Bipartisan Bill Would Create Overtime Tax Credit for California Farm Employers

A bipartisan group of Central Valley lawmakers has introduced legislation aimed at increasing farmworker take-home pay while helping agricultural employers manage the cost of overtime.

State Sen. Shannon Grove, R-Bakersfield, and state Sen. Melissa Hurtado, D-Bakersfield, have unveiled Senate Bill 921, which would create a payroll tax credit for agricultural employers to offset the cost of paying overtime wages. The bill is co-sponsored by the California Farm Bureau and the California Association of Winegrape Growers.

Under SB 921, employers would receive a tax credit equal to the difference between a farmworker’s overtime rate of pay and their regular hourly wage. Supporters say the measure would encourage employers to offer more overtime hours while ensuring workers receive higher earnings during peak agricultural seasons.

“I’m proud to introduce SB 921, a straightforward bill that gives California’s farm employers a payroll tax credit to help cover the extra cost of overtime pay for our hardworking farmworkers,” Grove said in a statement. She described the proposal as a “win-win solution” that would allow workers to log more hours and improve their take-home pay without placing additional strain on farms operating on tight margins.

Hurtado noted the bill reflects the interdependence of workers and agricultural businesses. 

“Behind every meal is a story of love, sacrifice and hard work in the fields,” she said. “SB 921 honors the sweat and sacrifice behind our food with a modern, fair approach to wages, because in agriculture, farms, workers and families rise or fall together.”

The proposal follows concerns raised by farmworkers and employers after implementation of the Phase-In Overtime for Agricultural Workers Act of 2016. Beginning in 2019, that law required agricultural employers to pay time-and-a-half for work beyond 40 hours per week, gradually lowering the overtime threshold from 60 hours.

Shannon Douglass, president of the California Farm Bureau, noted farmers had warned lawmakers that lowering the overtime threshold could lead to fewer hours and reduced wages. 

“This tax credit is a practical solution that puts money directly into the hands of farmworkers, helps farms remain viable employers and strengthens the rural communities that grow our food,” Douglass said.

Natalie Collins, president of the California Association of Winegrape Growers, pointed to similar efforts in other states and called for bipartisan action in California. She noted that Oregon and New York have adopted agricultural overtime tax credits, while legislation is under consideration in Massachusetts.

SB 921 is modeled in part on California’s Film and Television Tax Credit Program, which lawmakers expanded by $420 million annually in 2025. Supporters argue that if the state can invest heavily in the entertainment industry, it can also support agriculture, an industry that employs an estimated 415,000 farmworkers statewide.

As the bill moves through the Legislature, supporters frame it as a targeted adjustment designed to preserve farm viability while restoring earning opportunities for workers. Whether it gains traction will signal how California balances labor protections with the economic realities of its agricultural sector.