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2009 Legislation Farm Labor Contractors and Garment Manufacturers

AB 854 (Chapter 256, Statutes of 2009), with an effective date of January 1, 2010, added Section 273 to the Labor Code.  The Bill has added requirements to applicants for license (new or renewal) to operate as a Farm Labor Contractor or as a garment manufacturer, and for licensed Farm Labor Contractors or garment manufacturers with a change in key personnel, as follows:

  • Must submit a statement as to whether he or she has satisfied all requirements involving unpaid wages in a final court judgment, as defined, a final order issued by the commissioner, or an accord.
  • Subjects any person who provides false information on the statement to a civil penalty, as specified in the bill.
  • Requires the Labor Commissioner to deny the application if the statement shows unpaid wages, unless the applicant submits a bond or cash deposit to guarantee payment of the wages or a notarized accord demonstrating satisfaction of the obligation.
  • Requires the Labor Commissioner to suspend the license or registration of a farm labor contractor or a garment manufacturer who made a false representation in the statement and would make reinstatement contingent on the applicant demonstrating compliance with the unpaid wages requirements or submitting an accord showing satisfaction of that obligation.
  • Requires a licensee or registrant to notify the Labor Commissioner within 90 days of a final court judgment, final order issued by the Commissioner or an accord imposing requirements relating to unpaid wages and submit with the notice security, as previously described, for the unpaid wages.
  • Prohibits a licensee or registrant from having a person who is a named judgment debtor in a final court order or order issued by the Commissioner for unpaid wages serving in a key personnel capacity and would require the Commissioner to suspend the license or registration of a person who violates this prohibition.
  • Requires a licensee or registrant to pay to the Labor Commissioner all reasonable costs incurred in adverse license or registration activities, as defined, under its provisions

  See AB 854 for full text of Bill.