SENATE BILL REPORT

SHB 750

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Cole, Patrick and Fisher; by request of Department of Labor and Industries)

Changing provisions relating to farm contractors' security bonds.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 25, 1987

Majority Report:     Do pass.

     Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Cantu, Lee, Tanner, Vognild, West, Williams, Wojahn.

Senate Staff:Jack Brummel (786-7428)

                March 25, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 25, 1987

BACKGROUND:

In 1985 the Legislature amended the farm labor contractor law to require each licensed contractor to provide a $5,000 surety bond or other approved security to operate as a farm labor contractor.  The Director of the Department of Labor and Industries was authorized to bring suit against the bond to enforce claims made by workers.  A civil cause of action was also enacted.  This law was again revised in 1986 to limit the liability of a farm labor contractor's bond to wage claims and to require that any suit against the bond be brought independently after establishing adequate proof of liability.

SUMMARY:

The farm labor contractor's bond is liable for sums legally owing under contract to any agricultural employees.  The bond may not be cancelled during its term without 30 days notice to the Department of Labor and Industries.

Any person having a claim for wages may bring an action on the bond or security deposit.  Claims against the farm labor contractor may be filed against the contractor and the bond or security deposit.  The requirement that the contractor's liability be established in an independent action is deleted.  The Department may also bring suit upon the bond on behalf of any worker whose rights have been violated under the farm labor licensing provisions.

Contractual damages are allowed against the bond but statutory damages may not be claimed against the bond.  If a security deposit in lieu of a bond has been filed with the Department of Labor and Industries, a claimant may proceed against the deposit and is entitled to recover statutory damages.

Fiscal Note:    none requested

Senate Committee - Testified:   No one