Senate Committee Rejects SB 628, Blocking Tax Credit Relief for Ag Overtime Wages

SACRAMENTO, April 23, 2024 – Today, with a party-line vote, the Senate Committee on Labor, Public Employment and Retirement defeated SB 628 (Grove, R-Bakersfield). This bill was co-sponsored by the California Association of Winegrape Growers (CAWG) and would have created a tax credit to help agricultural employers cover the cost of overtime wages paid to farm workers.

“It is disappointing that the California State Senate failed to show the same bipartisan leadership we’ve seen in New York and Oregon,” said Natalie Collins, President of CAWG. “SB 628 would have provided a dollar-for-dollar tax credit on overtime wages paid to farmworkers, delivering targeted relief for growers, supporting workers, and strengthening the rural communities that rely on a strong agricultural economy. This isn’t an untested idea; it’s a proven, common-sense solution. We urge the California Legislature to reconsider this legislation as soon as possible.”

Mountains of research and data show that agricultural employees have experienced a decline in their take-home pay since California’s ag overtime law took effect. The reality is that most growers simply cannot afford to pay overtime wages, and as a result, available overtime hours have been significantly reduced.

According to a 2023 study by the University of California, Berkeley, California farm workers have made 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.”

In September 2024, Governor Gavin Newsom stated, “Farmworkers are the backbone of California’s nation-leading agricultural industry and play a critical role in ensuring the stability of the state, nation, and world’s food supply. Investing in their well-being is investing in California’s success.”

“CAWG co-sponsored SB 628 because we share the Governor’s belief that supporting farmworkers is essential,” said Collins. “With California’s agricultural economy in steep decline, our workforce is feeling the strain. SB 628 was a modest, targeted fix that would have directly benefited those employees while offering stability for the growers who employ them. Finding solutions that support both growers and the agricultural workforce will remain one of CAWG’s highest priorities.”

Conversely, in opposing SB 628, the California Labor Federation stated, “At a time when the California legislature is debating how to allocate tax dollars to fund all the state’s priorities in education, housing, health and human services, infrastructure, energy, etc., this proposal is additionally harmful.”

Collins added, “This bill was never about choosing between priorities like education or infrastructure. It’s about recognizing that investing in agriculture and the people behind it is an investment in California’s long-term stability and resilience.

While we’re disappointed by the outcome, we are deeply grateful to Senator Shannon Grove for her leadership in authoring this legislation and to our co-sponsor, the California Farm Bureau, for their shared commitment and partnership. We also thank Senator Melissa Hurtado for her support of this bill and extend our sincere appreciation to the 35 farmworkers who took time out of their day to stand in support of SB 628.

Source: Wine Industry Advisor