The California Farm Labor Contractor Bond is a type of surety bond required by the State of California Department of Industrial Relations. The bond amount varies (see below) and the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.
How to Get a California Farm Labor Contractor Bond
Surety1.com makes it easy to obtain this surety bond. Our simple , three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the California Farm Labor Contractor Bond will be delivered to you via USPS priority mail (overnight shipping is available). The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. The company maintains an A+ rating from the Better Business Bureau.
Obtaining the surety bond is just one of the license requirements. We suggest that you fulfill the other requirements (see list below) prior to applying for the surety bond.
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What size bond do I need?
The bond amount varies depending on the amount of payroll because the state wants to be sure that it has enough money to cover any claims that may be made against the bond. The surety bond requirement is:
- Annual Payroll up to $500,000, $25,000 surety bond payroll.
- Annual Payroll of $500,001 to $2,000,000, surety bond amount is $50,000
- Annual Payroll in excess of $2,000,000, the bond amount is $75,000.
- For new contractors, the bond amount is $25,000.
What does the Bond do?
The bonds guarantee payment of all sums due to farm laborers. The bond also guarantees farm labor contractors comply with the with labor code. Payment of all damages to any person for failure to comply is guaranteed by the bond. A farm labor contractor in California is defined as:
- Any person or legal entity that employs people to perform work connected to the production of farm products for a fee.
- Or, any person or legal entity that recruits, supplies, or hires workers on behalf of someone engaged in farming for a fee.
- Or any person or entity that provides board, lodging, or transportation for those workers.
If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee).
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To become a licensed farm labor contractor (FLC) in California, you must:
- Be at least 18 years old.
- Be a resident of California or have a business location in California.
- Have a good moral character.
- Pass a background check.
- Pass a written examination.
- Obtain a California Farm Labor Contractor Bond.
- Pay a license fee.
To apply for a farm labor contractor license, you must submit an application to the California Department of Industrial Relations (DIR). The application must include:
- A completed application form.
- A copy of your driver’s license or other government-issued photo identification.
- A copy of your Social Security card or Individual Taxpayer Identification Number (ITIN).
- A copy of your business license, if applicable.
- A copy of your California Farm Labor Contractor Bond.
- A cashier’s check or money order for the license fee.
You can obtain an application form and more information about the licensing process from the DIR website: https://www.dir.ca.gov/dlse/flc.htm
Once you have submitted your application, the DIR will review it and conduct a background check. If your application is approved, you will be required to take and pass a written examination. The examination covers topics such as farm labor laws, regulations, and procedures. If you pass the examination, you will be issued a farm labor contractor license. The license is valid for one year and must be renewed annually.
In addition to the above requirements, you must also comply with a number of other requirements as a licensed farm labor contractor. For example, you must:
- Provide your workers with safe and sanitary working conditions.
- Pay your workers at least the minimum wage.
- Provide your workers with breaks and meal periods.
- Keep accurate records of your workers’ hours and wages.
You should also be aware that there are a number of prohibited activities for farm labor contractors in California. For example, farm labor contractors are not allowed to charge their workers fees for transportation or housing, and they are not allowed to engage in child labor or other illegal activities.
If you are interested in becoming a licensed farm labor contractor in California, you should visit the DIR website for more information about the licensing process and requirements. You should also consult with an attorney or other professional to ensure that you are in compliance with all of the applicable laws and regulations.
How to Get Your California Farm Labor Contractor Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.