Whether you are helping manage the labor needs of a small or large farm in California, you have responsibilities and duties as a farm labor contractor. You need to ensure your employees are working diligently while still being safe, and you need to make sure your employees are paid their wages on time.
To ensure these responsibilities are met, the state of California Department of Industrial Relations requires all California farm labor contractors to hold a California Farm Labor Contractor Bond.
If you are unsure if you need to get licensed and bonded, check out the Rules and Regulations for FLCs.
What is a California Farm Labor Contractor Bond?
As a contractor, you are the principal. Your responsibilities include getting a surety bond and maintaining it. This means following all rules and regulations that the state of California requires you to follow.
If you do not follow the state regulations, or if you do not fulfill your duties as a farm labor contractor, your employees can make a claim against your bond.
If the surety company pays out on a bond claim, you are responsible for repaying them every single penny. This is why it is important to understand your duties and responsibilities under your bond.
How Much Does a Bond Cost?
The state of California has set bond amounts. They are as follows:
- New applicants: $25,000 bond
Renewing applicants’ bond amounts are based on the previous year’s payroll:
- Up to $500,000 payroll: $25,000 bond
- $500,000 – $2 million payroll: $50,000 bond
- Over $2 million payroll: $75,000 bond
You do not need to pay the full bond amount to get bonded.
For example, if you need a $25,000 bond you will not need to pay $25,000. Instead, you will just pay a small portion of this amount.
You will pay anywhere from 1-15% of the total bond amount. So $250 – $3,750.
The best way to see what you’d pay for a California Farm Labor Contractor Bond is to get a free quote:
Getting Licensed as a Farm Labor Contractor
Once you get your bond, you will need to get licensed. The California Department of Industrial Relations has instructions and an application checklist online that you can use to help you get started. Good luck!