Governor signed AB 2227 (Chapter 294) on Sept. 18, 2026. California FLC surety bonds double to $50k / $100k / $150k by annual payroll, effective at first registration or renewal after Jan. 1, 2027. Not legal advice.
Last verified: September 30, 2026 (PT)
California farm labor contractors (FLCs) face higher license surety bonds under a statute signed in mid-September 2026.
Governor Gavin Newsom approved Assembly Bill 2227 on September 18, 2026. It was chaptered as Chapter 294, Statutes of 2026, amending Labor Code sections 1683 and 1684. The bill is non-urgency. Industry coverage and California’s ordinary effective-date rule point to January 1, 2027 as the operative date for the new bond schedule.
Verify at source / not legal advice. Confirm chaptered text, effective dates, renewal timing, and bond forms on live California Legislative Information and Labor Commissioner pages, and with counsel. Industry education only — not legal, underwriting, or placement advice.
AB 2227 doubles the surety bond an applicant must deposit with the Labor Commissioner before an FLC license is issued or renewed. The amount is keyed to annual payroll for all employees — not gross receipts, revenue, or contract volume.
| Annual payroll (all employees) | Prior bond | New bond (AB 2227) |
|---|---|---|
| Up to $500,000 | $25,000 | $50,000 |
| $500,000 to $2,000,000 | $50,000 | $100,000 |
| Greater than $2,000,000 | $75,000 | $150,000 |
Figures come from the chaptered bill text and Legislative Counsel digest (prior tiers), and from Western Growers’ September 24, 2026 summary.
Wording note: An FLC bond under Labor Code § 1684 is a license (commercial) surety — a condition of holding the FLC license. It is not a construction performance or payment bond. Keep that product category clear in desk and client education.
Chaptered text requires the new amounts when an FLC first registers or files the application for their first annual renewal. Western Growers states the higher amount applies at first registration or first annual renewal after the law takes effect, with the doubled schedule beginning January 1, 2027.
Pending: How each FLC’s renewal anniversary lines up with Jan. 1, 2027 on the Labor Commissioner’s live licensing calendar. Do not invent a single statewide renewal date.
Payroll documentation rules (EDD, Franchise Tax Board, workers’ compensation sources, IRS, and related options listed in statute) remain. So does the rule that a final judgment at or above the required bond amount triggers deposit of an additional bond within 60 days.
The Labor Commissioner must publish bond details on the public FLC license database: bond number, effective and expiration dates, bond size, and surety company contact for active bonds for the previous five years. The commissioner must also tell any worker who files a claim against an FLC how to access the surety bond.
AB 2227 also applies the existing civil-penalty schedule under § 1683 to licensed FLCs for chapter violations unless another penalty is specified. Western Growers summarizes an initial citation at $100 per farmworker plus $100 per day, capped at $10,000, with higher tiers for repeats. That is enforcement education — not a premium forecast.
Western Growers advises FLCs to contact surety providers before the next renewal and budget for possible higher premiums or collateral, and advises growers to keep verifying that each FLC’s license and bond remain active. This post does not invent premium ranges, collateral percentages, AM Best ratings, or rankings.
AB 2227 is enacted (Ch. 294). California FLC license bonds double by annual payroll to $50,000 / $100,000 / $150,000, due at first registration or first annual renewal after the operative date (Jan. 1, 2027 per WGA and ordinary non-urgency timing). Public bond transparency expands. Verify live text before advising a specific renewal.
Verify at source / not legal advice. Summarized from dated public pages as of September 30, 2026 (PT). Confirm live before relying on any figure or filing requirement. Global Guarantors education content — not a solicitation and not a quote.