CAL.Regulation
California raises farm labor contractor surety bonds by payroll tier
Governor Gavin Newsom signed AB 2227 (Chapter 294, Statutes of 2026) on September 18, 2026, amending Labor Code sections 1683 and 1684. From January 1, 2027, licensed farm labor contractors must post a $50,000 surety bond for payrolls up to $500,000, $100,000 for payrolls of $500,000 to $2 million and $150,000 above $2 million, double the previous tiers, deposited at first registration or first annual renewal. The Labor Commissioner must publish bond details on its public license database.
Enrolled text (California Legislative Information) →
Key points
- AB 2227 became Chapter 294, Statutes of 2026, approved September 18, 2026; non-urgency, effective January 1, 2027.California Legislative Information
- Bond tiers key to annual payroll: $50,000 up to $500,000; $100,000 to $2 million; $150,000 above $2 million.California Legislative Information
- The previous tiers were $25,000, $50,000 and $75,000; the existing 60-day additional-bond rule after a final judgment remains.California Legislative Information
- The Labor Commissioner must publish bond number, dates, size and surety contact for active bonds on a public database.California Legislative Information
- The Labor Commissioner must disclose bond availability and claims access to any worker who files a claim against a contractor.California Legislative Information
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California Legislative Information
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RegulationCal.AB 2227 - Farm labor contractors: surety bonds (2026)AgricultureEmploymentFor practitionersFor governance