As of January 1st, 2014 a car wash and polishing business must post a California car wash surety bond with the only exception being for those car wash and polishing businesses that are participants in certain, specific collective bargaining agreements.  Section 2055 of the California Labor Code has been permanently modified to include this law.  The previous regulatory code (Section 2067) has been repealed and the new statute has no sunset provision.

Pursuant to the Labor Commissioner’s portal, “Every person engaged in the business of car washing & polishing must register with the Commissioner.  “Car washing and polishing” means washing, cleaning, drying, polishing, detailing, servicing, or otherwise providing cosmetic care to vehicles.  “Car washing and polishing” does not include motor vehicle repair, as defined in Section 9880.1 of the Business and Professions Code. “Employer” means any individual, partnership, corporation, limited liability company, joint venture, or association engaged in the business of car washing and polishing that engages any other individual in providing those services.  The “employer” is the principal obligated to ensure compliance with the car wash surety bond requirement.  “Employee” means any person, including an alien or minor, who renders actual car washing and polishing services in any business for an employer, whether for tips or for wages, and whether wages are calculated by time, piece, task, commission, or other method of calculation, and whether the services are rendered on a commission, concessionaire, or other basis.”

The California car wash surety bond obligation guarantees the that the employer will pay to employees when due in accordance with the law such portion of earned wages, interest on wages, and fringe benefits as are due to said employees, and such damages as are due an employee damaged by a violation of California Labor Code Section(s) 351 and/or 353.  The surety bond is continuous in form and remains in full force and effect throughout all succeeding registration periods, unless canceled by surety.  The cancellation provision is in accordance with article 13, (commencing with section 996.310) of chapter 2, title 14, part 2, of the California Code of Civil Procedure.  The surety bond obligation does not appear to be cumulative in nature, stating on its face, “The aggregate liability of the Surety hereunder on all claims whatsoever shall not exceed the penal sum of this bond in any event.”

California surety leader, Surety One, Inc. is a specialist in the bonding needs of the temporary employment and professional employer services industry.  We offer both surety and fidelity bonds needed by these professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a California car wash surety bond application or information on ANY bonding need.