Issue link: https://read.dmtmag.com/i/681909
10 JUNE 2016 GOOD FRUIT GROWER www.goodfruit.com After recent court ruling, more growers will need farm labor contractor licenses even for workers they don't directly hire. by Ross Courtney A n attorney who frequently represents the fruit industry is warning growers to double-check Washington's farm labor contractor rules before putting to work anybody they did not directly hire themselves. A March decision by the Washington Supreme Court has broadened the defi nition of farm labor contractor beyond what growers previously believed, said Sarah Wixson, a lawyer and shareholder with Stokes Lawrence Velikanje Moore & Shore in Yakima, Washington. "I think quite a few people are still getting it wrong and the financial consequences can be dire," Wixson said in an email to the Good Fruit Grower. Violations could mean a fine of up to $5,000 or legal damages of $500 per person per violation dating back three years. On March 3, the Supreme Court ruled 9-0 that an on-site farm management company was indeed required to have a farm labor contractor license from Washington and upheld an earlier $1 million judgment against the fi rm for lacking one. The companies the management fi rm worked for were also on the hook. For 20 years, NW Management and Realty Services of Pasco, Washington, was hired by Farmland Management Services, a California fi rm, to operate three Yakima area orchards. Farmland, in turn, was hired by property own- ers John Hancock Life and Health Insurance Company and Texas Municipal Plans Consortium. As part of their contract with Farmland, NW Management supervisors hired workers. The court agreed that constituted hiring for a "fee" and therefore required a farm labor contractor license, which the com- pany did not obtain. The company has since closed, Wixson said. The issue fi rst came up in a U.S. District Court law- suit alleging worker abuse that was settled, but the license question was appealed to the 9th Circuit Court of Appeals, which certifi ed it to the state Supreme Court on Aug. 5 last year. In the wake of the decision, Wixson and the plaintiff's attorney, Lori Isley, warn that straight payroll reimburse- ment or something small such as allowing a driver to fi ll up a gas tank at the farm may be interpreted as a "fee" under state law. "I would say both of those entities should be cautious about what they're doing," said Isley, an attorney with Columbia Legal Service's Yakima offi ce. Meanwhile, many orchard families build corporate structures with several different LLCs that each own different properties for purposes of irrigation and insurance. In those cases, they may require a license to simply move workers from place to place, Wixson said. Wixson advises growers to carefully review the state's Labor and Industries website that spells out the license rules, something her firm started preaching years ago, she said. The message may be getting out, said Matthew Erhlich, a spokesman for the state Department of Labor and Industries, which oversees farm labor contractor's licenses. In the fi rst four months this year, the department has issued 169 annual licenses and expects to reach 500 licenses by the end of the year. In all of 2015, the agency issued 166 licenses — at the time the most ever — and 147 licenses in 2014. Licenses cost $35, plus a requirement to post a bond of between $5,000 to $20,000 depending on the number of employees. The department, which has a labor contractor inspec- tion team, has increased the number of audits over the past few years, from 20 in 2014 to 29 last year to 21 the fi rst three months of 2016. State regulators never tagged NW Management because they never received a complaint, Ehrlich said. That proves that even reputable companies need to tread carefully, Wixson said. "NW Management was a well-known, well-estab- lished farm management company," she said. • Check up on farm labor rules ONLINE To review the Farm Labor Contractor license regulations, visit 1.usa.gov/1pXwyLR In the �irst four months this year, the Washington Department of Labor and Industries has issued 169 annual licenses and expects to reach 500 licenses by the end of the year. In all of 2015, the agency issued 166 licenses. ORSat™ is a custom designed satellite communication network and service for managing, operation and monitoring of wind machines. ORSat™ allows growers to monitor and control wind machines, fuel tanks, and weather stations with just a few simple steps, via an Internet enabled device, and is the only solution available that integrates with the Orchard-Rite® Auto-Start. 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