Employment: employer contributions: employee withholdings: credit: agricultural employees.

Senator Grove's agricultural overtime wage credit proposal would allow California farm employers to claim tax credits against their employee withholdings for overtime wages paid to agricultural workers. Under the measure, employers covered by Industrial Welfare Commission Wage Order 14-2001 could receive credits equal to the difference between overtime and regular wage rates paid each quarter, capped at their total employee withholding amounts.

The bill establishes specific mechanisms for claiming the credits through employers' existing quarterly contribution reports or electronic funds transfers to the Employment Development Department (EDD). While modifying the remittance process, the measure maintains current tax withholding requirements and employee tax liability levels. The legislation authorizes EDD to develop implementing regulations and defines key terms including overtime wages and employee categories.

According to the bill's findings, the credit aims to address economic pressures facing California agriculture, including drought impacts, land value changes, and industry-specific challenges documented in federal agricultural census data. The authors note that similar overtime support programs exist in Oregon and New York, and cite University of California research on agricultural overtime impacts. The measure follows Governor Newsom's 2024 statement emphasizing investment in farmworker well-being as critical to California's agricultural success.