BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Ted W. Lieu, Chair
Date of Hearing: June 27, 2012 2011-2012 Regular
Session
Consultant: Martha Gutierrez Fiscal:Yes
Urgency: No
Bill No: AB 1675
Author: Bonilla
As Introduced/Amended: March 20, 2012
SUBJECT
Farm labor contractors: licenses: civil penalty
KEY ISSUE
Should farm labor contractors have to pay civil penalties if
they are found to be operating without a license?
PURPOSE
To establish civil penalties for farm labor contractors who are
found to have violated license requirements.
ANALYSIS
Existing law defines a "farm labor contractor" 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, or who recruits,
solicits, supplies, or hires workers on behalf of an employer
engaged in the growing or producing of farm products, and who,
for a fee, provides in connection therewith one or more of the
following services: furnished board, lodging. or transportation
for those workers as specified. (Labor Code � 1682)
Existing law includes within the definition of farm labor
contractor the inclusion of a "day hauler." Day hauler is any
person who is employed by a farm labor contractor to transport,
for a fee, by motor vehicle, workers to render personal services
in connection with the production of any farm products, under
the direction of a third person. (Labor Code � 1682.3)
Existing law requires farm labor contractors to be licensed by
the Labor Commissioner and to comply with specified employment
laws applicable to farm labor contractors. To obtain a license
the person has to deposit with the Labor Commissioner a security
bond in the amount based on the size of the person's annual
payroll for all employees. The person must also take a written
examination; and must correctly answer at least eighty five
percent (85%) of the questions posed within the four hour time
period allotted. This examination will ensure that the person
has knowledge in current laws regarding wages, hours, and
working conditions, penalties, employee housing and
transportation, collective bargaining, field sanitation and safe
work practices relating to pesticide use, field reentry
regulations and symptoms and appropriate treatment of pesticide
poisoning. In addition, the person has to enroll and
participate in at least eight hours of relevant, educational
classes each year. The classes shall be chosen by the Labor
Commissioner. (Labor Code � 1684)
Existing law specifies that when a person is found to be in
violation of farm labor contractor requirements they can receive
a misdemeanor punishable by specified fines, or imprisonment in
the county jail for not more than six months, or both. (Labor
Code � 1697)
This Bill would establish civil penalties for failure to obtain
the required farm labor contractors license. Specifically, this
bill:
1. Makes a person who acts as a farm labor contractor
without a license from the Labor Commissioner subject to a
civil penalty as follows:
a) The initial citation for a person who violates this
section is subject to a citation of, one hundred dollars
($100) for each farmworker employed by the unlicensed
person, plus one hundred dollars ($100) for each calendar
day that a violation occurs, for a total penalty not to
Hearing Date: June 27, 2012 AB 1675
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Senate Committee on Labor and Industrial Relations
exceed ten thousand dollars ($10,000).
b) The second citation shall be, two hundred dollars
($200) for each farmworker employed by the unlicensed
person, plus two hundred dollars ($200) for each calendar
day that a violation occurs, for a total penalty not to
exceed twenty thousand dollars ($20,000).
c) The third or subsequent citation, five hundred
dollars ($500) for each farmworker employed by the
unlicensed person, plus five hundred dollars ($500) for
each calendar day that a violation occurs, for a total
penalty not to exceed fifty thousand dollars ($50,000).
1. Requires the labor Commissioner to issue a citation if,
upon inspection determines that a person has violated the
license requirements.
2. Requires civil penalties collected from this section to
be deposited into the Farmworker Remedial Account.
3. Specifies that the civil penalties provided in this
section are in addition to any other penalty provided by
current law.
4. Specifies that the required "license" under this section
includes a letter of authorization by the labor
Commissioner to legally operate as a farm labor contractor.
COMMENTS
1. Need for this bill?
Currently, farm labor contractors are required to obtain a
license from the Labor Commissioner in order to legally
operate in the state. The person must take a written
examination and must correctly answer at least eighty five
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Senate Committee on Labor and Industrial Relations
percent (85%) of the questions posed within the four hour time
period allotted. This examination will ensure that the person
has knowledge in current laws regarding wages, hours, and
working conditions, penalties, employee housing and
transportation, collective bargaining, field sanitation and
safe work practices relating to pesticide use, field reentry
regulations and symptoms and appropriate treatment of
pesticide poisoning. In addition, the person has to enroll
and participate in at least eight hours of relevant;
educational classes each year to ensure education continues.
