DOL Enforcement Report Targets Employment-Related Contract Provisions 

October 24th, 2024

The U.S. Department of Labor’s Solicitor of Labor, Seema Nanda, has just released the agency’s 2024 Solicitor of Labor Enforcement Report (Report). This year’s Report outlines agency initiatives for the coming year focused on addressing concerns about “coercive” contractual provisions in employment-related agreements. 

Key provisions of the Report include a focus on increased litigation efforts targeting what the DOL considers unlawful and coercive “fine print” provisions in employment-related agreements. These provisions include, but are not limited to, the following: 

  • Contract provisions that require employees to agree that they are independent contractors. 
  • Provisions that shift employer liability for legal violations to workers or other entities (e.g., requiring employees to pay the employer for damages the employer is ordered to pay because it misclassified employees). 
  • “Loser pays” provisions that require employees to pay the employer’s attorneys’ fees and costs if the employees fail in litigation or arbitration. 
  • “Stay or pay” provisions, including some training repayment assistance provisions, that require workers to pay damages to their employer for leaving a contract early.i 
  • Company policies requiring workers to report safety concerns to their employer before contacting any government agencies. 
  • Broadly worded confidentiality, non-disclosure, and non-disparagement provisions.  
  • Other contract provisions requiring employees to waive their legal rights. 

While the Report itself is not legally binding, including these or other similar types of provisions in employment-related agreements or policies may put employers at risk under both state and federal law.  

With the new year just around the corner, employers should take the opportunity to review existing policies and contractual language with an eye toward the above-mentioned provisions. 

The Reservoir Unveils the First On-Farm Robotics Incubators

October 23rd, 2024

Reservoir Farms Incubators Open First in Salinas and Merced in 2025

Anchor Partners Include Western Growers, UC ANR, Merced College, Hartnell College, and HawkTower

WOODLAND, CALIF., Oct. 23, 2024 — Today at FIRA USA 2024, the Reservoir announced the first-ever on-farm robotics incubators, Reservoir Farms, set to open in the Central and Salinas Valleys in early 2025. This pioneering initiative significantly shifts how agricultural technology innovates through real-world testing environments, world-class resources, and critical industry partnerships. 

California agriculture faces critical challenges, including labor availability and cost, import competition, increased regulation, water scarcity, and climate-related challenges, including extreme weather. These challenges have spurred significant advancements in agricultural precision, automation, mechanization, and robotics in recent years. Despite advancements, early-stage agtech projects lack critical ecosystem support, like connecting directly with growers, testing and validating their solutions, and accessing dedicated shop space and farmland. These gaps hinder capital efficiency and the development of critical solutions that meet the agricultural sector’s needs.

Initial projects at the incubators will focus on early-stage agricultural innovations in automation and robotics, including rovers and drones, that accelerate the development of breakthrough solutions to the opportunities and imperatives faced by California farms producing high-value specialty crops, such as labor shortages, profitability, and adopting climate-smart technologies. 

Western Growers Association, a key advocate for advancing agricultural innovation, will provide financial and operational support as an anchor partner. Anchor educational partners like UC ANR, Hartnell College, and Merced College will play a crucial role in innovation and workforce development, preparing the next generation of agricultural researchers, professionals, and innovators to drive the future of farming in California. HawkTower, a venture capital firm investing in early-stage startups developing breakthrough innovations for California’s environmental and industrial imperatives, is also an anchor partner.

“The launch of Reservoir Farms is a critical step forward in ensuring the future resilience of California’s agriculture and across the Central Coast and Central Valley,” said Danny Bernstein, CEO of the Reservoir and Managing Partner of HawkTower. “By placing incubators directly on the farm, we enable innovators to test, iterate, and scale solutions in real-world conditions as a more immediate path to advance farming communities.”

A New Model to Incubate AgTech Innovation

The idea for Reservoir Farms emerged from extensive industry research and consultations with over 50 organizations in the specialty crop sector. Key insights uncovered critical gaps in startups’ access to real-world testing environments, shop space, and direct relationships with growers—factors severely hindered capital efficiency and posed a formidable barrier to innovation.

“Our goal is to eliminate the friction points that have historically slowed down the development of new agtech solutions,” said Walt Duflock, Senior Vice President of Innovation at Western Growers Association. “Reservoir Farms offers a new model, where startups can work side-by-side with growers to test their technologies, iterate in a low-stakes environment, and build scalable solutions to improve agriculture’s operations.”

