This chapter shall apply only to “nonagricultural workers” as defined by Section 1101(a)(15)(H)(ii)(b) of Title 8 of the federal Immigration and Nationality Act. It shall not apply to any person duly licensed as a “farm labor contractor” as that term is defined in Section 1682 of the Labor Code nor shall it apply to any person exempt from the licensing requirement in Section 1682.5 of the Labor Code or to any employer employing agricultural workers as defined by Section 1101(a)(15)(H)(ii)(a) of Title 8 of the federal Immigration and Nationality Act.
Chapter 21.5Foreign Labor Contractors
Section § 9998
This law section only pertains to nonagricultural workers, based on a specific federal definition. It doesn't apply to licensed farm labor contractors, people who don't need a license under certain conditions, or employers who hire agricultural workers, according to their federal definition.
nonagricultural workers farm labor contractor Section 1101(a)(15)(H)(ii)(b) Title 8 federal Immigration and Nationality Act licensed exemption Section 1682 Labor Code agricultural workers Section 1682.5 employment exemption
Section § 9998.1
This section outlines definitions for terms related to foreign labor contracting in California. It specifies that 'person' includes individuals and businesses. 'Foreign labor contracting activity' involves recruiting foreign workers from abroad to work in California, but doesn't include employers finding workers for themselves. 'Foreign worker' refers to non-citizens authorized to work in the U.S., including certain temporary non-agricultural workers. A 'foreign labor contractor' is anyone engaged in foreign labor contracting, excluding government entities, licensed talent agencies, and certain State Department designated individuals.
The following definitions are applicable to this chapter:
(a)CA Business and Professions Code § 9998.1(a) “Person” includes any natural person, company, firm, partnership or joint venture, association, corporation, limited liability company, or sole proprietorship.
(b)CA Business and Professions Code § 9998.1(b) “Foreign labor contracting activity” means recruiting or soliciting for compensation a foreign worker who resides outside of the United States in furtherance of that worker’s employment in California, including when that activity occurs wholly outside the United States. “Foreign labor contracting activity” does not include the services of an employer, or employee of an employer, if those services are provided directly
to foreign workers solely to find workers for the employer’s own use.
(c)CA Business and Professions Code § 9998.1(c) “Foreign worker” means any person seeking employment who is not a United States citizen or permanent resident but who is authorized by the federal government to work in the United States, including a person who engages in temporary nonagricultural labor pursuant to Section 101(a)(15)(H)(ii)(b) of the federal Immigration and Nationality Act (8 U.S.C. Sec. 1101(a)(15)(H)(ii)(b)).
(d)CA Business and Professions Code § 9998.1(d) “Foreign labor contractor” means any person who performs foreign labor contracting activity, including any person who performs foreign labor contracting activity wholly outside the United States, except that the term does not include any entity of federal, state, or local government. “Foreign labor contractor” does not include a person licensed by the Labor Commissioner as a talent agency under Chapter 4 (commencing with Section
1700) of Part 6 of Division 2 of the Labor Code, or a person who obtained and maintains full written designation from the United States Department of State under Part 62 of Title 22 of the Code of Federal Regulations.
foreign labor contractor foreign labor contracting activity foreign worker recruiting foreign workers temporary nonagricultural labor federal Immigration and Nationality Act employment in California federal work authorization talent agency Labor Commissioner license U.S. Department of State designation employment solicitation natural person limited liability company partnership or joint venture
Section § 9998.10
This section allows the Labor Commissioner and their authorized team to take over legal claims related to certain bonds on behalf of people who can't afford a lawyer. They can pursue these claims in a way similar to how they handle other labor-related claims.
The Labor Commissioner and the deputies and representatives authorized by the commissioner in writing may take assignments of actions on the bonds required under Section 9998.1.5 by aggrieved persons and may prosecute the actions on behalf of persons who, in the judgment of the commissioner, are financially unable to employ counsel, in the same manner that claims are prosecuted under Section 98 of the Labor Code.
Labor Commissioner bond actions financially unable legal representation aggrieved persons Labor Code Section 98 assignment of actions prosecute claims written authorization representation by commissioner bonds under Section 9998.1.5
Section § 9998.11
This law allows the Labor Commissioner the authority to create rules and guidelines to put the chapter's requirements into action.
