DIR Alerts Agricultural Employers to Expanded Foreign Labor Contractor Registration Requirements

The California Department of Industrial Relations has issued an October 29 notice reminding agricultural employers and labor contractors that AB 1362 expands California's Foreign Labor Contractor (FnLC) registration program to H-2A recruitment beginning July 1, 2027. The program currently covers recruitment under the H-2B visa program. Under the expansion, farm labor contractors that perform covered foreign recruitment activities must obtain separate FnLC registration, even if they already hold a California farm labor contractor license.

The law covers people and businesses that recruit or solicit, for compensation, workers residing outside the United States for employment in California. It applies even when the recruitment takes place entirely abroad. DIR's notice describes covered activities broadly, including screening applicants, arranging consular appointments, referring workers to employers, and coordinating transportation to obtain or accept employment.

An employer or its employee recruiting directly and solely for the employer's own workforce remains excluded from the definition of foreign labor contracting activity. But an employer that uses an outside recruiter has obligations under the law, even if the employer does not need to register as a foreign labor contractor itself.

What employers need to know

The principal requirements include the following:

• Registration and bonding. Covered contractors must submit an application, pay applicable fees, and satisfy registration requirements, including a surety bond ranging from $50,000 to $150,000 based on annual gross receipts from foreign labor contracting operations. A farm labor contractor license alone will not satisfy the separate registration requirement.

• Worker disclosures. At recruitment, contractors must provide written disclosures in English and the worker's primary language using DLSE Form 703. These include the identities of the employer and recruiter, any recruiting agents or subcontractors, a signed work contract, visa information, and an itemized statement of costs or expenses. Recruitment fees cannot be charged to workers.

• Employer disclosures and verification. Employers using covered recruiters must disclose that relationship to the Labor Commissioner using DLSE Form 704. The law prohibits knowingly entering into an agreement with an unregistered foreign labor contractor. DIR maintains an online registration database employers can use to verify registration.

Violations can result in civil penalties of $1,000 to $25,000 per violation, damages, attorney's fees, and potential misdemeanor liability.

Agricultural employers should review their H-2A recruiting arrangements now, identify who performs recruitment abroad, and confirm that covered providers will have valid FnLC registration when the expansion takes effect. DIR's notice directs applicants to complete registration before July 1, 2027, and states that an online application will be available before that date.

Employers should also prepare to submit their own required disclosures and retain documentation verifying their recruiters' registration. Application materials and updates are available on DIR's Foreign Labor Contractors webpage.