Oregon Statutes - Chapter 658 - Employment Agencies; Farm Labor Contractors; Farmworker Camps - Section 658.419 - Proof of financial responsibility from agricultural associations and certain nonprofit corporations; right of action; manner of payment; rules.

(1) Notwithstanding the provisions of ORS 658.415 (3), (4), (8), (9) and (16), an agricultural association or a private nonprofit corporation described in ORS 658.410 (2)(f)(B) shall submit with the application for a license to act as a farm labor contractor and shall continually maintain thereafter, until excused, a corporate surety bond of a company licensed to do such business in Oregon, a cash deposit or a deposit the equivalent of cash, in a form approved by and payable to the Commissioner of the Bureau of Labor and Industries, in the amount of $30,000.

(2) Any person who suffers any loss of wages from the employer of the person or any other loss due to activities of the agricultural association or the private nonprofit corporation as a farm labor contractor shall have a right of action against the surety upon the bond or against the deposit with the commissioner. The right of action is assignable and may not be included in any action against the agricultural association or the private nonprofit corporation but shall be exercised independently after first procuring adequate proof of liability as provided by the commissioner by rule.

(3) The surety company or the commissioner shall make prompt and periodic payments on the agricultural associationís or the private nonprofit corporationís liability up to the extent of the total sum of the bond or deposit. Payments shall be made in the following manner:

(a) Payment based upon priority of wage claims over other liabilities;

(b) Payment in full of all sums due to each person who presents adequate proof of the claim; and

(c) If there are insufficient funds to pay in full the person next entitled to payment in full, payment in part to the person. [1999 c.628 §4; 2001 c.178 §2]

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Last modified: August 7, 2008