Almost all small farms will need to hire someone at some point. Although the laws and regulations around agricultural employment can seem daunting, if you are running a business, it is very important to take your legal responsibilities seriously. Starting off on the right foot as an employer when you hire your first employee can save you a lot of headaches (and potential fines) later on.
At the federal level, the Fair Labor Standards Act, sets minimum wage and overtime rules for agricultural employers. In New York the Minimum Wage Order for Farm Workers (CR-190) covers the rules that govern wages for hourly farm workers. In both the state and federal regulations there are exemptions from the minimum wage provisions and the overtime pay provisions for certain agricultural employees. For example, family members that you employ (spouse, children, and parents – but not siblings) are exempt from minimum wage and overtime – if you can get them to agree to work for you. The exemptions from minimum wage can help small farms afford some agricultural labor.
There are other exemptions from minimum wage requirements for farm workers, but there are differences between what qualifies you for the exemption from the state minimum wage and what exempts you from federal minimum wage. Agricultural employers are exempt from the New York State minimum wage if the total cash remuneration paid all persons employed on the farm did not exceed $3,000 in the previous calendar year. The federal exemption from minimum wage, however, is based on the amount of time that labor was employed on the farm. For federal minimum wage, any employer in agriculture who did not utilize more than 500 "man days" of agricultural labor in any calendar quarter of the preceding calendar year is exempt this year from the federal minimum wage and overtime pay provisions of the FLSA. A "man day" is defined as any day during which an employee performs agricultural work for at least one hour. Good recordkeeping from the start will help a new employer stay in compliance with both rules. To be in compliance with both of these rules, it is very important to keep good timesheet records of your employees from their first day of employment as current exemptions are based on your prior period payroll or labor usage.
Can other benefits that you provide count towards the wage? Maybe. Although the value of meals and housing and other in-kind benefits that both the employer and the worker agree upon, that are at farm market value can count towards meeting the state minimum wage, New York State has very specific rules as to how much value can be credited for meals and housing, and they are pretty low. These amounts are listed in the minimum wage order (CR-190).
What about volunteers, interns, apprentices and stipends? Many small farms are creative when it comes to managing their labor costs. For most agricultural production jobs (field work, animal care, harvesting etc.) it is unlikely that many seasonal apprenticeships, internships, volunteer labor or stipends on a commercial farm for farm workers would be found to be in compliance with either federal or state labor laws. According to federal law, for example, volunteers are allowed only for charitable, religious or faith-based 501(c)3 organizations. This means that for-profit businesses are not legally allowed to have volunteers work for them.
Failure to comply with minimum wage requirements in federal and state law can be serious. Although the odds of a very small farm being randomly investigated by the Department of Labor may be small, complaints by a disgruntled worker or former worker could lead to an investigation and the fines could be significant. In New York, for example, employers would be required to pay the back wages due, and may be subject to interest and civil penalties up to 200 percent of the unpaid wages. Several small farms in California and Oregon were cited for significant wage violations related to farm interns. A publication in our resources list developed by ATTRA/NCAT and California Farm Link helps outline and educate growers about some of the issues, and presents options for farmers who want to engage in educational and mentorship programs on their farms.
In the long run, setting your farm up to be in compliance with federal and state minimum wage requirements from the beginning will give you more peace of mind down the line as your business grows. If you are about to hire your first employee or have questions about federal or state minimum wage requirements in agriculture, contact the NYS DOL at 1-888-4NYSDOL. Or e-mail your questions to LSAsk@labor.ny.gov.
RESOURCES
New York State Department of Labor Worker Protection https://www.labor.ny.gov/workerprotection/laborstandards/farm_labor.shtm
New York State Minimum Wage Order for Farm Workers (CR-190) http://www.labor.state.ny.us/formsdocs/wp/CR190.pdf
United States Department of Labor (Fact Sheet 12: Agricultural Employers Under the Fair Labor Standards Act (FLSA) http://www.dol.gov/whd/regs/compliance/whdfs12.htm
California Guide to Labor Laws for Small Farms https://www.biodynamics.com/files/images/nabdap/CA_Guide.pdf.
California Guide to Labor Laws for Small Farms
Last updated June 1, 2016