California Farm Labor Contractor Bond

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Bond Penalty: $25,000 to $75,000 based on payroll

Every person engaged in the business farm labor contracting must register with the California Labor Commissioner’s Office and meet specific licensing requirements which include a surety bond. A California farm labor contractor bond is a type of surety bond required by the state regulator from individuals and businesses engaged in farm labor contracting activities. Farm labor contractors are intermediaries who provide agricultural labor services to farms and agricultural businesses. These services can include recruiting, hiring, transporting, and supervising agricultural workers. The purpose of the bond is to financially protect agricultural workers from potential non-payment of wages, violations of labor laws, and other unethical or illegal actions on the part of the farm labor contractor. The surety bond provides a form of insurance that guarantees compensation to workers if the contractor fails to meet their legal obligations. Calculation of the appropriate farm labor contractor bond amount is based on a statutory formula pursuant to Chapter 3. 1684(3)(A), to wit:

  • (i) For payrolls up to five hundred thousand dollars ($500,000), a twenty-five-thousand-dollar ($25,000) bond.
  • (ii) For payrolls of five hundred thousand dollars ($500,000) to two million dollars ($2,000,000), a fifty-thousand-dollar ($50,000) bond.
  • (iii) For payrolls greater than two million dollars ($2,000,000), a seventy-five-thousand-dollar ($75,000) bond.

Per the DIR, the surety bond and licensing requirements apply to any person/legal entity who, for a fee, employs people to perform work connected to the production of farm products to, for, or under the direction of a third person, and any person/legal entity who recruits, supplies, or hires workers on behalf of someone engaged in the production of farm products and, for a fee, provides board, lodging, or transportation for those workers, or supervises, times, checks, counts, weighs, or otherwise directs or measures their work, or disburses wage payments to these persons. Commercial packing house engaged in both the harvesting and the packing of citrus fruit or soft fruit for a client are exempt.

California surety bond leader, Surety One, Inc. is a specialist in the bonding needs of labor contractors. We offer both the surety bonds and fidelity bonds needed by agricultural operators in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at or click here for live chat. A California farm labor contractor bond is quick, easy and delivered in hours.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.