California Farm Labor Contractor Bond

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Why is a California Farm Labor Contractor Bond Required?

This surety bond is required for all licensed labor contractors. It's used by the Department of Industrial Relations as the only tool they have to hold license holders accountable to state labor laws.

There is no way government employees can police all license holders. So the surety bond is required as a means of protection for the foreign laborers in they are exploited by the licensed contractors.

It's unfortunate, but every year there are legitimate complaints against foreign labor contractors for exploitation of workers including:

• Paying below appropriate wages
• Failing to provide transportation or safe transportation
• Paying no or below adequate wages
• Securing housing that is dangerous or does not provide livable means
• Failing to uphold other benefits owed to workers outlined in their contracts

If a foreign labor contractor suffers legitimate complaints of these violations or similar, the workers can make a claim against the surety bond for financial compensation. The maximum amount of any one claim or a multitude of claims is capped at the required bond amount.

This bond amount will also dictate the price you'll pay to purchase your bond.

What Are The California Foreign Labor Contractor Bond Amounts?

The bond amount you're required to purchase will be based on the annual gross receipts from operations with a minimum if you're just getting started.

The bond amounts are as follows:

How Much Does The California Foreign Labor Consultant Bond Cost?

All surety bonds are underwritten similar to a "traditional" insurance policy by a surety. A surety is an insurance company that chooses to provide foreign labor consultant bonds.

Of the select sureties who can provide this type of bond, they will evaluate each licensee using the following factors:

• The personal credit of the owner or owners
• Industry and past experience
• Prior bond history if an owner has been licensed in the past

Based on these factors the surety will quote a rate and this rate multiplied by your bond amount from above will be the price you pay.

This process is how you can save thousands of dollars purchasing your bond.

How To Save Thousands Of Dollars Purchasing Your Foreign Labor Consultant Bond?

We are Surety Bonds Direct, a specialized surety agency. We work with the highest A-rated sureties to price shop for our customers and find the lowest possible price.

While the different sureties use the same factors to quote a rate, they all have different thresholds, risk tolerances, and current exposures in the labor market.

Because of this, the rate they quote will vary by 1 to 3 percentage points. And this is enough to save you hundreds on the low end to thousands of dollars if your bond amount is higher than the minimum $50,000.

Here is example pricing looking at the $50,000 bond amount.

Pay attention to the price difference from 2% to 4% because that is not much money you can potentially save just by having us price shop for you.

You'll learn more about this below, but the prices in the table are one payment for the bond term.

Imagine if you have to upgrade to the $100,000 or $150,000 bond. The savings are significant.

If you're ready for us to find you, your lowest price, fill out our online quote form and tell us about your business.

If you prefer, you can call a bond specialist at 1-800-608-9950.

How Long Does The California Foreign Labor Consultant Bond Last?

This bond has a bond term or one year from the effective date. The effective date is the start date and you choose this when you're purchasing your bond.

As your bond term's effective date approaches, you will have to renew your bond for the following 12 months. It's during this time when you will look at your gross receipts and adjust your bond amount as necessary.

We not only help you purchase your bond, but we make it easy to renew your bond because we manage it for you.

When you purchase your bond, you're assigned a bond specialist to help manage your account. As your bond expiration date approaches, your bond specialist will contact you 30 to 45 days in advance to make sure the renewal premium is paid on time so your bond remains active.

Your bond specialist will also help you update your bond if the amount needs to change.

Farm Labor Contractor Bonds And Getting Your California Business License/Registration

Getting your license or registration is outlined well by the Department of Industrial Relations.

At a high level, the steps are:

• Complete the application and pay the $95 registration fee
• Provide a copy of your business formation documents that are on-file with the Secretary of State
• Purchase your surety bond and submit a copy with your application
• Provide your LiveScan fingerprints for a criminal background check
• Submit a copy of your drivers license

When you're ready to get your bond done, complete our online quote form and tell us about your business.

If you prefer, you can call a bond specialist at 1-800-608-9950.