The Labor Commissioner may adopt regulations or policies and procedures to implement the provisions of this chapter.
Labor Commissioner regulations policies procedures implementation adopt rules guidelines chapter provisions authority enforcement labor policies procedural guidelines administrative authority rule-making power labor chapter implementation
Section § 9998.2
This law requires individuals or businesses using foreign labor contractors to report this to the Labor Commissioner starting from July 1, 2016. The required disclosure must include contact information of the person dealing with the contractor and a consent declaration for the Labor Commissioner to accept legal documents on behalf of the employer if they cannot be reached. Moreover, only registered contractors can be used for such services.
(a)CA Business and Professions Code § 9998.2(a) On and after July 1, 2016, a person who knows or should have known that the person is using the services of a foreign labor contractor to procure foreign workers or employees pursuant to subdivision (b) of Section 9998.1 shall disclose this information to the Labor Commissioner in accordance with the terms and procedures established by the commissioner by January 1, 2016.
(b)CA Business and Professions Code § 9998.2(b) The disclosure shall include, but is not limited to, the following:
(1)CA Business and Professions Code § 9998.2(b)(1) The name, address, and contact information of the person designated by the employer to work with a foreign labor contractor.
(2)CA Business and Professions Code § 9998.2(b)(2) A declaration consenting to the designation by a court of the commissioner as an agent available to accept service of summons in any action against the person, if the person has left the jurisdiction in which the action is commenced or otherwise has become unavailable to accept service.
(c)CA Business and Professions Code § 9998.2(c) A person may not knowingly enter into an agreement for the services of a foreign labor contractor that is not registered under this chapter.
foreign labor contractor Labor Commissioner disclosure procure foreign workers service of summons designated contact person jurisdiction registered contractor July 1 2016 declaration consent employee recruitment
Section § 9998.3
This law states that foreign labor contractors are not allowed to make or share any false or misleading information about job terms or conditions. They must be honest about what the job involves to anyone considering the employment opportunity.
No foreign labor contractor shall make, publish, or circulate or cause to be made, published, or circulated, to any person any false, fraudulent, or misleading representation or information concerning the terms or conditions of employment at any place or places of employment.
foreign labor contractor false information misleading representation employment terms employment conditions job advertisement fraudulent representation circulate information publish misleading information worker recruitment honest job description employment opportunity
Section § 9998.4
This law says that foreign labor contractors are not allowed to hire or help hire minors who are foreign workers.
No foreign labor contractor shall recruit for employment or cause any minor who is a foreign worker to be employed.
foreign labor contractor recruitment employment minor foreign worker hiring restrictions labor laws child labor contractor prohibition employment recruitment
Section § 9998.5
If a foreign labor contractor recruits or encourages a worker to go to a job site without a real job offer and then doesn't provide a job, the contractor must compensate the worker. This includes paying them the promised wages for the time spent traveling from recruitment to the job site and back, as well as covering their travel expenses.
Any foreign labor contractor who recruits or solicits without a bona fide job order and who induces a foreign worker to be transported to a proposed jobsite and who does not then provide employment for the foreign worker shall pay wages to the foreign worker at the agreed rate of pay for the job to which the foreign worker was being transported and for the elapsed time from the point of recruitment to the jobsite to the point the worker returns to the place of original departure, and for any transportation costs incurred by the foreign worker in connection with the pursuit of the labor contractor’s services.
foreign labor contractor bona fide job order employment inducement foreign worker compensation agreed rate of pay transportation costs jobsite recruitment wage payment obligations travel expenses reimbursement recruitment to jobsite return to original departure
Section § 9998.6
This law makes it illegal to mistreat or discriminate against foreign workers or their family members if they exercise their legal rights. Such mistreatment includes threats, firing them, or any form of intimidation.
A person may not intimidate, threaten, restrain, coerce, discharge, or in any manner discriminate against a foreign worker or a member of his or her family in retaliation for the foreign worker’s exercise of any right under this chapter.
foreign worker rights intimidation threaten coerce discharge discriminate retaliation family members worker protection employment rights legal rights exercise worker mistreatment rights enforcement non-discrimination employment retaliation
Section § 9998.7
This law forbids foreign labor contractors from convincing foreign workers to travel or accept job offers by falsely promising them U.S. citizenship or permanent residency.
