The California Labor Commissioner’s Office (LCO) has secured a $6,175,000 settlement with Santa Maria-based Alco Harvesting LLC dba Bonipak Produce Inc. and related entities for widespread wage-and-hour violations that affected more than 10,000 farmworkers, including H-2A workers living in employer-provided housing during the COVID-19 pandemic.

The LCO opened this investigation in 2020 after receiving information that a farmworker living in employer-provided housing had died from COVID-19. It discovered that Alco Harvesting failed to provide workers with the legally required written notice of available paid sick leave and COVID-19 supplemental paid sick leave. Without this information, workers could not effectively use these protections.

During the early days of the pandemic, workers who did not know how much paid sick leave they had were effectively prevented from staying home when sick, increasing the risk of COVID-19 transmissions. In some cases, H-2A workers believed to have COVID-19 were quarantined in crowded employer-provided motel rooms. The investigation also found other labor law violations, including unpaid transportation time, overtime and minimum wage.

The LCO filed this lawsuit on July 16, 2021, in Santa Barbara Superior Court against Alco Harvesting LLC dba Bonipak Produce Inc., and related entities. The court consolidated the LCO’s lawsuit with a separate action filed by the California Rural Legal Assistance (CRLA) on behalf of H-2A workers, along with several related lawsuits filed by other plaintiffs. Additional details about the defendants and the terms of the settlement are outlined in the court order.

As the case progressed, the Central Coast Alliance United for a Sustainable Economy (CAUSE) and CRLA referred additional H-2A workers to LCO investigators and supported outreach efforts. These organizations helped ensure workplace conditions were documented and violations were reported. CRLA and the PAGA plaintiffs consolidated with the LCO’s lawsuit also helped identify additional wage-and-hour violations, expanding the relief available to workers.

Of the total settlement, $4.2 million will be distributed directly to affected farmworkers, including approximately $1.5 million for paid sick leave and minimum wage violations. Remaining funds will be used to pay wages and other damages, penalties and interest to workers, counsel fees and expenses, individual plaintiff claims, and administrator expenses.

The settlement also includes non-monetary relief, such as required postings and additional notices to H-2A workers about paid sick leave, and ongoing compliance and reporting requirements.

CAUSE and CRLA are part of the California Workplace Outreach Project launched in 2020 to help address workplace concerns related to COVID-19.