HOUSE 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
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (11)
Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, R. King, O'Brien, Patrick, Sanders, Sayan, C. Smith and Walker.
House Staff:Chris Cordes (786-7117)
AS PASSED HOUSE MARCH 12, 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.
Statutory damages are deleted as damages that may be claimed against the bond and contractual damages are allowed 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: Not Requested.
House Committee ‑ Testified For: Clark Ransom, Department of Labor and Industries; Dan Ford, Evergreen Legal Services; Manual Contreras, Washington State Commission on Mexican-American Affairs.
House Committee - Testified Against: Doug Bohlke, Contractor Bonding Insurance Company.
House Committee - Testimony For: The procedures for filing suit against the farm labor contractor bond are cumbersome and could result in the loss of any remedy for some agricultural employees. Restricting the bond liability to wages sometimes precludes collecting for other damages suffered by the employees.
House Committee - Testimony Against: Increasing the liability against a farm labor contractor's bond should be done cautiously to ensure that bonds remain available to contractors at a reasonable price.