Whether you help manage the labor needs of a small farm or a large one, as a contractor you have responsibilities both to your employees and to the farms where your employees work. You need to ensure that your farm work is completed well and that your employees are safe and are paid promptly for work that they have completed.
A farm labor contractor bond is a type of surety bond. A surety bond is an agreement between three parties: the principal, the surety company, and the obligee.
As the contractor, you are called the principal. It is your responsibility to acquire a contractor bond to protect the obligee. The obligee is anyone who has a claim against the farm work contractor. This could include employees or those for whom the farm contractor arranges and completes projects.
Who Needs an Oregon Farm Labor Contractor Bond?
When you recruit, solicit, supply, or employ farm labor in Oregon, you must file an Oregon Farm Labor Contractor Bond toget and maintain your license.
Farm labor is more than working on a farm that produces food. This bond also includes those who contract to provide labor to harvest Christmas trees and those who manage reforestation contracts.
If you are in a position managing staff for a farm, you likely require a farm labor contractor bond.
How to get an Oregon Farm Labor Contractor Bond
To get a farm labor contractor bond, you need to work with a surety company underwriter. The underwriter will look at your business's financial history, including your credit rating. The surety company will also examine your business history and may ask for references. All of this data collection helps set your bond rate.
To get your farm labor contractor's license, you must provide a bond of at least $15,000. You don't need to post the full bond amount in order to get the bond. Instead, you will pay an amount that is based on your business and financial history and your credit rating. This percentage rate can run from 1 to 15 percent of the total bond amount.
When you're looking for a surety bond, visit Surety Solutions. We help you run a successful business by ensuring that you get the best quotes for your needs. Our OneClick system gives your quotes rapidly, so that you can get licensed and continue your work.