Overview of Oregon Farm Labor Contractor Bond Requirements
Farm labor contractors are not obliged to be licensed and respectively bonded on a nationwide level. Several states, however, require that those contractors post a farm labor contractor bond in order to secure the legal conducting of their practices, and Oregon is one of them.
The State Bureau of Labor and Industries requires all farm labor contractors in Oregon looking to get licensed to post a bond, as part of the licensing process. The purpose of the bond is to ensure that contractors comply with Chapter 183 of the Oregon Revised Statutes. The bond essentially protects the interest of the laborers, along with any subcontractors and business partners.
If any of the mentioned parties suffer losses or damages due to unlawful practices on behalf of the farm labor contractor, they can make a claim on your bond. Don’t forget that eventually it will be up to you to reimburse the surety for any penal sums paid out.
Do you have any question regarding the bonding process? Our surety experts are here to help. Reach out at 866.450.3412!
Cost of Oregon Farm Labor Contractor Bond
The bond amount for farm labor contractors in Oregon is formed based on the number of laborers you’re about to hire. For less than 20 employees the bond amount is $10,000, while for 21 and more employees the bond is in the amount of $30,000. Contractors looking to operate a farmworker camp need to post a $15,000 bond.
All these sums, however, are not the actual cost of the bond that you’ll be paying on a regular basis. The bond premium is just a fraction of the total amount, estimated by the surety company underwriting the bond. Among all factors being taken into account when estimating your bonding rate, your personal credit score is the most crucial one. The higher your credit score, the lower the rate you will get.
If you want to see how the personal credit score affects your bond premium, check the table below.
|Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Oregon Farm Labor Contractor Bond - Less Than 20 Employees||$10,000||$100-$150||$100-$250||$250-$500||$500-$750|
|Oregon Farm Labor Contractor Bond - Farmworker Camp||$15,000||$112.5-$225||$150-$375||$375-$750||$750-$1,125|
|Oregon Farm Labor Contractor Bond - 21 And More Employees||$30,000||$225-$450||$300-$750||$750-$1,500||$1,500-$2,250|
Bad Credit Surety Bond Program
For those applicants who have either low credit score or no credit history at all - there is still a chance for getting a decent bonding rate. Our Bad Credit Bond Program is designed for applicants whose credit score is far from perfect.
Usually, applicants with low credit score will receive a bonding premium rate in the range of 5% and 15%. The higher rate is a result of the increased financial risk that such applicants present to the surety company.
The experts at Bryant Surety Bonds have a vast experience in bonding clients with credit score from the whole spectrum. This means that even if you do not have a high credit score, our experts will help you find your way around it and still receive a proper bonding offer by applying to as many surety companies as needed.
In Case of a Surety Bond Claim
By posting an Oregon Farm Labor Contractor Bond, contractors agree to comply with Chapter 183 of the Oregon Revised Statutes. The bond doesn’t protect your business but the state, your employees and business partners.
Failing to pay wages on time or any other transgression from your legal obligation, connected to the bond, may lead to a bond claim. The affected party can seek reimbursement for up to the full amount of the penal sum. The surety company will cover the losses initially, but in the end you will have to reimburse the full amount. That’s why it is wise to avoid claims whenever possible.
Apply for Your Bond Here!
You can start your online application today! Fill out the application form and we will contact you back with a free bond quote and information about finalizing your application.
Once you complete it, it will take around 2 business days for the surety company to sign the bond. We’ll send a digital copy and mail you the original.
Do you have questions about your Oregon Farm Labor Contractor Bond? Our experts will help you at 866.450.3412!