Farm Labor Contractor Bonds Double in 2027: What AB 2227 Means for You

If you hire, transport, or supervise farmworkers in California, a new law will change your licensing requirements. Signed in September 2026, AB 2227 doubles the surety bond required of California farm labor contractors starting January 1, 2027. Here’s a straightforward guide to what’s changing and how to prepare for your next renewal.

What Is Changing for California Farm Labor Contractors

• The FLC license bond doubles at every payroll tier.
• Citation penalties now apply to licensed contractors, not only unlicensed ones.
• Bond details will appear on the Labor Commissioner’s public license database.
• If a final judgment equals or exceeds your bond, you must obtain an additional bond within 60 days.

A Quick Look at the New Bond Amounts Contractors with annual payroll of up to $500,000 will see their bond increase from $25,000 to $50,000. For payroll between $500,000 and $2 million, the bond will rise from $50,000 to $100,000. And for payroll above $2 million, it will go from $75,000 to $150,000. The new amount takes effect at your first annual renewal on or after January 1, 2027, or when a new license is issued after that date.

Your Farm Labor Contractor Bond Renewal Checklist

1. Find your license renewal date.
2. Confirm your annual payroll tier.
3. Gather your personal credit information, plus business and personal financial statements if your bond will exceed $50,000.
4. Request your bond early so the new amount is ready to file with your renewal.
5. Keep wage and employment records in order, since penalties now reach licensed contractors too.

Your Bond, Handled by Surety Ez

Surety Ez, owned and operated by Cal Society Insurance Services, writes California farm labor contractor bonds. Call 1-800-773-1663 or visit www.suretyez.com to request a quote. See the full AB 2227 farm labor contractor bond guide for the complete tier table and FAQ.

Consider the Rest of Your Operation

A license bond is just one part of running a compliant farm labor business. Cal Society Insurance Services, a Los Angeles commercial insurance agency, also helps contractors find commercial auto and other business coverage. Give us a call, and we’ll talk through what your operation needs.

Farm Labor Contractor Bond Questions

Does AB 2227 affect my current farm labor contractor license? Yes. Your current bond stays in place until your first annual renewal on or after January 1, 2027. At that renewal, you must file a bond at the new amount for your payroll tier.

Can Cal Society help me get my FLC bond? Yes. Cal Society’s bond division, Surety Ez, issues California farm labor contractor bonds. Call 1-800-773-1663 to start.

Is a surety bond the same as insurance? No. A surety bond is a guarantee to the State of California and the workers it protects, not insurance for your business. If the bond pays a valid claim, you are generally required to repay the surety.

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