Farm advocates and farmworkers expressed disappointment after Senate Bill 628, a proposed tax credit aimed at enhancing farm employment and aiding California farms, was rejected by the Senate Labor, Public Employment and Retirement Committee. The bill, authored by state Sen. Shannon Grove, R-Bakersfield, was designed to offset overtime wage costs for farmers in response to the 2016 agricultural overtime law, Assembly Bill 1066, which mandated overtime pay for farmworkers.
While proponents of AB 1066 argued it would increase farmworker earnings, research indicates it has led to reduced income, with employers cutting hours to manage labor costs. A 2023 study revealed that by 2022, farmworkers had lost an average of five hours of work per week, translating to approximately $100 in lost income.
Testimony from Guadalupe Gonzalez, a crew leader with over a decade of experience in Napa Valley vineyards, highlighted the personal impact of these changes. She reported significant income loss due to reduced hours and rising expenses, including childcare. Gonzalez advocated for the tax credit as a means to improve her family’s financial situation.
Despite support from various agricultural groups and the California Farmworker Foundation, SB 628 faced opposition from labor unions, which argued it would shift the financial burden of payroll costs onto the general public. Critics like state Sen. Lola Smallwood-Cuevas, D-Los Angeles, suggested it might ignite demands for similar subsidies across other sectors.
Supporters of the bill emphasized its potential benefits for both struggling farms and vulnerable farmworkers. Grove described it as a commonsense solution, noting that other states have successfully implemented similar tax credits after extending overtime pay to farmworkers. As California’s agriculture sector grapples with rising costs and decreasing farm numbers, advocates remain committed to seeking solutions to the challenges posed by the overtime law.
