44-1604. APPLICANT — PROOF OF FINANCIAL RESPONSIBILITY — PAYMENT OF CLAIMS. (1) Each applicant shall submit with the application and shall continually maintain proof of financial responsibility to ensure the prompt payment of employees’ wages pursuant to chapter 6, title 45, Idaho Code, and the payment of any claims awarded pursuant to section 44-1613, Idaho Code.

(2) Proof of financial responsibility shall be in the form of a surety bond from a company licensed to do business in the state of Idaho. The surety bond shall be in the amount of ten thousand dollars ($10,000) if the farm labor contractor employs no more than twenty (20) employees, and thirty thousand dollars ($30,000) if the contractor employs more than twenty (20) employees.

(3) The surety bond shall be for the benefit of the farm labor contractor’s employees and shall be conditioned upon the payment of all sums legally owing to them.

(4) The surety bond shall be executed to cover the farm labor contractor’s liability for the period for which the license is issued, during which time the bond cannot be canceled or otherwise terminated.

(5) All claims against the bond shall be unenforceable unless request for payment of a court judgment, or lien pursuant to section 45-620, Idaho Code, has been sent by certified mail to the surety. The surety company shall make prompt and periodic payments on the farm labor contractor’s liability to the extent of the total amount of the bond.

(6) In lieu of the surety bond required by this section, an applicant or farm labor contractor may deposit with the department cash or other security acceptable to the director. The deposit shall not be less than ten thousand dollars ($10,000) if the farm labor contractor employs no more than twenty (20) employees, and thirty thousand dollars ($30,000) if the farm labor contractor employs more than twenty (20) employees. The security deposited with the director in lieu of the surety bond shall be returned to the farm labor contractor at the expiration of two (2) years after the farm labor contractor’s license has expired or been otherwise terminated, unless the director has received written notice that a legal or administrative action has been instituted against the farm labor contractor for failing to comply with the requirements of this chapter.

History:

[44-1604, added 2002, ch. 328, sec. 1, p. 922.]