Supports Thriving Agtech Ecosystem and Job Creation

The Reservoir Farms initiative also reflects a broad-based collaboration between key educational institutions, industry players, and local communities to ensure the next generation of agricultural professionals is equipped with the skills needed to support the region’s growing agtech sector. Supporting partners include Central Coast Small Business Development Center (SBDC), Communities Organized for Relational Power in Action (COPA), Digital NEST, Farmhand Ventures, Merced County Farm Bureau, Milano Technical Group, Monterey Bay DART (Drone Automation & Robotics Technology), Monterey Bay Economic Partnership, Monterey County Farm Bureau, Tesserakt Ventures, and The Vine. 

“As robotics and automation become more integral to California agriculture, it’s essential to have facilities like Reservoir Farms embedded within the farming community,” said Gabriel Youtsey, Chief Innovation Officer at UC ANR. “By bridging the gap between lab-based research and real-world application and accelerating tech transfer, Reservoir Farms can help build the workforce and technology needed to address the critical challenges on the farm, from labor shortages to climate change.”

A Focus on Specialized Services and Real-World Testing in California’s Agricultural Heartland

Reservoir Farms will open its first two locations in Salinas Valley and Merced in the first quarter of 2025. Participants can lease testing fields and shop space without the burden of multi-year leases, giving them the flexibility needed to scale. The incubators will offer fully equipped R&D workshops, secure storage for expensive equipment, and customized, pre-planted specialty crop fields for testing. These facilities will be complemented by Reservoir Farms’ co-working spaces, meeting rooms, and a robust demo day schedule designed to connect startups with growers, investors, and other key stakeholders.

In addition, the Western Growers Association’s validation process will provide startups with a quantitative “scorecard” that offers crucial metrics on scalability, efficacy, and financial viability. This validation, combined with UC ANR’s field testing, will help startups refine their products and receive a critical stamp of approval that builds trust with growers and ensures a smoother path to commercialization.

About the Reservoir: 

The Reservoir is a 501(c)(3) nonprofit building tech incubators for California’s future. Founded in 2024, the Reservoir creates spaces where startups, researchers, organizations, and corporations can develop and test innovations beyond Silicon Valley, focusing on rural areas like the Central and Salinas Valleys. The Reservoir drives economic growth, workforce development, and environmental resilience across California’s agricultural heartlands. Learn more at www.thersvr.org.

AB 2499: Revised Rights for Victims of Violence

October 24th, 2024

California’s newly enacted AB 2499 creates additional protections for employees who are victims of violence or have family members who are victims. The new bill amends the state’s Fair Employment and Housing Act (FEHA) to make it an unlawful employment practice to discriminate or retaliate against employees who take time off work to seek medical attention. It also allows employees to obtain services relating to crime, abuse or safety planning. This includes allowing employees to use paid sick leave to lessen any financial hardship associated with addressing the impacts of violence. The new statute also revises and recasts employer leave obligations for jury and court appearances.  

Key provisions of the bill include: 

  • Prohibiting an employer with 25 or more employees from discharging, discriminating, or retaliating against an employee who is a victim or has a family member who is a victim for taking time off work for any additional prescribed purposes relating to a “qualifying act of violence.” 
  • Permitting an employer to limit the total leave taken, as specified (i.e., 12-weeks, 10-days, 5-days as applicable). It also requires that the leave taken by an employee pursuant to these provisions run concurrently with leave taken pursuant to the Family and Medical Leave Act and the California Family Rights Act if the employee would have been eligible for such leave. 
  • Expanding the eligibility for reasonable accommodations to include an employee who is a victim or whose family member is a victim of a qualifying act of violence for the safety of the employee while at work.  
  • A duty to inform each employee of their rights under the bill. This information must be provided to new employees upon hire, to all employees annually, at any time upon request, and any time an employee informs an employer that the employee or the employee’s family member is a victim. The bill mandates the California Civil Rights Department to develop and post on or before July 1, 2025, a form that an employer may use to comply with this requirement. 

Next Steps 

  • Policy Updates: Employers should review and update workplace policies to ensure compliance with the bill’s updated definitions and new requirements. This includes revising employee handbooks and training materials to reflect the protections and accommodations mandated by AB 2499. 
  • Training and Awareness: AB 2499’s modifications to existing law make it critical that HR personnel and managers receive training on the new regulations to prevent inadvertent violations.

