A $6.2 million California paid sick leave settlement is prompting a closer look at how paid sick leave notices, payroll practices, and labor costs connect.
The agreement closes out claims tied to labor practices during the height of the pandemic, when large agricultural employers were managing housing, transportation, and payroll for thousands of workers at once. The scope of the settlement reflects both the size of the workforce involved and the length of time the practices were under review.
California reached the seven-figure settlement to resolve widespread wage-and-hour violations that affected more than 10,000 farmworkers, including H-2A workers living in employer-provided housing.
The settlement stems from findings that required paid sick leave notices were not provided and that some compensable work time went unpaid.
In the view of the California Labor Commissioner’s Office, the violations left farmworkers without access to paid sick leave and shorted them on wages they were legally owed. The settlement requires payment of back wages, paid sick leave damages, and civil penalties tied to violations that occurred during the COVID-19 pandemic.
Alco Harvesting LLC, dba Bonipak Produce Inc., agreed to pay $6.175 million, with $4.2 million going directly to affected farmworkers and another $1.5 million tied to paid sick leave and minimum wage violations. The remaining funds will be used to cover:
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