UFW Says Labor Contractors Encourage Jobless Claim Fraud

The head of the United Farm Workers union has told an Assembly committee that fraudulent collection of unemployment benefits by agricultural workers is costing the state millions of dollars a year.

UFW President Arturo Rodriquez said some unscrupulous farm labor contractors and growers are responsible and are encouraging the practice because it enables them to keep wages low.

“The contractor or foreman tells the farm worker to go file for unemployment insurance with the state,” he said, “and then obtain a fake Social Security card so the worker can be paid (to work) while drawing benefits.”

“Many farm workers are essentially given the choice of double dipping or not working at all. It is widespread in a variety of crops.”

Rodriguez and others at the hearing Wednesday said it was mostly farm labor contractors who pay field hands less than the minimum wage, usually in cash to hide the transaction, then tell the workers to supplement their income with illegal unemployment benefits.

To back up his charge, Rodriguez brought to the hearing several workers who testified they had been offered such an arrangement but had refused to go along with it. Using assumed names and requesting that television cameras be turned off, the witnesses testified in Spanish with Rodriguez serving as their interpreter.

Assemblyman Johan Klehs (D-San Leandro), chairman of the Revenue and Taxation Committee, called the charge a “spectacular allegation that should be investigated by appropriate state agencies.”

He also indicated he may introduce legislation in the Assembly’s 1994 session to tighten state controls on farm labor contractors.

Rodriguez said “double dipping” is used by employers to discourage workers from complaining about low pay and poor field conditions because the workers know that they are part of the scam.

State Labor Commissioner Victoria Bradshaw told the committee she believes the state has been “extremely active” in upholding labor laws, but she cited a relatively small number of field agents to monitor enforcement.

Bradshaw said there are 70 employees in the Bureau of Field Enforcement, including 50 investigators, of whom 12 are assigned to the agricultural and garment industries statewide. At various times of the year an estimated 900,000 workers are employed in California’s $18-billion agriculture industry.

“How can you go after probably thousands of farm labor abuses with that few investigators?” Klehs asked after the hearing.