FDA Launches Environmental Microbiological Study on Cantaloupes

October 22nd, 2024

The U.S. Food and Drug Administration (FDA), in collaboration with Purdue University and local agricultural stakeholders, is launching a multi-year study aimed at understanding the ecology of human pathogens, particularly Salmonella, in Southwest Indiana. This initiative follows several Salmonella outbreaks linked to cantaloupe from the region. 

This study will examine how Salmonella is distributed and survives in Indiana’s environment, with the goal of identifying and implementing practical and cost-effective strategies to mitigate these risks. 

According to the FDA: “This study is intended to help the FDA and the local growing community better understand the source of pathogens, their persistence, and how they transfer through the growing environment to help inform food safety practices.” 

Additional information can be found here. 

USCIS Introduces New E-Verify+ Form I-9 Digital Processing Service

October 17th, 2024

The U.S. Customs and Immigration Service, in conjunction with the Social Security Administration (the Department), is offering a new online Form I-9 digital processing service. E-Verify+ is an enhanced online service offering a simplified employment eligibility verification process for both employers and employees. E-Verify+ integrates the Form I-9 process directly into the Department’s existing E-Verify program, and purports to help employers comply with Form I-9 requirements as efficiently as possible. 

A few key features of the new program include: 

  • Integrated Form I-9 Process 
    • Employees complete the Form I-9 directly through E-Verify+, reducing the administrative burden on employers and shifting the responsibility of providing accurate data to the employee, hopefully reducing errors and streamlining the verification process.  
    • Employees receive immediate notification confirming they are “Employment Authorized,” or they receive a “Tentative Nonconfirmation” notice alerting them of a discrepancy and providing information on what steps they must take to confirm eligibility. In most cases, this will relieve the employer of existing non-confirmation notification requirements.  
    • Once in the E-Verify+ system, employees will be able to update and share employment eligibility status with new employers, making it unnecessary to repeat the compliance process with each new job.  
  • Automated Case Creation: Form I-9 information provided by the employee is automatically used by the E-Verify+ system to create and submit an E-Verify case, again reducing administrative burdens and saving time for employers. 
  • Secure and Convenient: The employer portions of the Form I-9 are also completed online (from any device) within the E-Verify+ system, ensuring flexibility and security. 

Employers interested in participating in E-Verify+ should consider the following: 

  • Create an E-Verify+ account:  
    • Review the E-Verify+ Overview and Employer Information sheets. 
    • Complete the steps to create an E-Verify+ account, accept the terms and watch the required video to access the Form I-9 process within E-Verify+. 
  • Train Employees:
    • Provide clear instructions to employees on how to create or log into their “myUSCIS” Account and complete their Form I-9. 
  • Monitor Case Statuses:  
    • Regularly check the status of E-Verify+ cases to ensure timely completion and compliance. 
  • Maintain Documentation:  
    • Keep detailed records of all E-Verify+ cases and related documents for audit purposes. 

Additional Employer Resources can be found on the E-Verify+ website.  

USDA Warns Shippers of Fraudulent Purchaser Scams

October 22nd, 2024

The USDA Agricultural Market Service’s Perishable Agricultural Commodities Act Division (PACA) is warning produce sellers to know their buyer after reports that various entities and individuals may be falsely representing themselves as current PACA licensees and legitimate purchasers in the industry – ordering produce, arranging its pick-up and transport, and not paying for that produce.

According to the USDA, in these instances, once the product is ordered, the fraudulent purchaser arranges its transport but never pays for it. When the shipper invoices the company to whom they believe they sold the produce, that company informs the seller that they did not purchase or receive the product. Only then, when the shipper begins attempting to verify email addresses, phone numbers, names, and titles, does the seller realize that they were deceived and the produce was not legitimately purchased. The fraudulent purchaser is typically using actual names of companies in the industry when arranging these transactions.

To avoid falling victim to this type of fraud, shippers should confirm the integrity of the supply chain from pick-up through delivery, the USDA says. Shippers are advised to confirm produce buyers’ information, including delivery destination, names of company personnel, phone numbers, and email addresses to the information reported on the PACA website and in other industry third-party sources.

For questions regarding a shipper’s rights and responsibilities under the PACA, please visit https://www.ams.usda.gov/rules-regulations/paca, call 1-800-495-7222, or contact me at [email protected].

