CA SB921

Allows agricultural employers covered by Wage Order No. 14-2001 to claim a tax credit equal to overtime wages paid to farmworkers each quarter, applied against state employee withholding remittances

Provides refunds to employers when the credit exceeds their quarterly withholding obligations, contingent upon legislative appropriation in the Budget Act

Requires farm labor contractors to disclose on payroll records the amount of credit received, reducing reported gross wages by the credit amount

Responds to findings that California farmworkers lost an average of $120 per week in earnings and worked 4.7 fewer hours weekly between 2012-2022 following the 2016 agricultural overtime phase-in law

Follows similar agricultural overtime tax credit programs enacted in Oregon (2024) and New York to offset increased labor costs for farm employers