Background
In passing AB 1066 (Gonzalez) in 2016, the Legislature intended “to provide any person employed in an agricultural occupation in California . . . with an opportunity to earn overtime compensation under the same standards as millions of other Californians.” But, according to a 2023 study by the University of California at Berkeley, California, farmworkers have earned less money since the “Phase-In Overtime for Agricultural Workers Act of 2016” became law. The study concluded, “This early evidence suggests that the law may not be benefiting the workers they aim to protect.”
UC Berkeley's Agricultural and Resource Economics Department study revealed that instead of seeing increased pay, many farmworkers experienced reduced hours—and consequently, reduced income.
California is not unique in this problem. To address this, other states have already acted to help agricultural employees earn more overtime. Oregon created a refundable personal or corporate income tax credit for employers based on wages paid as overtime pay to agricultural workers for calendar years 2023 through 2028. Additionally, New York created a tax credit through 2032 based on the eligible overtime agricultural businesses pay.