 

Don’t Miss Out: Navigate California’s New Workplace Violence Prevention Requirements

October 21st, 2024

Attention HR professionals! Are the new workplace violence prevention requirements leaving some questions unanswered? Mark your calendars for Thursday, November 7, 2024— this event is a must for anyone seeking to strengthen compliance strategies.

What’s It All About?

Join an in-depth exploration of California’s new workplace violence prevention mandates in an engaging, in-person session led by Priscila Cisneros, Learning and Development Manager, and Teresa McQueen, Corporate Counsel at Western Growers. This isn’t just another seminar; it’s an opportunity to understand the intricacies of compliance in a safety-driven industry.

Why Should Attendance Be a Priority?

  • Stay Ahead of the Game: With new regulations, staying informed is crucial. This session will provide an overview of California’s latest mandates, clarifying their implications for organizations and outlining important compliance deadlines.
  • Get Legal Perspectives: The legal landscape can be complex, but insights from Teresa McQueen will highlight employer responsibilities and potential liabilities, offering clarity for navigating these new requirements.
  • Craft a Prevention Plan: Attendees will leave equipped with a roadmap for developing an effective workplace violence prevention plan tailored to the unique challenges of the agriculture sector. Best practices for risk assessment, reporting and response procedures will also be covered.

Who Should Be There?

This event is designed for professionals within the agriculture sector. Whether in human resources, farm management or safety compliance, valuable insights and strategies await those committed to fostering a safe workplace.

Ready to take action?

Don’t miss this opportunity to enhance your knowledge and ensure compliance. Click here to register and secure your spot today.

Details:

  • Date: Thursday, November 7, 2024
  • Registration & Continental Breakfast: 9:30AM – 10:00AM
  • Program: 10:00AM – 12:00PM
  • Location: Courtyard By Marriott Bakersfield (3601 Marriott Drive Bakersfield, California, USA, 93308)

Register Here

San Diego County Enacts Fair Chance Ordinance for Unincorporated Areas

October 17th, 2024

San Diego County recently passed a Fair Chance Ordinance that went into effect October 10, 2024. The ordinance applies to businesses operating in the unincorporated areas of San Diego County and aligns with the state’s existing Fair Chance Act as well as similar laws in other California jurisdictions (e.g., San Francisco and the City of Los Angeles). 

A few key points of the new ordinance include: 

  • Applies to employers with five or more employees and to employees working at least two hours per week in the County’s unincorporated areas. 
  • Prohibits employers from asking about or considering an applicant’s criminal history before making a conditional job offer. 
  • Requires a written individualized assessment to determine if an applicant’s criminal history directly relates to the job duties. 
  • If adverse action is taken based on the applicant’s criminal history, employers must provide a written notice, a copy of the background check report, and an opportunity for the applicant to respond. 

Although the San Diego ordinance largely follows existing state fair chance provisions, there are a few requirements that should be specifically noted: 

  • The ordinance applies to remote workers.  
  • The individualized assessment does have to be written, but it does not have to be provided to the applicant.  
  • Any preliminary notice sent to the applicant must include notice of the right to file a complaint with both the California Civil Rights Department and the County of San Diego Office of Labor Standards and Enforcement.  
  • Records must be retained for a period of one year from the application of employment.  
  • There is no private right of action under the ordinance; however, civil penalties for non-compliance can range from $5,000 – $20,000.  

To ensure compliance with the new ordinance, employers should consider the following: 

  1. Review and Update Hiring Policies: Ensure that job postings and application forms comply with the new ordinance by removing any questions about criminal history. 
  2. Train Hiring Managers: Educate those involved in the hiring process about the ordinance requirements and the importance of conducting individualized assessments. 
  3. Document Assessments: Keep detailed records of all assessments and decisions related to criminal history for at least one year. 

New Cal/OSHA Regulation Mandates Opioid Antidotes in First Aid Materials (AB 1976) 

October 17th, 2024

California’s newly enacted AB 1976 requires the California Division of Occupational Safety and Health (Cal/OSHA) to adopt new standards requiring first aid materials in workplaces to include naloxone hydrochloride or other FDA-approved opioid antidote. Naloxone is a medication designed to rapidly reverse opioid overdoses. 

Cal/OSHA has until December 1, 2027, to draft and propose the new regulations which must be considered for adoption by the Standards Board on or before December 1, 2028 

What Does It Mean? 

AB 1976 is a regulatory mandate that does not require immediate employer action. However, employers should be aware that the Cal/OSHA regulatory process regarding updating workplace first aid requirements is underway and will impact compliance (e.g., updates to first aid kits, internal policy reviews and training) in the future.  

