BILL ANALYSIS �
AB 1675
Page 1
Date of Hearing: March 28, 2012
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Sandre Swanson, Chair
AB 1675 (Bonilla) - As Amended: March 20, 2012
SUBJECT : Farm labor contractors: licenses: civil penalties.
SUMMARY : Establishes civil penalties for unlicensed farm labor
contractors. Specifically, this bill :
1)Makes a person who acts as a farm labor contractor without a
license subject to a civil penalty as follows:
a) For any initial citation, one hundred dollars for each
farmworker employed by the unlicensed person and one
hundred dollars of each calendar day that a violation
occurs, for a total penalty not to exceed ten thousand
dollars;
b) For a second citation, two hundred dollars for each
farmworker employed by the unlicensed person and two
hundred dollars for each calendar day that a violation
occurs for a total penalty not to exceed twenty thousand
dollars; and,
c) For a third violation, or subsequent citation, five
hundred dollars for each farmworker employed by the
licensed person and five hundred dollars for each calendar
day that a violation occurs, for a total penalty not to
exceed fifty thousand dollars.
2)Specifies that a "license" includes a letter of authorization
issued by the Labor Commissioner (LC) under existing law,
where the licensee has fulfilled all the requirements for a
license but the LC has not been timely able to issue or renew
a license.
3)Requires the Labor Commissioner (LC) to issue a citation if,
upon inspection or investigation, the LC determines that a
person has violated this section.
4)Specifies that the procedures for issuing, contesting, and
enforcing citations or civil penalties issued by the LC for a
violation of this section are the same as those described
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under existing law.
5)Requires the civil penalties collected pursuant to this
section be deposited into the Farmworker Remedial Account.
6)Specifies that the civil penalties established in this section
may be levied in addition to any other penalty provided by the
law.
EXISTING LAW :
1)Defines "farm labor contractor" as any person who, for a fee,
does one or all of the following:
a) Employs workers to render personal services in
connection with the production of any farm products to,
for, or under the direction of a third person;
b) Recruits, solicits, supplies or hires workers on behalf
of an employer engaged in the growing or producing of farm
produces; and,
c) Provides, for a fee, furnishes board, lodging, or
transportation for those workers, supervises, times,
checks, counts, weighs, or otherwise directs or measures
their work, or disburses wage payments to these persons.
2)Specifies that "farm labor contractor" includes any "day
hauler," defined as a person who is employed by a farm labor
contractor to transport workers to carry out their employment
duties.
3)Requires a person to obtain a license from the LC in order to
operate as a farm labor contractor.
4)Requires a person to deposit a surety bond with the LC prior
to the issuance of the farm labor contractor license.
5)Establishes the Farmworker Remedial Account to provide a
source of funds to be disbursed by the Labor Commissioner to
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persons who have been damaged by any licensee or licensed farm
labor contractor whenever such damage exceeds the limits of
the licensee's bond.
6)Establishes the Division of Labor Standards Enforcement (DLSE)
within the Department of Industrial Relations to enforce
minimum labor standards and to protect employers who comply
with the law from those who attempt to gain competitive
advantage at the expense of their workers by failing to comply
with minimum labor standards.
7)Creates the Bureau of Field Enforcement (BOFE) within the DLSE
to investigate and enforce statutes covering unlicensed
contractors, cash pay, workers' compensation and other
specified laws. BOFE also handles criminal investigations
involving these group claims.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, under current law the only
enforcement authority the LC has against unlicensed farm labor
contractors is to refer to the matter for a possible criminal
misdemeanor prosecution. However, the author states that
licensing violations are rarely, if ever, prosecuted, and leave
the LC without the legal weapons he or she has in other
contexts, including garment manufacturing, and construction
contracting, to deter unlicensed contactor activities through
assessment of civil penalties. According to the Department of
Industrial Relations' database, there are 1,460 licensed farm
labor contractors in California.
The sponsor of this bill, the California Rural Legal Assistance
Foundation (CRLAF), states allowing the LC to issue a civil
penalty for the first, second or third offense in graduated
amounts is designed to deter future misconduct and assist DLSE
with its labor law enforcement efforts.
They note that these provisions are similar to the existing
civil penalty authority the LC has to address unlicensed car was
establishments, garment manufacturing and construction
contracting.
The Labor Code establishes civil penalties for specific labor
industries that require persons to obtain a license from the LC
prior to operating their business. For example, unlicensed
construction contractors who employ workers are subject to a
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civil penalty of two hundred dollars per employee per day of
employment. In addition, garment manufacturers who fail to
register with the LC are subject to a civil penalty of $100 per
employee for their initial violation and a civil penalty of $200
per employee for the second or subsequent violation.
Garment manufacturers who do not employ workers are subject to a
civil penalty of $500 if they fail to register with the LC.
PREVIOUS LEGISLATION :
SB 1514 (Solis), Chapter 276, Statutes of 1998, imposed a $500
civil penalty on garment manufacturers, with no employed
workers, who fail to register with the LC. The bill also
eliminated the misdemeanor associated with this violation for
these manufacturers.
AB 1688 (Golberg), Chapter 875, Statutes of 2003, established a
system to regulate the employment of workers in the car washing
and polishing industry, including a civil fine structure for car
wash establishments that fail to register with the LC. The bill
also established the Car Wash Worker Restitution Fund and the
Car Wash Worker Fund, the latter of which is partly funded by
fines associated with violations of the labor law.
REGISTERED SUPPORT / OPPOSITION :
Support
California Catholic Conference
California Labor Federation, AFL-CIO
California Rural Legal Assistance Foundation (Sponsor)
Opposition
None on file.
Analysis Prepared by : Shannon McKinley / L. & E. / (916)
319-2091