Wage & Hour
AB 2227 (2026): Surety Bonds Double for Farm Labor Contractors
Updated
Assembly Bill 2227, by Assembly Member Connolly, amends the Labor Code to raise the surety bond amounts that farm labor contractors must deposit with the Labor Commissioner and to extend certain civil penalties to licensed contractors, not just unlicensed ones. As an ordinary statute, it takes effect January 1, 2027.
Background
California requires anyone acting as a farm labor contractor to be licensed by the Labor Commissioner and to comply with the employment laws applicable to that role. Labor Code section 1683 sets civil penalties for violations, and Labor Code section 1684 lists the conditions for issuing or renewing a license, including a surety bond.
Under prior law, section 1683 penalized violations by an unlicensed person, and the bond required under section 1684 was tied to the size of the contractor’s annual payroll: a $25,000 bond for payrolls up to $500,000, a $50,000 bond for payrolls of $500,000 to $2,000,000, and a $75,000 bond for payrolls above $2,000,000.
What the Law Changes
The bill doubles each bond tier. It requires a $50,000 bond for payrolls up to $500,000, a $100,000 bond for payrolls of $500,000 to $2,000,000, and a $150,000 bond for payrolls greater than $2,000,000. These bond amounts are deposited when a contractor first registers or files the application for their first annual renewal.
The bill also revises section 1683 so that the civil penalty schedule reaches a violation by an unlicensed person or a licensed farm labor contractor. The initial-citation penalty remains $100 per farmworker plus $100 for each calendar day of violation, capped at $10,000, with higher amounts for repeat citations.
In addition, the measure directs the Labor Commissioner to include bond information on the public farm labor contractor license database, covering the bond number, effective and expiration dates, bond size, and surety company contact information for all active bonds over the previous five years.
AB 2227 doubles the surety bond a farm labor contractor must deposit to obtain or renew a license and applies the section 1683 civil penalties to licensed contractors as well as unlicensed persons.
Bond Disclosure and Additional Bonds
The Labor Commissioner must disclose information about the availability of the surety bond and the process for accessing it to any worker who has filed a claim against a farm labor contractor. A contractor subject to a final judgment in a year equal to or greater than the required bond amount must deposit an additional bond within 60 days.
What This Means for You
The new law increases the surety bonds that licensed farm labor contractors must post and extends the section 1683 civil penalties to licensed contractors. It touches agricultural workplaces and disputes over wages, damages, and other monetary relief owed to farmworkers.
I write these summaries as general information about developments in California employment law. They are not legal advice and don’t create a mediator–client relationship. For guidance on a specific matter, consult a qualified attorney.