The 98th Western Growers Annual Meeting is Almost Here!

October 28th, 2024

It’s not too late to be a part of the 98th Western Growers Annual Meeting in Scottsdale, Arizona, from November 3-6.

This four-day event is the premier gathering for key players in the fresh produce industry. In addition to being in great company, attendees can look forward to exceptional networking experiences and some of the best entertainment around.

Join us for an exciting lineup of speakers, including trailblazing sports executive and analyst, Amy Trask; award-winning journalist and media executive, Laura Ling; and acclaimed journalist and author Bari Weiss. The Award of Honor Gala, celebrating Sonny Rodriguez, President and CEO of The Growers Company, will feature entertainment by mentalist Oz Pearlman.

Guests will have numerous opportunities to network with industry leaders at events such as the Welcome Reception, the PAC Luncheon, the Boots and Roots Hoedown, the Growers Cup Golf Tournament and the 2nd Annual Pickleball Classic.

Please click here for more information or contact Cheryl Hall at [email protected] for more details.

The Reservoir Unveils First On-Farm Ag Robotics Incubators for Specialty Crops

October 15th, 2024

The Reservoir, a nonprofit organization building tech incubators for California’s future, previewed its first on-farm ag robotics incubator—Reservoir Farms—for specialty crops last week.

With the support of strategic partners Western Growers, UCANR, Merced Community College District, Hartnell College, and HawkTower VC for California’s future, this pioneering incubator will bring advanced robotics and automation solutions directly to California farms.

The incubators will launch with projects focused on early-stage automation and robotics innovations that accelerate solutions faced by California farms producing high-value specialty crops.

A special press conference will take place at FIRA USA 2024 on Wednesday, October 23 at 9 a.m., where attendees can learn more about Reservoir Farms and how it will shape the future of farming.

For more information about Reservoir Farms, visit www.thersvr.org.

To secure your tickets to FIRA USA 2024, click here.

Growers can register for free by clicking here. Not a grower? Don’t worry. If you’re a member of Western Growers and the Western Growers Center for Innovation and Technology (CIT), you can get 50% off your ticket by clicking here.

WG 98th Annual Meeting: Know Before You Go

October 21st, 2024

The 2024 Western Growers Annual Meeting is just around the corner at the JW Marriott Scottsdale Camelback Inn Resort & Spa. To help you get ready for an enjoyable stay, we’ve provided some key details below. For the full schedule, guest bios and more, click here.

Registration

Collect your name badge, official program, Annual Meeting materials and purchase additional event tickets at the Registration and Guest Services desk in the West Foyer of the Paradise Ballroom. Please remember to wear your badge to all events.

Welcome Reception

Join us for the first of many opportunities to connect and network with friends and colleagues at the Welcome Reception, held in the hotel’s North Garden.

Dining

We encourage making dinner reservations both at the hotel and off-site for evenings outside of the program. Please click here for suggestions.

Airport Transportation

Uber, Lyft and taxi services are available outside baggage claim at the airport.

App Information

The official Western Growers Annual Meeting 2024 mobile app is now available for download! Access your interactive conference guide, maps, floor plans, speaker information and more directly within the app. Simply visit the Apple App Store or Google Play Store and search for “Western Growers” to download and log in. If this is your first time using the app, please create a new login profile. If you had an account last year, you can use the same login information.

To get started:

  1. If you have an iPhone or iPad, please click here to download the app.
  2. If you have an Android device, please click here to download the app.
  3. Create an account by tapping the profile icon in the top right corner if you’re a new user or log in with your existing credentials.
  4. Check-in and start enjoying all the in-app features.

If you already have the app, please make sure it’s updated to access the latest information. Download the app and set up your profile for a chance to win a two-night stay at the JW Marriot Scottsdale Camelback Resort & Spa.

Don’t forget to post your best #wgamselfie in the app for a chance to win an exclusive Western Growers Stanley!

Weather and Attire

November temperatures in Scottsdale typically range from 78°F during the day to the low 50s in the evenings.

The attire for all daytime events is resort casual.

Get ready to dust off your cowboy boots and favorite denim for the Boots and Roots Hoedown! This outdoor event takes place at the Mummy Mountain Western Town. As the temperature will drop a few degrees after sunset, be sure to pack a jacket. Although the Western Town is on the JW Marriot property, it’s about a 10-minute walk from the hotel lobby. For your convenience, golf cart service is available – just call the bell desk to request a ride.

