Fresno County asparagus harvest photo by Edward Smith

Last week, Sen. Shannon Grove (R-Bakersfield) introduced Senate Bill 628, which would create a tax credit for agricultural employers to help cover the costs of providing overtime wages to farmworkers.

Co-sponsored by the California Association of Winegrape Growers (CAWG) and the California Farm Bureau Federation, SB 628 aims to provide farmworkers with more opportunities to earn overtime pay while also providing relief to struggling agricultural businesses, according to a Farm Bureau news release.

The proposed bill would establish a payroll tax credit for agricultural employers to offset the cost of overtime wages paid to their employees.

It would also help increase available overtime hours for farm workers, increasing their take-home pay and supporting financial stability in rural regions of California, according to the release.

According to a 2023 study from the University of California, Berkeley, the state’s farmworkers have been earning less since the “Phase-In Overtime for Agricultural Workers Act of 2016” became law.

“California’s farmers and farmworkers are the backbone of our agricultural economy. Unfortunately, overtime mandates have made it harder for farmworkers to get the hours they need and for growers to get their product to market,” said 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.”

Grove’s bill follows other states that have passed similar overtime laws that recognize the unintended consequences of overtime laws, according to the release.

Oregon offers a refundable personal or corporate income tax credit for employers based on overtime wages paid to workers through 2028, with New York offering a similar credit through 2032.

California Farm Bureau President Shannon Douglass said that the agriculture industry is facing significant economic challenges.

“Research has shown that placing the burden of overtime wages on farmers came at the expense of both farming operations and the families of farm employees,” Douglass. “Senator Grove’s agricultural overtime tax credit bill is 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. It is an investment in our food security and rural communities and in the long-term sustainability of production agriculture in California.”