Bill
AB 2227
AB 2227 tightens licensing for farm labor contractors, links licenses to federal registration, raises bonds by gross receipts, and strengthens training, enforcement, and worker pro
Bill: AB 2227
Jurisdiction: California
Sponsor: Assembly Member Connolly (co-sponsor: Damon Connolly)
Committee: Labor and Employment (as of latest action)
Introduced: February 19, 2026
Status: Re-referred to Com. on L. & E. (April 13, 2026)
Purpose and intent
- AB 2227 aims to strengthen oversight and accountability of farm labor contractors (FLCs) by tightening licensing requirements, increasing bond protections, and expanding dispute-resolution mechanisms. The bill also seeks to improve transparency around bond status and ensure stronger safeguards for farmworkers against wage and other labor-law violations.
Key provisions and changes
1) Expanded licensing application requirements (Labor Code 1684)
- Adds to the required information in the written license application:
- Certificate of registration as a farm labor contractor with the United States Department of Labor (DOL).
- This creates a higher evidentiary standard for licensing and renewals, tying California licensing to federal registration.
2) Bonding requirements based on gross receipts (Labor Code 1684)
- Replaces the previous payroll-based bond schedule with a gross-receipts-based schedule for farm labor contractors.
- Distinctions based on foreign labor contractor status:
- If the contractor is registered as a foreign labor contractor with the DOL, bond amounts align to gross receipts as follows:
- Up to $500,000 gross receipts: $25,000 bond
- $500,000 to $2,000,000: $50,000 bond
- Greater than $2,000,000: $75,000 bond
- If not registered as a foreign labor contractor:
- Up to $500,000 gross receipts: $50,000 bond
- $500,000 to $2,000,000: $100,000 bond
- Greater than $2,000,000: $150,000 bond
- Documentation of gross receipts required (via various state department data sources, similar to payroll verification today).
- Bond information must be included in the public Farm Labor Contractor license database (bond size, numbers, dates, and surety contact).
3) Bond-related disclosures and consumer protections (Labor Code 1684)
- Labor Commissioner must disclose bond availability and process to workers who filed claims during conferences/hearings.
- Bond information must be available for the previous five years on the public license database.
4) Financial administration and enforcement funding (Labor Code 1684)
- License fee structure:
- Base license fee: $500 plus $10 filing fee (the $10 filing fee waived for timely renewals).
- License fee increases to $600 starting January 1, 2015 (allocation for enforcement units and Farmworker Remedial Account; note: dates reflect text in prior versions and may require alignment with current fiscal year in final enactment).
- Farmworker Remedial Account:
- $150 of each licensee’s annual fee deposited into this account.
- Used to satisfy claims for unpaid wages, interest, damages, penalties against licensees or unlicensed contractors.
- Disbursements come from the account and are recoverable if funds later recouped from liable parties.
- Recovered funds returned to the account.
5) Examination and training requirements (Labor Code 1684)
- Applicants for licensure must pass a written exam with at least 85% correct, up to 4 hours, max 3 attempts per year.
- Exam content covers wages, hours, housing/transportation, safety, pesticide handling, sexual harassment prevention, and related regulations.
- Renewal requires continuing education: at least nine hours yearly, including one hour of sexual harassment prevention.
- Renewal may be exempted from the exam if recently passed and other conditions are met.
6) Federal and workplace training alignment (Labor Code 1684)
- Requires enrollment in training related to pesticide safety, field sanitation, safe pesticide handling, and harassment prevention.
- Sexual harassment training must be in the employee’s language or provided with interpretation.
- Annual reporting: licensees must provide materials used for harassment training and keep attendance records for three years.
- Data aggregation: the Labor Commissioner shall publish annual totals of employees trained in harassment prevention.
7) Compliance and enforcement timelines (Labor Code 1697.25)
- If a grower, FLC, or related party fails to appear or answer a complaint timely, the Labor Commissioner must issue an order, decision, or award as stated in the complaint, with right to appeal under existing procedures.
8) Reimbursements and local costs
- The bill clarifies that no reimbursement is required for local agencies/school districts under Section 6, Article XIII B of the California Constitution, as implementation involves changes to penalties and licensing rather than new unfunded mandates.
Who is affected
- Farm labor contractors and their supervisors/employees who operate in California.
- Foreign labor contractors registered with the federal government (DOL) versus those not registered as foreign labor contractors.
- Farmworkers who rely on licensed farm labor contractors for wages, housing, safety, and related protections.
- Local and state enforcement offices (Labor Commissioner) and related regulatory agencies involved in licensing, bond administration, and enforcement.
Procedural and timeline aspects
- The bill contains standard legislative actions: referral to committees, amendments, and potential floor votes. If enacted, provisions tied to bond sizes and licensing requirements would take effect per the bill’s schedule, with ongoing implementation through the Labor Commissioner’s licensing, bonding, and enforcement processes.
- Some text references historical dates; final enactment should align with current fiscal years and administration timelines.
Overall assessment
- AB 2227 would raise the financial protections for farmworkers by linking licensing to federal registration, adjusting bond requirements to gross receipts, enhancing transparency about bonds, expanding training and examination standards, and strengthening enforcement mechanisms for wage and labor-law violations within California’s farm labor contracting sector.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
