License & Permit
Farm Labor Contractor Bond
A farm labor contractor bond is a license bond some states require from contractors who recruit, hire, and pay farm workers for growers.
- Required by
- State labor departments (for example, the California Labor Commissioner)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state, for the benefit of farm workers, that the contractor will follow labor laws and pay what workers are owed. Claims can cover unpaid wages, interest, and damages from wage order violations. In California the bond is payable to the people of the state.
Who needs it
- Farm labor contractors
- Crew leaders who hire workers for growers
- Agricultural staffing companies
What the underwriter looks at
- Annual payroll
- Owners' credit
- Claims and wage complaint history
- Years in business
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond in California?
Current law ties it to annual payroll: $25,000 up to $500,000, $50,000 up to $2 million, and $75,000 above that. Reports indicate these amounts double starting January 1, 2027.
Is this the same as an H-2A bond?
No. The H-2A bond is a federal bond for labor contractors who use H-2A visa workers. A state farm labor contractor bond is separate.
What happens if there is a large wage judgment?
In California, a contractor with a final judgment equal to or more than the bond must post an additional bond within 60 days.