Unfortunately, heat-related deaths are a reminder that
agriculture is one of the few industries in this state and
country where a person can be worked to death. Those who
survive heat illness can still develop serious conditions,
including heart, liver, kidney, and muscle damage, nervous
system problems, and blood disorders. For these reasons it is
important that employers are adequately educated on all areas
of potential farm work related hazards.
Under existing law, a person who violates farm labor
contractor requirements can be found guilty of a misdemeanor
punishable by fines, or imprisonment in the county jail for
not more than six months, or both. AB 1675 would assist the
Labor Commissioner in its enforcement efforts by also imposing
civil penalties for farm labor contractors operating without a
license. This additional penalty will serve as a deterrent
for those contractors disobeying the law.
2. Proponent Arguments :
According to the author, this bill guarantees that bad actors
are penalized for breaking the law. The penalty will serve as
a deterrent for disobeying the law or to re-offend. They argue
that this legislation will also assist the Division of Labor
Standards Enforcement in its labor law enforcement efforts,
and send a message to unlicensed farm labor contractors that
the consequences of operating without a license now carry the
likelihood of the imposition of stiff civil penalties.
They further state that AB 1675 will also require that the
Hearing Date: June 27, 2012 AB 1675
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Senate Committee on Labor and Industrial Relations
civil penalties collected from unlicensed contractors be
deposited in a pre-existing farm worker wage protection fund
which ensures that unlicensed contractors help finance a
system that has been making disbursements for farm workers
cheated out of wages by unlicensed farm labor contractors (and
which is currently funded by a portion of each licensed farm
labor contractor's annual license fee).
According to the sponsor of this bill, the California Rural
Legal Assistance Foundation licensing violations are rarely,
if ever, prosecuted, and leave the Labor Commissioner, without
the legal weapons she has in other contexts, e.g. garment, car
washing and construction contracting, to deter unlicensed
contractor activities through assessment of civil penalties.
They argue that, for example, A car wash employer who fails to
register as a car wash establishment is subject to a civil
penalty of one hundred ($100) per day, up to a maximum of ten
thousand dollars ($10, 000), the employer conducts car washing
and polishing while unregistered. A garment manufacturer who
does not comply with their licensing requirements are subject
to a civil penalty of one hundred dollars ($100) for each
affected employee, for the initial violation, and two hundred
dollars ($200) per employee for second or subsequent
violations. A construction contractor who is found operating
without a license is subject to a civil penalty of two hundred
dollars ($200) per employee for each day of the contract. The
civil penalties deter bad actors from breaking the law. This
bill will allow the Labor Commissioner to issue a civil
penalty for the first, second or third offence in graduated
amounts is designed to deter future misconduct.
3. Opponent Arguments :
None on file.
4. Prior Legislation :
AB 243 (Alejo), Chapter 761, Statutes of 2011
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Senate Committee on Labor and Industrial Relations
Required an employer who is a farm labor contractor (FLC) to
disclose on the itemized payroll statement furnished to
employees the name and address of services. It also provided
that the list by the FLC of the mane and address of the legal
entity that secured the services of the employer on the
itemized payroll statement that shall not create any liability
on the part of that legal entity.
SB 1514 (Solis), Chapter 875, Statutes of 1998
Imposed a $500 civil penalty on garment manufacturers, with no
employed workers, who fail to register with the Labor
Commissioner. The bill also eliminated the misdemeanor
associated with this violation for these manufacturers.
AB 1688 (Goldberg), 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 Labor Commissioner. 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.
SUPPORT
Agricultural Council of California
American Pistachio Growers
California Chamber of Commerce
California Association of Nurseries and Garden Centers
California Bean Shippers Association
California Catholic Conference
California Cherry Export Association
California Citrus Mutual
California Communities United Institute
California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
California Cotton Ginners Association
California Farm Bureau Federation
California Grape and Tree Fruit League
California Labor Federation
California Pear Growers Association
California Rural Legal Assistance Foundation
Hearing Date: June 27, 2012 AB 1675
Consultant: Martha Gutierrez Page 6
Senate Committee on Labor and Industrial Relations
California Seed Association
California State Floral Association
California Teamsters Public Affairs Council
Engineers and Scientists of California
International Longshore & Warehouse Union
Nisei Farmers League
Professional and Technical Engineers, Local 21
UNITE HERE
United Food and Commercial Workers Union, Western States Council
Western Agricultural Processors Association
Western Growers
Wine Institute
OPPOSITION
None on file.
Hearing Date: June 27, 2012 AB 1675
Consultant: Martha Gutierrez Page 7
Senate Committee on Labor and Industrial Relations