Senator Shannon Grove of Bakersfield has introduced a new bill, SB 628, aimed at creating a tax credit for agricultural employers. This legislation seeks to assist these employers in covering the costs associated with providing overtime wages to farmworkers. The bill is co-sponsored by the California Association of Winegrape Growers (CAWG) and the California Farm Bureau.
“California’s farmers and farmworkers are the backbone of our agricultural economy,” said Senator Grove. “SB 628 is a commonsense solution that ensures farmworkers have more opportunities to earn while providing relief to our agricultural businesses who sustain the world’s food chain supply.”
The proposed legislation intends to establish a payroll tax credit allowing agricultural employers to offset overtime wage costs. It also aims to increase available overtime hours for farmworkers, thereby boosting their take-home pay and supporting financial stability in rural areas.
Natalie Collins, President of CAWG, highlighted concerns from growers about reduced earnings for farmworkers since the implementation of AB 1066 in 2016. “If legislators genuinely want to increase take-home pay for farmworkers, growers are going to need support from Sacramento,” she stated.
Shannon Douglass, President of the California Farm Bureau, emphasized the economic challenges faced by agriculture. She described SB 628 as “a sensible solution that will enable farmers to continue producing food while providing a real and richly deserved boost in take-home pay for farm employees.”
Research from UC Berkeley supports these concerns. A study found that since the “Phase-In Overtime for Agricultural Workers Act of 2016” became law, farmworker earnings have decreased. The study concluded that this law might not be benefiting workers as intended.
SB 628 aligns with actions taken by other states like Oregon and New York, which offer tax credits based on overtime wages paid to agricultural workers.
Together with CAWG and the California Farm Bureau, Senator Grove advocates for policies that enhance farmworker earnings without inadvertently reducing wages due to financial pressures on employers.
