providing those services for its members, and a person acting only within the scope of employment by the grower rather than as an independent contractor. Section 1682.4 excludes a commercial packing house that both harvests and packs citrus or soft fruit for a client.

The rest of the license

The bond is one condition among several. Section 1684 also calls for a $500 license fee plus a $10 filing fee, a written exam on farm labor contractor law, federal registration under the Migrant and Seasonal Agricultural Worker Protection Act, and annual sexual harassment prevention training for supervisors. The Labor Commissioner's checklist adds workers' compensation coverage, Live Scan fingerprints, nine hours of education each license period, and the exam once every two years. Renewal applications open online 90 days before the license expires.

Eligibility and Requirements for a California Farm Labor Contractor Bond:

Bond of $25,000, $50,000 or $75,000 depending on annual payroll, under Labor Code 1684.
Bond payable to the people of the State of California and deposited with the Labor Commissioner.
Additional bond within 60 days if a final judgment in any year equals or exceeds the bond amount.
Workers' compensation insurance and Live Scan fingerprints for the license file.
Nine hours of relevant education each license period and the exam once every two years.

California Farm Labor Contractor Bond FAQs:

Which bond amount do I need?

It depends on annual payroll for all employees. Up to $500,000 needs $25,000. From $500,000 to $2,000,000 needs $50,000. Over $2,000,000 needs $75,000.

Can a judgment change my bond?

Yes. If a final judgment against you in any year equals or exceeds the required bond amount, Labor Code 1684 requires an additional bond within 60 days.

I supervise crews only for the grower who employs me. Do I need a license and bond?

Labor Code 1682.5 says the chapter does not apply to a person who performs these services only within the scope of employment by the grower and not as an independent contractor.

Does my federal farm labor contractor registration replace the state bond?

No. Federal registration is one of the conditions for the California license. The state bond is a separate condition under the same section.

When can I renew?

The Labor Commissioner's renewal link opens 90 days before the license expiration date. Recheck your payroll tier when you renew.