Small errors in payroll or worker classification can lead to big consequences—especially in ag operations, where labor laws change fast. From misclassifying seasonal or H-2A workers to overlooking new overtime rules or skipping documentation, farms face serious risk if they’re not up to date.
This post breaks down three of the most common compliance missteps we see on Northwest farms—plus how to fix them before they trigger audits, fines, or wage disputes. Whether you're managing a year-round team or a seasonal workforce, these tips can help you stay compliant and protect your operation.
The 3 Most Common Labor Law Violations
1. Misclassifying Workers or Failing to Track Hours Properly
Misclassifying employees or skipping time tracking creates major compliance problems for farms, especially those with seasonal and H-2A labor.
Farm owners must know the difference between H-2A workers, domestic seasonal employees, and permanent staff. Each group has different protections and recordkeeping rules. If you treat them all the same on payroll, you risk violating state and federal laws.
Accurate time tracking is also critical, especially for non-exempt workers under Oregon and Washington’s evolving overtime laws. Even if your crew works variable hours, you need a system that reliably captures their time.
Here’s what’s at stake if you don’t:
- Unpaid wages: Back pay claims can go back years.
- Audits: DOL and state agencies audit farms for classification and wage issues.
- Lawsuits: Workers who feel underpaid may pursue private legal action.
Strong systems are key to avoiding these risks. Ensure that your worker categories and timekeeping tools reflect current law, not outdated practices.
2. Ignoring Overtime Rules for Agricultural Workers
Misunderstanding state-specific overtime rules is one of the most common (and costly) compliance issues on farms today.
In Oregon, for example, ag overtime laws are being phased in. They will require time-and-a-half pay for hours worked beyond 55 per week in 2024 and eventually 40 hours by 2027. Washington and California have their own thresholds.
Many farms still assume their workers are exempt from overtime—or they rely on outdated rules. Others pay “piece-rate” wages without tracking hours, which doesn’t protect them from overtime obligations.
Even good-faith mistakes can trigger penalties, including:
- Fines for unpaid overtime
- Wage claims going back multiple years
- Interest and legal fees on top of back pay
The bottom line: If you’re not actively tracking hours and applying the correct rules by worker type and state, you’re exposed. Overtime laws aren’t optional—and enforcement is increasing.
3. Relying on Verbal Agreements or Incomplete Documentation
Poor documentation opens the door to wage disputes, compliance failures, and legal trouble. Farms that rely on handshake agreements or verbal terms often struggle to defend themselves when something goes wrong. Without clear records, you don’t have proof of what was agreed—especially when pay or job duties are questioned.
To protect your operation, make sure you have:
- Written job descriptions that outline duties and responsibilities
- Pay rate agreements are signed by both the employer and the employee
- I-9 forms are properly completed and stored for every worker
Even if you trust your crew, documentation matters. Incomplete records make it hard to respond to Department of Labor audits or worker complaints. And with seasonal turnover, you can’t rely on memory or verbal history.
Documentation isn’t just a formality—it’s a frontline defense against costly claims.
How TNT Helps Farms Stay in the Clear
TNT helps farms avoid compliance mistakes by handling the hard parts—like payroll, worker classification, and time tracking—so you don’t have to.
As a compliance-first PEO, we stay ahead of labor law changes and make sure your processes match the latest rules. From day one, we’ll help you correctly classify workers, implement reliable timekeeping systems, and prepare for audits with confidence.
Here’s how we support you:
- Payroll: Accurate, on-time, and fully compliant with wage laws
- Worker classification: Guidance on H-2A, seasonal, and exempt vs. non-exempt roles
- Time tracking tools: Practical solutions for field and seasonal labor
- Audit prep and documentation: So you're ready if inspectors come calling
With deep experience supporting agricultural operations in Oregon and Idaho, we understand your seasonal workforce and compliance challenges. Our job is to help you focus on running your farm—not labor law.
Don’t Let Small Mistakes Create Big Trouble
Want to make sure your farm’s in the clear? Let’s talk about how we can help you avoid common labor law violations—and stay focused on running your operation.