The attire for the Award of Honor Dinner is evening cocktail, with sports coats optional and no ties required.

Camelback Golf Club’s Ambiente Course

Participants in Wednesday morning’s golf tournament are invited to join a putting contest at 7 AM, followed by a shotgun start at 8 AM. Shuttles will be available to and from the Camelback Golf Club, departing at 6:30 AM and 6:45 AM, with return trips from the golf course at 2:00 PM and 2:20 PM.

A “breakfast on the go” will be provided at the course, followed by lunch afterward.

Pickleball Classic

The 2nd Annual Pickleball Tournament will take place at the JW Marriot Tennis Courts on Wednesday at 8 AM. The day will begin with a warm-up and beginner session from 8:00 to 8:30 AM, followed by tournament play at 8:30.  Participants will have plenty of opportunities to play and skill levels may be combined. All skill levels are welcome.

Be sure to bring your paddle, sunscreen and a hat! Breakfast and refreshments will be provided. USA Pickleball rules will apply.

 

EPA Launches Online Toolbox for Pesticides and Endangered Species 

October 15th, 2024

The U.S. Environmental Protection Agency (EPA) has launched an online toolbox that offers educational resources on pesticides and endangered species. This initiative aims to improve protection for endangered species while supporting farmers and promoting environmental safety. 

The Pesticide and Endangered Species Educational Resources Toolbox features a variety of materials, including: 

  • Guidance documents 
  • Handouts 
  • Presentations 
  • Informational webinars 
  • Additional resources related to the EPA’s endangered species work 

These resources are designed to help educate growers about the strategies and mitigation measures outlined in the Endangered Species Act (ESA) that may be found on product labels. The EPA intends to continuously update the toolbox with new materials as they become available.  

For more information and to access the toolbox, click here. 

Free Entry for Growers at FIRA USA 2024

October 15th, 2024

For the first time, growers can attend the third annual FIRA USA event, scheduled for Oct. 22-24, 2024, in Woodland, California, for free.

The event will showcase more than 35 robots demonstrating advancements in ag automation solutions in three demonstrations zones, more than 70 booths in the event’s exhibition hall, and an array of panel discussions, round tables and pitches from some of the brightest minds in agriculture.

FIRA’s exciting agenda and panel discussions include:

  • Building an Agricultural Technology Innovation Economy
  • California AgTech Open Innovation Ecosystem
  • Autonomous Irrigation Solutions for Specialty Crops
  • Advancements in Robotics for Farm and Food Production: A 2024 Review
  • Addressing Automation Needs in the Vegetable Industry Through the World
  • Robots Case Studies: Figures and ROI Analysis
  • Empowering the Future of Agriculture: The Workforce and Education Program in Ag

This is an event you won’t want to miss! For a full agenda, click here.

Growers can register for free by clicking here.

Ag and FFA students can also register for free by clicking here: https://fira-usa.com/school-education/.

Not a grower? Don’t worry. If you’re a member of Western Growers and the Western Growers Center for Innovation and Technology (CIT), you can get 50% off your ticket by clicking here.

New Voices of the Valley: The Next Generation of Ag Leaders

October 14th, 2024

The next generation of ag leaders are playing an important role in shaping the future of farming.

California is one of the most vital agricultural regions in the world, and these emerging voices are navigating an industry influenced by climate change and the need for sustainability, water and labor shortages and advancements in agtech.

We explore the California Agricultural Leadership Program and discussing the challenges and opportunities our future leaders are facing in the ever-evolving landscape of agriculture.

Featuring: Abby-Taylor Silva, Executive VP of the California Agricultural Leadership Foundation; Bryan Nickerson, Commodity and Supply Chain Services Director for Western Growers; and Cory Lunde, VP of External Affairs for Western Growers.

You can listen to the full episode here.

Western Growers 2nd Annual Pickleball Classic at the 2024 Annual Meeting

October 14th, 2024

Join us on the courts for the Second Annual Pickleball Tournament at the 98th Western Growers Annual Meeting! Whether you’re a seasoned pro or just picking up a paddle, all skill levels are welcome. We’ll kick off the day with a warm-up and beginner session from 8:00 to 8:30 AM, and the tournament will begin at 8:30. Participants will have plenty of chances to play and skill levels may be combined. USA Pickleball rules will apply.

