Licensing requirements in California for Farm Labor Contractors include the posting of a surety bond with the Department of Industrial Relations. Farm Labor Contractors typically employ migratory agriculture workers for a fee and may also provide board, lodging or transportation for them. This surety bond guarantees that the contractor will comply with the State Labor Code, as outlined in Section 1684, which includes all payment due to farm laborers. Prior to filing your surety bond, you must pass the farm labor contractor exam. Bond amounts vary depending on previous year’s payroll for existing Farm Labor Contractors. New contractors are required to post a $25,000 surety bond. Below is a breakout of bond amounts per the appropriate payroll:
- $25,000 Bond Amount (Annual Payroll of $500,000 or less)
- $50,000 Bond Amount (Annual Payroll of $500,001 to $2,000,000)
- $75,000 Bond Amount (Annual Payroll above $2,000,000)
Additionally, applicants must participate in at least nine hours of relevant education classes for each license period. A federal registration certificate is also required at the time of application. Corporations/LLCs will need to provide copies of their articles of incorporation statements of information upon submitting their application to the Department of Industrial Relations. A full list of requirement and detailed instructions for obtaining a Farm Labor Contractor License can be found online.
Pacific Surety is proud to offer industry low rates starting at 1% annually for well-qualified applicants and quick turnaround time for your California Farm Labor Contractor Surety Bonds. Feel free to complete our simple application to obtain an approval within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.