48-1705. Applicant; proof of financial responsibility; payment of wage claims; procedure.

(1) Each applicant shall submit with the application and shall continually maintain proof of financial responsibility to ensure the prompt payment of wages of employees and other obligations that may arise under the Farm Labor Contractors Act. The proof shall be in the form of a corporate surety bond of a company licensed to do business in the State of Nebraska, a cash deposit, or a deposit the equivalent of cash. The department shall determine the amount of surety required, except that such amount shall not be less than five thousand dollars. In lieu of such surety, the farm labor contractor may establish a savings account at a financial institution in Nebraska in the name of the Commissioner of Labor as trustee for the employees of the farm labor contractor, and others as their interest may appear, and deliver the evidence of the account and the ability to withdraw funds to the department under terms approved by the department. No farm labor contractor license shall be issued to any applicant who has an unsatisfied final judgment of a court or decision of an administrative agency which would be covered by the bond or deposit required by the act against himself or herself. All corporate surety bonds filed under this section shall be executed to cover liability for a period of one year, during which the bond cannot be canceled or otherwise terminated.

(2) The surety company or the department shall make prompt and periodic payments on the farm labor contractor's liability to the extent of the total sum of the bond or deposit. Payments shall be made in the following manner:

(a) Payment shall be made based upon priority of wage claims over advances made by the grower or producer of agricultural commodities;

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

(c) If there are insufficient funds to pay in full, the person next entitled to payment shall be paid in part.

(3) All claims against the bond or deposit shall be unenforceable unless request for payment of a judgment or other form of adequate proof of liability or a notice of the claim has been sent by certified mail to the surety or the department within six months from the end of the year for which the bond or deposit has been made.

(4) If the department has not received notice of the claim within six months after a farm labor contractor is no longer required to provide and maintain a surety bond or deposit, the department shall terminate and surrender any bond or any deposit under control of the department to the person who is entitled thereto upon receiving appropriate proof of such entitlement.

(5) The surety bond or deposit shall be payable to the Commissioner of Labor and shall be conditioned upon:

(a) Payment in full of all sums due on wage claims of employees; and

(b) Payment by the farm labor contractor of all sums due to the grower or producer of agricultural commodities for advances made to or on behalf of the farm labor contractor.

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