Be sure to bring your paddle, sunscreen and a hat! Breakfast and refreshments will be provided. If you want to join in on the pickleball fun, don’t forget to sign up for an additional $65 here!

Understanding “Protection” in Produce Transactions: A Cautionary Approach

October 11th, 2024

I frequently receive calls from our members about transaction issues, whether unfolding in real time or arising after the fact, as they work to resolve them. A common theme I hear is, “I granted the buyer protection,” and my immediate response is always the same: “What does ‘protection’ mean to you?” The answers vary widely, underscoring a key issue—there is no standard definition of “protection” under the PACA (Perishable Agricultural Commodities Act). This is why it is advised for sellers to avoid using undefined terms like “protection” or “price after sale” in their dealings, as it can lead to confusion and complicated disputes.

To clarify, let me break down the two most common ways “protection” is used in the industry—neither of which are PACA-defined terms, but both are prevalent in produce transactions:

1. Market or Price Protection

This type of protection shields the buyer from a market price decline between the date of sale and the date the product is received. It’s crucial that both parties agree, before the sale, whether this protection will apply to changes at the shipping point market or the destination market.

If providing market protection is part of your business practice, be sure that your agreements with growers reserve the authority to grant such adjustments. Sales agents should also retain records showing that market protection was discussed and agreed upon before shipment. Importantly, market decline adjustments should never be used by buyers to justify short-paying invoices 60 days after shipment.

2. “Full Protection” or “Protection Against Loss”

This type of protection is a modification of the original sales contract. It doesn’t alter the sales price but instead serves as a safety net if the buyer resells the product at a loss. In this case, if the resale price is higher than the original F.O.B. price plus freight, the buyer keeps the excess profit. However, if the gross proceeds from resale are lower than the total cost (F.O.B. price plus freight), the buyer deducts freight from the proceeds, ensuring they don’t suffer an out-of-pocket loss. If the resale proceeds are insufficient to cover the freight, the seller covering “full protection” must pay the remainder of the freight cost.

In such cases, the seller may not always have access to the account of sales, which can further complicate matters.

If you are finding these distinctions complex or difficult to manage, it may be best to avoid using the term “protection” altogether when negotiating load dispositions with your customers. Instead, consider granting a straightforward adjustment (allowance) or allow the customer to handle the product on a consignment basis, where you’ll receive a detailed account of sales.

As always, if you have any questions, concerns, or need assistance, please don’t hesitate to contact me at 949-885-4808 or [email protected].

 

EDD Challenges H-2A Employer on Unemployment Taxes for Housing and Meals

October 11th, 2024

The Employment Development Department (EDD) is targeting an H-2A employer with a move that could have wide-reaching implications for the agricultural industry in California. In a recent preliminary hearing before an administrative law judge at the California Unemployment Insurance Appeals Board, the EDD is seeking to apply unemployment taxes to meals and housing provided to H-2A workers. According to the Auditor’s Report, the EDD has assessed over $800,000 in unemployment taxes for a three-year period on the value of board and lodging, claiming these items constitute taxable wages under state law. 

The Impact on H-2A Employers 

If the EDD’s position is upheld, the ruling would not create a binding legal precedent. However, it would incentivize the EDD to audit other H-2A employers in the state to recover allegedly unpaid unemployment taxes on the same misguided theory. The provision of free housing and meals to H-2A workers has long been a requirement under federal law and regulations. Employers must either provide three meals a day or offer kitchen facilities so workers can purchase and prepare their own food. These provisions are considered necessary for the workers’ well-being and compliance with the H-2A program’s requirements—not as fringe benefits that could be subject to unemployment taxes. 

Western Growers, along with other agricultural organizations, is actively engaged in conjunction with the employer’s counsel, Jeanne Malitz, in challenging what they believe to be an erroneous interpretation by the EDD. The industry’s stance is that the EDD’s approach fundamentally misunderstands the nature of these federally mandated requirements. Unlike traditional fringe benefits, items like housing and meals are integral to the H-2A program and are provided to comply with federal law, much like personal protective equipment (PPE) or other required work-related items. 

The EDD’s argument overlooks the fact that the free housing and subsidized meals required for H-2A workers have never been classified as taxable wages by either the Department of Labor (DOL) or the EDD itself in previous assessments. By attempting to categorize these mandatory provisions as taxable income, the EDD is creating uncertainty and financial strain for employers who are merely complying with the law. 

