Plain English Breakdown
The official text distinguishes between 'gross receipts from operations' and general business income, which is an important distinction for the bond calculation.
AB-2227: New Rules for Farm Labor Contractor Bonds
This law changes how much money farm labor contractors must set aside as a safety fund based on their total business income and adds rules requiring the Labor Commissioner to make decisions if contractors do not answer worker complaints.
What This Bill Does
- Changes the rule so bond amounts are based on annual gross receipts from operations instead of just employee payrolls.
- Doubles the required bond amount for farm labor contractors who are not registered as foreign labor contractors.
- Sets new minimum bonds at $50,000, $100,000, or $150,000 depending on gross receipts for non-foreign labor contractors.
- Maintains the existing bond amounts ($25,000, $50,000, and $75,000) based on annual gross receipts ranges for foreign labor contractors.
- Requires the Labor Commissioner to ask for proof of total gross receipts before issuing a license.
- Adds bond details to the public farm labor contractor license database so anyone can see them online.
- Orders the Labor Commissioner to issue an order, decision, or award if a grower or contractor fails to appear or answer within the allowed time after a complaint is filed.
Who It Names or Affects
- Farm labor contractors who hire workers for farms
- Foreign labor contractors registered in California
- The Labor Commissioner's office that issues licenses and handles complaints
Terms To Know
- Surety bond
- A deposit of money held by the Labor Commissioner to pay for interest on wages, damages from violating orders, or other monetary relief awarded to agricultural workers.
- Gross receipts
- The total amount of money a business brings in from its operations as a farm labor contractor before costs are subtracted.
- Foreign labor contractor
- A person or company registered to recruit workers who live outside the United States to come and work on farms.
Limits and Unknowns
- The official text does not state when this law will officially start.
- It is unclear if these new rules apply to complaints filed before the law takes effect.
- The bill specifies that orders can be appealed but does not detail the specific appeal process.