Legal Question in Business Law in California

Re: Labor Contractor Recourse

You need to provide in your contract a due date for full payment. If the grower breaches you can sue him right on the spot. You are just being taken advantage of. You run all the risk of illegals and taxes. Put that on the grower.

Re: Labor Contractor Recourse

My first thought is that your company needs to rectify whatever problems result in a six to 24 month aging of receivables at the source.

It could be that the company is too lax in screening clients, its contractual payment provisions are too weak, and/or the billing practices aren't timely and aggressive. Perhaps the need to place and enforce liens could be avoided by changes in business practices. It looks like poor business to be in this posture in the first place.

The ordinary mechanic's lien arises in favor of those who contribute labor or materials, etc. to a 'work of improvement.' This term is defined in Civil Code section 3106. Based on what is expressly included, my hunch is that most farming work is not included.

There may be additional provisions elsewhere in the Civil, Labor or some other code that protect labor contractors. If so, I'm not aware of them. I'll look in a few more resources and post a supplemental answer later if I find anything.

Re: Labor Contractor Recourse

Unfortunately, your remedy is to be a little tougher with collections--if people can get work for free, or free financing for 6-24 months, many will take advantage. Perhaps some or all money paid up front, and then more aggressive collection afterward. Attorney's letters for collections may be enough--if not, sue them. I realize people don't want to anger their clients, but how much free service can you provide, and do you really want non-paying people as clients?

The debts can be negotiated, but this wouldn't even take place until the other side feels some pressure.