2005 Idaho Code - 44-1604 — APPLICANT -- PROOF OF FINANCIAL RESPONSIBILITY -- PAYMENT OF CLAIMS

                                  TITLE  44
                                    LABOR
                                  CHAPTER 16
                       FARM LABOR CONTRACTOR LICENSING
    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.