BILL ANALYSIS �
AB 1675
Page 1
Date of Hearing: August 18, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1675 (Bonilla) - As Amended: March 20, 2012
Policy Committee: Labor and
Employment Vote: 5-1
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill establishes civil penalties for a person who acts as a
farm labor contractor (FLC) without a license, as specified.
Specifically, this bill:
1)Establishes the following civil penalties:
a) For any initial citation, $100 for each farmworker
employed by the unlicensed person, plus $100 for each
calendar day that a violation occurs, for a total penalty
not to exceed $10,000.
b) For a second citation, $200 for each farmworker employed
by the unlicensed person, plus $200 for each calendar day
that a violation occurs, for a total penalty not to exceed
$20,000.
c) For a third citation, $500 for each farmworker employed
by the unlicensed person, plus $500 for each calendar day
that a violation occurs, for a total penalty not to exceed
$50,000.
2)Requires the Labor Commissioner (LC) to issue a citation upon
inspection or investigation. Further specifies the procedures
for issuing, contesting, and enforcing a citation or civil
penalties for a violation of this section be the same as those
utilized for minimum wage or overtime violations, as
specified.
3)Requires the civil penalties collected to be deposited into
the Farmworker Remedial Account (FRA) and be available, upon
AB 1675
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appropriation by the Legislature, as specified.
FISCAL EFFECT
Increased special fund costs, likely between $63,000 and
$250,000, to the Department of Industrial Relations (DIR) for
additional staff to investigate citations and conduct appeals
pursuant to the requirements of this measure. This cost may be
offset by civil penalties established by this measure.
COMMENTS
1)Background . Statute defines an FLC as any person who, for a
fee, 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. Statute also delineates an FLC
as an entity that recruits, solicits, supplies, or hires
workers on behalf of an employer engaged in the growing or
producing of farm products, and for a fee, provides one or
more of the following services: furnishes lodging or
transportation for workers; supervises, times, checks, counts,
weighs, or otherwise directs or measures their work; or
disburses wage payments to these persons. Current law also
prohibits any person from acting as an FLC until a license has
been issued to him or her by the LC.
Existing law requires all garment contractors to be licensed
by the LC and establishes civil penalties for failure to do.
The penalties established are as follows: $100 for each
affected employee for the initial violation and $200 for each
affected employee for the second or subsequent violation.
Also, car wash businesses are required to register with the LC
and are assessed a civil penalty of $100 for each calendar day
(not to exceed $10,000) the employer conducts car washing
while unregistered.
2)Purpose . According to DIR, there are 1,496 FLCs licensed in
California. A July 2010 Insure the Uninsured report brief,
California employed approximately 80,000 farmworkers (44% of
the nation's farmworkers). The report further states an
estimated 37% of this workforce is employed by FLCs.
According to the author, "FLC are required to be licensed;
unlike �garment contractors and car washing businesses],
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however, there no penalties for FLCs that practice without a
license. Under current law, the LC's only enforcement
authority against unlicensed FLCs is to refer the matter for a
possible criminal misdemeanor prosecution, which is costly to
the state. Licensing violations are rarely, if ever,
prosecuted, and leave the LC without the legal weapons he or
she has in other �business areas]."
3)Previous related legislation . AB 243 (Alejo), Chapter 671,
Statutes of 2011, required an FLC to provide the name and
address of the of the legal entity that secured the services
of the FLC on the itemized wage statement provided to each
employee.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081