California Farmworkers Lose Hours and Pay Due to Overtime Law

Lawmakers propose tax credits to offset costs for farmers and restore earnings for workers

Published on Mar. 11, 2026

Farmworkers across California are losing work hours and income due to the state's agricultural overtime law, forcing families to cut back on essentials and seek second jobs. While the law was meant to raise wages, it has instead resulted in employers shortening the workweek to keep costs down. Researchers estimate farmworkers have lost $80 to $120 per week on average, with those impacted the most effectively losing over $300 per week. Lawmakers are now considering tax credits to offset the cost to farmers of paying overtime premiums, which could significantly boost earnings for some of the state's lowest-income residents.

Why it matters

The unintended consequences of California's agricultural overtime law have had a significant impact on farmworker families, forcing them to take on second jobs, cut back on essentials, and spend less time with their children. This issue highlights the challenges of balancing worker protections with the economic realities facing the agricultural industry, which operates on tight profit margins and faces global competition.

The details

When California phased in a 2016 law entitling farmworkers to more overtime benefits, many workers like Araceli Aceves Cortés saw their work hours and income decline by about a third. Researchers found that by 2022, farmworkers in the state were working 3-5 hours less per week on average, with their weekly income declining by $80 to $120. Those who went from 60 to 40 hours per week effectively lost over $300 per week. Farmers say they can't afford to pay large amounts of overtime without eliminating their profitability, as they lack the bargaining power to pass along cost increases to buyers in the global marketplace.

  • In 2016, California phased in a law entitling farmworkers to more overtime benefits.
  • From 2019 to 2025, the agricultural overtime law was fully phased in, requiring farmers to pay time and a half for hours over 8 per day or 40 per week.
  • By 2022, when the overtime law was partially phased in, researchers found farmworkers were working 3-5 hours less per week on average.

The players

Araceli Aceves Cortés

A mother of three who used to work 60 hours per week in the fields and orchards of the Sacramento Valley, but has lost about a third of her work hours and income due to the overtime law.

Alexandra Hill

A University of California, Berkeley professor who researches agricultural economics and farmworker well-being, and has presented ongoing research on the impacts of the overtime law.

Kimberly Clark

The executive director of the California Farm Labor Contractor Association, who said labor contractors reported a surge in requests from farmworkers seeking referrals for second jobs after the overtime law took effect.

Mark Hall

A table grape grower in Kern County who says he can't afford to pay overtime to his 150 contract laborers, as it would eliminate his profitability.

Bryan Little

The senior director of policy advocacy for the California Farm Bureau and chief operating officer of the affiliated Farm Employers Labor Service, who says rising labor costs have pushed many California farmers to change crops or go out of business.

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What they’re saying

“Suddenly, I couldn't cover the electricity bill. I couldn't pay rent.”

— Araceli Aceves Cortés, Farmworker (agalert.com)

“I would expect the effects to get larger. Overwhelmingly, all the workers we've talked to mostly report their hours just being capped at 40.”

— Alexandra Hill, University of California, Berkeley professor (agalert.com)

“It's been a big challenge.”

— Leticia Hermosillo, Crew leader (agalert.com)

“The money is just not there to do that.”

— Mark Hall, Table grape grower (agalert.com)

“It would be hugely beneficial for farmworkers who want those extra hours and want to earn more money.”

— Alexandra Hill, University of California, Berkeley professor (agalert.com)

What’s next

Senate Bill 921, coauthored by state Sen. Shannon Grove and state Sen. Melissa Hurtado, would create a tax credit to offset the cost to farmers of paying overtime premiums. Researchers estimate the tax credit could cost California $336 million to $679 million per year, but would significantly boost earnings for individual farmworkers.

The takeaway

The unintended consequences of California's agricultural overtime law have had a significant negative impact on farmworker families, forcing them to take on second jobs and cut back on essentials. While the law was meant to raise wages, it has instead resulted in reduced work hours and income. Lawmakers are now considering tax credits to help offset the costs for farmers and restore earnings for some of the state's lowest-income residents.