Farm Labor Contractor Bond Overview
Several states, notably California, Idaho, Washington, Oregon, Florida and Connecticut, require that farm labor contractors register with a state agency and post a farm labor contractor bond. The purpose of this surety bond varies slightly by state. In general, it guarantees compliance with all applicable state regulations. The bond also offers protection to employees hired by the contractors, ensuring they work under proper conditions and get paid on time.
If any of the stipulations of the bond agreement are violated, the farm labor contractor can face a claim up to the full penal sum of the bond. Bonding companies will step in to compensate the claimant, but will then seek full reimbursement from the contractor.
Farm Labor Contractor Bond Cost
We offer a free bond cost calculator in the sidebar, that you can use to get an estimate of your expected expenses. However, it’s useful to learn more about the factors that can influence bond costs.
States determine what the total bond amount for the surety bond they require will be. This amount refers to the coverage the bond offers, if a claim is made against the bond. Sometimes the amount is fixed for all bonds in the state, but other times states decide on a case-by-case basis. States sometimes amend total bond amounts if they feel the risk for bond claims has increased or decreased. Let’s look at the total bond amounts for some states that require farm labor contractor bonds.
California Farm Labor Contractor Bond
Bonds amounts here depend on your payroll for the year. New applicants are required to get a $25,000 bond. Subsequent amounts are as follows:
- $25,000 for payrolls up to $500,000 a year
- $50,000 for payrolls between $500,000 and $2 million
- $75,000 for payrolls in excess of $2 million
Oregon Farm Labor Contractor Bond
In Oregon, the total bond amount is set not based on the contractor’s payroll, but rather on the number of workers employed. The total bond amounts are as follows:
- $10,000 for 20 employees or less
- $30,000 for 21 or more employees
Washington Farm Labor Contractor Bond
In Washington, too, the number of employees is what determines the total bond amount. However, the amounts are different:
- $5,000 for 1 - 10 employees
- $10,000 for 11 - 50 employees
- $15,000 for 51 - 100 employees
- $20,000 for 100 employees or more
Nebraska Farm Labor Contractor Bond
In Nebraska, farm labor contractor bond amounts are not fixed, but determined by the Department of Labor. The minimum amount is $5,000.
Calculating your bond premium
Once you know the total bond amount required from you, you can calculate your premium. Premiums are a small percentage of the total amount, usually paid annually or biannually. Applicants with a clean credit report and a high credit score may only pay as little as 1% of the total amount.
Other factors, such as financial strength, can also be of importance when applying to get your surety bond. To learn more, go to our surety bond cost guide.
Farm Labor Contractor Bond with Bad Credit
Getting bonded with bad credit can be tough, because surety bonds assume a higher risk when underwriting them. This means that during the bonding process, you may be required to provide more paperwork, such as personal and business financial statements. Your premium is also likely to be higher– in the range of 5% to 10%.
Bryant Surety Bonds has extensive experience in underwriting bad credit surety bonds, so you can rest assured that you will get expert advice from our agents, and get the lowest possible premium.
Start Your Application Today!
You can start your online application now. It’s just one page and takes a few minutes to complete. Afterwards, we’ll do most of the work for you. We’ll contact you with a free bond quote and some instructions on how to finalize your application. You will be asked to sign an indemnity agreement with the bonding company, which is a standard across the industry.
What’s next? We will do our best to get your bond form signed in the next 1-2 business days, email you a digital copy, and send you the original by mail.