SB-628
Agriculture & Food

Employment: employer contributions: employee withholdings: credit: agricultural employees.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Establishes a new tax credit for agricultural employers who pay overtime wages to farmworkers.
  • Allows employers to claim credits equal to overtime wages paid, up to their quarterly withholding amount.
  • Maintains existing tax withholding requirements for both employers and employees.
  • Authorizes the Employment Development Department to create rules for implementing the credit system.

Summary

Senator Grove's agricultural overtime wage credit proposal would allow California farm employers to claim tax credits against their employee withholdings for overtime wages paid to agricultural workers. Under the measure, employers covered by Industrial Welfare Commission Wage Order 14-2001 could receive credits equal to the difference between overtime and regular wage rates paid each quarter, capped at their total employee withholding amounts.

The bill establishes specific mechanisms for claiming the credits through employers' existing quarterly contribution reports or electronic funds transfers to the Employment Development Department (EDD). While modifying the remittance process, the measure maintains current tax withholding requirements and employee tax liability levels. The legislation authorizes EDD to develop implementing regulations and defines key terms including overtime wages and employee categories.

According to the bill's findings, the credit aims to address economic pressures facing California agriculture, including drought impacts, land value changes, and industry-specific challenges documented in federal agricultural census data. The authors note that similar overtime support programs exist in Oregon and New York, and cite University of California research on agricultural overtime impacts. The measure follows Governor Newsom's 2024 statement emphasizing investment in farmworker well-being as critical to California's agricultural success.

Key Dates

Next Step
Referred to the Senate Standing Committee on Labor, Public Employment and Retirement
Next Step
Senate Committee
Referred to the Senate Standing Committee on Labor, Public Employment and Retirement
Hearing has not been scheduled yet
Senate Labor, Public Employment and Retirement Hearing
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
[First] hearing set for [04-23-2025]: Failed passage in Committee. Reconsideration granted
Senate Labor, Public Employment and Retirement Hearing
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Shannon GroveR
Senator
Bill Author
Not Contacted
Not Contacted
Profile
James GallagherR
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Maria DurazoD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Dave CorteseD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
John LairdD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 10 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Shannon GroveR
Senator
Bill Author
Profile
James GallagherR
Assemblymember
Bill Author
Profile
Maria DurazoD
Senator
Committee Member
Profile
Dave CorteseD
Senator
Committee Member
Profile
John LairdD
Senator
Committee Member
Profile
Juan AlanisR
Assemblymember
Bill Author
Profile
Josh HooverR
Assemblymember
Bill Author
Profile
Lola Smallwood-CuevasD
Senator
Committee Member
Profile
Jeff GonzalezR
Assemblymember
Bill Author
Profile
Alexandra MacedoR
Assemblymember
Bill Author

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Shannon Grove
Shannon GroveR
California State Senator
Co-Authors
Alexandra Macedo
Alexandra MacedoR
California State Assembly Member
Jeff Gonzalez
Jeff GonzalezR
California State Assembly Member
Josh Hoover
Josh HooverR
California State Assembly Member
James Gallagher
James GallagherR
California State Assembly Member
Juan Alanis
Juan AlanisR
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

Latest Voting History

April 23, 2025
PASS
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
AyesNoesNVRTotalResult
5005PASS

Key Takeaways

  • Establishes a new tax credit for agricultural employers who pay overtime wages to farmworkers.
  • Allows employers to claim credits equal to overtime wages paid, up to their quarterly withholding amount.
  • Maintains existing tax withholding requirements for both employers and employees.
  • Authorizes the Employment Development Department to create rules for implementing the credit system.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Shannon Grove
Shannon GroveR
California State Senator
Co-Authors
Alexandra Macedo
Alexandra MacedoR
California State Assembly Member
Jeff Gonzalez
Jeff GonzalezR
California State Assembly Member
Josh Hoover
Josh HooverR
California State Assembly Member
James Gallagher
James GallagherR
California State Assembly Member
Juan Alanis
Juan AlanisR
California State Assembly Member

Summary

Senator Grove's agricultural overtime wage credit proposal would allow California farm employers to claim tax credits against their employee withholdings for overtime wages paid to agricultural workers. Under the measure, employers covered by Industrial Welfare Commission Wage Order 14-2001 could receive credits equal to the difference between overtime and regular wage rates paid each quarter, capped at their total employee withholding amounts.

The bill establishes specific mechanisms for claiming the credits through employers' existing quarterly contribution reports or electronic funds transfers to the Employment Development Department (EDD). While modifying the remittance process, the measure maintains current tax withholding requirements and employee tax liability levels. The legislation authorizes EDD to develop implementing regulations and defines key terms including overtime wages and employee categories.

According to the bill's findings, the credit aims to address economic pressures facing California agriculture, including drought impacts, land value changes, and industry-specific challenges documented in federal agricultural census data. The authors note that similar overtime support programs exist in Oregon and New York, and cite University of California research on agricultural overtime impacts. The measure follows Governor Newsom's 2024 statement emphasizing investment in farmworker well-being as critical to California's agricultural success.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

Key Dates

Next Step
Referred to the Senate Standing Committee on Labor, Public Employment and Retirement
Next Step
Senate Committee
Referred to the Senate Standing Committee on Labor, Public Employment and Retirement
Hearing has not been scheduled yet
Senate Labor, Public Employment and Retirement Hearing
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
[First] hearing set for [04-23-2025]: Failed passage in Committee. Reconsideration granted
Senate Labor, Public Employment and Retirement Hearing
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Latest Voting History

April 23, 2025
PASS
Senate Committee
Senate Labor, Public Employment and Retirement Hearing
AyesNoesNVRTotalResult
5005PASS

Contacts

Profile
Shannon GroveR
Senator
Bill Author
Not Contacted
Not Contacted
Profile
James GallagherR
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Maria DurazoD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Dave CorteseD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
John LairdD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 10 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Shannon GroveR
Senator
Bill Author
Profile
James GallagherR
Assemblymember
Bill Author
Profile
Maria DurazoD
Senator
Committee Member
Profile
Dave CorteseD
Senator
Committee Member
Profile
John LairdD
Senator
Committee Member
Profile
Juan AlanisR
Assemblymember
Bill Author
Profile
Josh HooverR
Assemblymember
Bill Author
Profile
Lola Smallwood-CuevasD
Senator
Committee Member
Profile
Jeff GonzalezR
Assemblymember
Bill Author
Profile
Alexandra MacedoR
Assemblymember
Bill Author