No foreign labor contractor shall make promises or otherwise induce a foreign worker to travel or accept promises of employment by promising or providing assurances to the foreign worker that citizenship or permanent residency status in the United States shall be secured or pursued if the worker accepts the offer of services of the foreign labor contractor.
foreign labor contractors inducement promises of employment false assurances U.S. citizenship permanent residency worker protection employment offer travel inducement work visa exploitation immigrant rights employment deception immigration status promises recruitment practices fraud prevention
Section § 9998.8
If you violate this chapter, you can face a misdemeanor charge with penalties up to a $1,000 fine, six months in jail, or both. Civil penalties for violations range from $1,000 to $25,000, and additional actions can be taken by the Labor Commissioner or affected individuals. These actions include suing for injunctions, damages, and recovering legal fees. However, if a foreign labor contractor you employ was properly registered, you're not responsible for their violations. The law keeps any other rights or remedies you might have through other laws intact.
(a)CA Business and Professions Code § 9998.8(a) A person who violates this chapter or who causes or induces another to violate this chapter is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000), or imprisonment in the county jail for not more than six months, or both. A person shall not be liable under this subdivision for any act or omission by a foreign labor contractor engaged by the person if the foreign labor contractor was registered with the Labor Commissioner pursuant to Section 9998.1.5 no later than the first day of engagement.
(b)CA Business and Professions Code § 9998.8(b) A person who violates any provision of this chapter shall be subject to a civil penalty of no less than one thousand dollars ($1,000) and no more
than twenty-five thousand dollars ($25,000) per violation, in addition to any other civil remedies available to the Labor Commissioner or an aggrieved person.
(c)CA Business and Professions Code § 9998.8(c) The commissioner or a person aggrieved by a violation of this chapter may do all of the following:
(1)CA Business and Professions Code § 9998.8(c)(1) Bring an action for injunctive relief against a person who violates this chapter and, upon prevailing, recover costs and reasonable attorney’s fees.
(2)CA Business and Professions Code § 9998.8(c)(2) Bring an action for damages, against a person who violates this chapter to recover the greater of all of his or her actual damages or five hundred dollars ($500) per employee per violation for an initial violation, and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, recover costs and reasonable attorney’s
fees.
(3)CA Business and Professions Code § 9998.8(c)(3) Enforce the liability on the bonds required under Section 9998.1.5.
(d)CA Business and Professions Code § 9998.8(d) A person shall not be jointly and severally liable for any act or omission by a foreign labor contractor engaged by the person if the foreign labor contractor was registered with the Labor Commissioner pursuant to Section 9998.1.5 no later than the first day of engagement.
(e)CA Business and Professions Code § 9998.8(e) Nothing in this section shall be construed to preempt or alter any other rights or remedies, including any causes of action, available under any other federal or state law.
misdemeanor civil penalties foreign labor contractor Labor Commissioner injunctive relief damages actual damages registered contractor liability bond enforcement aggrieved person legal fees joint liability remedies state law rights
Section § 9998.1.5
If you want to work as a foreign labor contractor in California starting July 1, 2016, you need to register with the Labor Commissioner. This involves filling out a detailed application, proving your good character, and posting a surety bond based on your earnings. The bond ensures you comply with the law and cover any damages from violations. You also have to pay a registration fee. The Labor Commissioner won't register you if you've violated certain laws, like human trafficking statutes. Additionally, information about registered and denied contractors is available online.
(a)CA Business and Professions Code § 9998.1.5(a) On and after July 1, 2016, a person acting as a foreign labor contractor shall register with the Labor Commissioner in accordance with the terms and procedures for registration established by the commissioner by January 1, 2016. On and after August 1, 2016, the commissioner shall post on its Internet Web site the names and contact information for all registered foreign labor contractors and a list of the names and contact information for any foreign labor contractors denied renewal or registration.
(b)CA Business and Professions Code § 9998.1.5(b) The Labor Commissioner may not register a person to act as a foreign labor contractor, and may not renew a registration, until all of
the following conditions are satisfied:
(1)CA Business and Professions Code § 9998.1.5(b)(1) The person has executed a written application in a form prescribed by the commissioner, subscribed and sworn to by the person, and containing all of the following:
(A)CA Business and Professions Code § 9998.1.5(b)(1)(A) A statement by the person of all facts required by the commissioner concerning the applicant’s character, competency, responsibility, and the manner and means by which the person proposes to conduct operations as a foreign labor contractor if registered.
