California Code of Regulations
Title 8 - Industrial Relations
Division 1 - Department of Industrial Relations
Chapter 6 - Division of Labor Standards Enforcement
Subchapter 9 - Farm Labor Contractors
Article 1 - Application for Farm Labor Contractor License
Section 13664 - Surety Bonds; Establishing Annual Payroll

(a) To comply with the duty to obtain and maintain a surety bond (see Labor Code section 1684(a)(3)), the applicant for a Farm Labor Contractor license shall file with the Labor Commissioner a bond issued by a surety company duly authorized to do business in the State of California. The bond shall be on a form issued by the surety company which complies with the requirements of Labor Code 1684(a)(3) or on a form provided by DLSE (DLSE 402).

(b) As proof of annual payroll, the farm labor contractor shall provide to the Labor Commissioner copies of Employment Development Department's Quarterly Contribution Return and Report of Wages (DE 9), Quarterly Contribution Return and Report of Wages-Continuation (DE 9C), and Quarterly Contribution and Wage Adjustment Form (DE 9 ADJ), if applicable, for each quarter for the year preceding the pending application.

(c) If the Labor Commissioner, an employee, or an employee representative, proceeds against the surety bond and payment is made therefrom to the Labor Commissioner or to the employee or the employee representative, the employer shall take all steps and actions necessary to ensure that a surety bond which meets all of the requirements set forth in subdivision (a) of this section, including the required principal sum, is continuously in place so that there is not a break at any time in the continuity of the protection afforded by the bond. If the employer at any time fails to provide a surety bond that meets all of the requirements of subdivision (a) of this section, the Labor Commissioner shall suspend and may revoke the employer's license, or deny a renewal application for a license.

(d) To ensure that the purpose of the bond is fulfilled, in the event a contractor closes its business and ceases operating as a farm labor contractor, the Labor Commissioner will retain the bond in his or her possession for no more than six months after the employer ceases engaging in the business in order to provide for claims arising prior to the closure of the business.