California — Farm Labor Contractor Bond
The California Farm Labor Contractor Bond is a mandatory financial security instrument required under California Labor Code Section 1684 for individuals and businesses operating as farm labor contractors. This bond serves as a guarantee that the contractor will comply with state labor regulations and fulfill financial obligations to agricultural workers.
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- Recorded state
- California
- Bond type
- Farm / Foreign Labor Contractor Bond
- Category
- Employment, wages & benefits
What this bond does
This bond ensures that the principal adheres to the terms of Chapter 3, Part 6, Division 2 of the California Labor Code. It provides a mechanism for the payment of damages, unpaid wages, interest on wages, and other monetary relief awarded to agricultural workers due to a contractor's failure to comply with labor laws, including Industrial Welfare Commission orders or misrepresentations made during the licensing process.
- Who needs it
- This bond is intended for individuals, partnerships, limited liability companies, or corporations acting as farm labor contractors within the State of California who must satisfy licensing requirements established by the Department of Industrial Relations.
- Who it protects
- The bond protects the People of the State of California and agricultural workers. It functions as a surety agreement where the principal and the surety company are jointly and severally liable to pay claims up to the penal sum of the bond resulting from the contractor's statutory violations.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
Have these ready
- Determine your annual payroll to verify the required penal sum for your bond amount.
- Ensure your legal entity name and address are consistent with your license application.
- Arrange for authorized officers or partners to sign the bond document before a notary public.
- Obtain the official bond form from the Division of Labor Standards Enforcement and file the executed document with the Labor Commissioner.
Questions about this bond
Who is required to carry this bond?
Any entity acting as a farm labor contractor in California must file this bond to satisfy the requirements of California Labor Code Section 1684(a)(3).
How is the bond amount determined?
The penal sum of the bond is based on the principal's annual payroll for all employees.
Does the bond expire at the end of the license year?
No, the bond is continuous in form and remains in effect for all succeeding license periods unless it is cancelled or terminated according to the Code of Civil Procedure.
What happens if the bond is cancelled?
Cancellation of the bond does not eliminate liability for acts, omissions, or causes that arose while the bond was in effect.