(B)CA Business and Professions Code § 9998.1.5(b)(1)(B) The names and addresses of all persons, except bona fide employees on stated salaries, financially interested, either as partners, associates, or profit sharers, in the proposed operation as a foreign labor contractor, together with the amount of their respective interests.
(C)CA Business and Professions Code § 9998.1.5(b)(1)(C) A declaration consenting to the designation by a court or the commissioner as an agent available to accept service of summons in any action against the registrant, if the registrant has left the jurisdiction in which the action is commenced or otherwise has become unavailable to accept service.
(2)CA Business and Professions Code § 9998.1.5(b)(2) The commissioner, after investigation, is satisfied as to the character, competency, and responsibility of the person.
(3)Copy CA Business and Professions Code § 9998.1.5(b)(3)
(A)Copy CA Business and Professions Code § 9998.1.5(b)(3)(A) The person has deposited with the commissioner a surety bond in an amount based on the size of the person’s annual gross receipts from operations as a foreign labor contractor, as follows:
(i)CA Business and Professions Code § 9998.1.5(b)(3)(A)(i) For gross receipts up to five hundred thousand dollars ($500,000), a fifty-thousand-dollar ($50,000) bond.
(ii)CA Business and Professions Code § 9998.1.5(b)(3)(A)(ii) For gross receipts of five hundred thousand dollars ($500,000) to two million dollars ($2,000,000), a one-hundred-thousand-dollar ($100,000) bond.
(iii)CA Business and Professions Code § 9998.1.5(b)(3)(A)(iii) For gross receipts greater than two million dollars ($2,000,000), a one-hundred-fifty-thousand-dollar ($150,000) bond.
(B)CA Business and Professions Code § 9998.1.5(b)(3)(A)(B) If the foreign labor contractor has been the subject of a final judgment in a year in an amount equal to that of the bond required, that contractor shall be required to deposit an additional bond within 60 days. The bond shall be payable to the people of the State of California and shall be conditioned on the foreign labor contractor complying with all the terms and provisions of this chapter and paying all damages occasioned to any person by failure to do so, or by any violation of this chapter, or false statements or misrepresentations made
in the registration process. The bond shall also be payable for interest on wages and for any damages arising from violation of applicable orders of the Industrial Welfare Commission, and for any other monetary relief awarded to a foreign worker as a result of a violation of law by the foreign labor contractor.
(4)CA Business and Professions Code § 9998.1.5(b)(4) The person has paid to the commissioner a registration fee and a filing fee in a total amount the commissioner determines is sufficient to support the ongoing costs of the program.
(c)CA Business and Professions Code § 9998.1.5(c) The commissioner may not register a person as a foreign labor contractor, if the person was found by a court, the Secretary of Labor, or the commissioner to have violated any of the following provisions:
(1)CA Business and Professions Code § 9998.1.5(c)(1) The federal Trafficking Victims Protection Act of 2000
(Division A, Public Law 106-386), as amended.
(2)CA Business and Professions Code § 9998.1.5(c)(2) Sections 1682 to 1699, inclusive, of the Labor Code.
(3)CA Business and Professions Code § 9998.1.5(c)(3) Section 236.1 of the Penal Code.
(4)CA Business and Professions Code § 9998.1.5(c)(4) An applicable guest worker program.
foreign labor contractor Labor Commissioner registration surety bond gross receipts application process character competency responsibility Trafficking Victims Protection Act guest worker program surety bond amounts final judgment Industrial Welfare Commission registration denial online registry
Section § 9998.2.5
This law requires foreign labor contractors to give clear, written information to foreign workers they're recruiting. Workers must be informed about the identity of their future employer, details of their work contract, the type and rules of their visa, and any costs they'll incur. Contractors cannot charge fees like visa or processing fees to the workers. Any changes to contract terms must be communicated at least 48 hours in advance, and workers must agree without any pressure. Disclosure statements must also highlight the worker's rights and resources for assistance, including those against trafficking.
(a)CA Business and Professions Code § 9998.2.5(a) A foreign labor contractor shall ascertain and disclose in writing to each foreign worker who is recruited for employment in English and in the primary language of the foreign worker being recruited, at the time of the foreign worker’s recruitment, the following information:
(1)CA Business and Professions Code § 9998.2.5(a)(1) The identity of the employer and the identity of the person conducting the recruiting on behalf of the employer, including any subcontractor or agent involved in the recruiting.
