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Top Five Reasons To Have A Farm Labor Contractor Agreement
Corporate & Business Law Group Update | 11/4/2009

Although farm labor contractors are frequently used in farming operations, neither the grower nor the contractor typically signs any type of written agreement. A written agreement provides a multitude of protections, including:

1. Indemnification: Grower coverage for any losses related to contractor’s work, including claims brought by contractor’s employees.
2. Insurance: Requirement to maintain adequate general liability insurance, automobile insurance and worker’s compensation insurance.
3. Scope of Work: Specify who is to perform the work, when it is to be performed and where and also address other issues such as access to the property, use of water and use of equipment.
4. Employment Issues: Require that the labor contractor represent and warrant that he will comply with all applicable laws and indemnify the grower for any claims as a result of failing to comply with such laws.
5. Licensing: Clearly set forth licensing obligations and impose significant penalties for failure to comply. The California Labor Code imposes affirmative duties with respect to proof and verification of valid state licensing and violation of these requirements could subject a grower or contractor to a civil action by an aggrieved worker, including attorney’s fees.

If you have any questions regarding farm labor contractors or the specifics of a farm labor contractor agreement, please contact Melissa Sayer or any member of the Firm’s Corporate & Business Law Group.