Next Steps 

The employer involved in the case has a deadline to submit their brief on November 6, 2024. This filing will outline the legal arguments against the EDD’s assessment, emphasizing the inconsistency with federal regulations, state law and established practices. 

Given the potential consequences for the broader agricultural sector, this case is being closely watched by industry stakeholders. If left unaddressed, the result of this case could recur and lead to severe repercussions for agricultural employers across California.  

Western Growers will continue to engage on and monitor this case closely. 

SB 1100:  New Two-Part Test for Driver’s License Requirement in Hiring

October 10th, 2024

California’s Senate Bill 1100 (SB 1100) amends the state’s Fair Employment and Housing Act (FEHA) by introducing a new two-part test governing when an employer may require a job applicant to possess a driver’s license. Beginning January 1, 2025, before including a statement in a job advertisement, posting, application or other hiring materials that an applicant must have a driver’s license, employers must satisfy both of the following conditions: 

  1. The employer reasonably expects driving to be one of the job functions for the position; and  
  2. The employer reasonably believes that satisfying the job function using an alternative form of transportation would not be comparable in travel time or cost to the employer. 

An “alternative form of transportation” includes, but is not limited to, all of the following: Using a ride hailing service, using a taxi, carpooling, bicycling, or walking. 

What Does It Mean 

Without limitation, for any position where there is a reasonable expectation that driving will be required as “one” of the job functions of the position being applied for, the two-part test must be applied.  

To ensure compliance and lower the risks associated with allegations of discrimination, employers should consider the following: 

  • Evaluate all hiring materials applying the new two-part test. If a position does not meet the requirements, all materials associated with the position should be revised. Since the statute does not make allowances for essential or major job functions, all job functions should be considered when applying the two-part test.  
  • Review any polices or procedures that reference the need for a driver’s license to ensure they refer/apply only to those positions that meet the two-part test.  
  • As always, training is a major component when it comes to compliance. Human Resources, recruiting staff, as well as managers/supervisors should all be trained on SB 1100’s new requirements and be familiar with which positions the statute impacts.  

DOL Provides AI Framework to Assist in Reducing Risks Associated with AI Technology 

October 10th, 2024

The U.S Department of Labor’s (DOL) Office of Disability Employment Policy (ODEP) has been actively addressing the intersection of artificial intelligence (AI) and disability in employment. The DOL’s efforts are in response to President Biden’s 2023 Executive Order directing federal agencies to begin finding ways to address important AI-related workplace issues. Below are a few key aspects of agencies policy and initiatives related to AI: 

AI & Inclusive Hiring Framework 

ODEP, through its Partnership on Employment & Accessible Technology (PEAT), has developed the AI & Inclusive Hiring Framework. This Framework is designed to help employers use AI tools in a way that is inclusive and accessible to people with disabilities. By guiding employers through the process of making AI-enabled hiring tools more inclusive and accessible, employers will be able to address and reduce the risks of unintentional discrimination that can arise through the use of AI technologies. 

AI & Disability Inclusion Toolkit 

The AI & Disability Inclusion Toolkit is another resource provided by ODEP. This toolkit offers guidance on how to implement AI technologies in a manner that promotes disability inclusion. It includes an Equitable AI Playbook, which provides a blueprint for fostering disability inclusion while procuring, developing, and implementing AI technologies. 

Addressing Bias in AI 

One of the significant concerns with AI in the hiring process is the potential for bias. AI tools can inadvertently reflect the biases of their creators, leading to the exclusion of qualified candidates with disabilities. For example, AI-powered tools that track eye movement during interviews can disadvantage candidates with disabilities affecting vision or eye contact. ODEP’s resources emphasize the importance of deploying AI tools that are free from such biases.  

Best Practices for AI Implementation 

If your organization is using or anticipating the use of AI tools in the HR space, the ODEP recommends several best practices to ensure AI tools are used effectively and inclusively: 

  • Identify Legal Requirements: Identify and gain a sold understanding of the employment-related laws that intersect with the use of AI tools (e.g., nondiscrimination, accessibility and privacy laws).  
  • Training and Awareness: Provide training for your Human Resources staff on the potential biases and accessibility issues related to the use of AI in the workplace. Human Resources staff should also understand the limitations and functionality of the AI tools available to them and have a strong sense of responsibility in their use.  
  • Conduct Accessibility Audits: Regularly evaluate AI tools to ensure they are accessible to all users. 
  • Feedback Mechanisms: Establish channels for employees and candidates to provide feedback on their experiences with the company’s AI tools.