(2)CA Business and Professions Code § 9998.2.5(a)(2) A signed copy of the work contract, including all assurances and terms and conditions of employment, from the prospective employer for whom the foreign worker is being recruited,
including the compensation to be paid, the place and period of employment, a description of the type and nature of employment activities, any withholdings or deductions from compensation, and any penalties for terminating employment.
(3)CA Business and Professions Code § 9998.2.5(a)(3) The type of visa under which the foreign worker is to be employed, the length of time the visa is valid, and the terms and conditions under which the visa will be renewed with a clear statement of whether the employer will secure renewal of the visa or if renewal must be obtained by the foreign worker, and any expenses associated with securing or renewing the visa.
(4)CA Business and Professions Code § 9998.2.5(a)(4) An itemized list of any costs or expenses to be charged to the foreign worker, including, but not limited to, the costs of housing or accommodation, transportation to and from the worksite, meals, medical examinations, health care or safety equipment costs, and any other costs,
expenses, or deductions to be charged the foreign worker.
(5)CA Business and Professions Code § 9998.2.5(a)(5) A statement, in a form specified by the Labor Commissioner, that does each of the following:
(A)CA Business and Professions Code § 9998.2.5(a)(5)(A) States that no foreign labor contractor, or agent or employee of a foreign labor contractor, can lawfully assess any fee, including visa fees, processing fees, transportation fees, legal expenses, placement fees, and other costs to a foreign worker for foreign labor contracting activities, and that the employer may bear the costs or fees for the foreign labor contractor, but that these fees cannot be assessed to the foreign worker.
(B)CA Business and Professions Code § 9998.2.5(a)(5)(B) Explains that no additional requirements or changes may be made to the terms of the contract originally provided by the foreign labor contractor and signed by the foreign worker, unless the foreign worker is provided at least 48
hours to review and consider the additional requirements or changes and the foreign worker gives specific consent, voluntarily and without threat of penalty, to each additional requirement or change.
(C)CA Business and Professions Code § 9998.2.5(a)(5)(C) Describes the protections afforded the foreign worker by this chapter and by the federal Trafficking Victims Protection Act of 2000 (Division A, Public Law 106-386), as amended, and any applicable guest worker program, including relevant information about the procedure for filing a complaint under this chapter, and the telephone number for the national human trafficking resource center hotline.
(6)CA Business and Professions Code § 9998.2.5(a)(6) Any education or training to be provided or required, including the nature, timing, and cost of training and the person who will pay training costs, whether the training is a condition of employment, continued employment, or future employment, and whether the foreign worker will be paid
or remunerated during the training period, including the rate of pay or remuneration.
(b)CA Business and Professions Code § 9998.2.5(b) The foreign labor contractor shall file the disclosure required under subdivision (a) with the Labor Commissioner within seven business days of providing it to the foreign worker.
(c)CA Business and Professions Code § 9998.2.5(c) A foreign labor contractor, or the agent, subcontractor, or employee of a foreign labor contractor, or a person using the services of a foreign labor contractor to obtain foreign workers or employees, may not assess any fee, including, but not limited to, visa fees, processing fees, transportation fees, legal expenses, placement fees, and other costs, to a foreign worker for foreign labor contracting activities.
(d)CA Business and Professions Code § 9998.2.5(d) A foreign worker may not be required to pay any costs or expenses that are not customarily assessed against
all workers similarly employed in the United States. No costs or expenses shall be required to be paid by the foreign worker prior to the commencement of work. The amount charged for providing housing to the foreign worker shall be limited to market rate for similar housing.
(e)CA Business and Professions Code § 9998.2.5(e) Additional requirements or changes shall not be made to the terms of the contract originally provided by the foreign labor contractor and signed by the foreign worker, unless the foreign worker is provided at least 48 hours to review and consider the additional requirements or changes and the foreign worker gives specific consent, voluntarily and without threat of penalty, to each additional requirement or change.
foreign labor contractor foreign worker recruitment employment terms disclosure work contract details visa type visa renewal conditions prohibited fees itemized costs worker consent trafficking protections filing complaints Labor Commissioner housing costs training costs national human trafficking hotline
