Car Wash Employer’s Bond Provisions Increased and Extended Indefinitely – AB 1387

The existing law in Section 2067 of the Labor Code, relating to car washes regulates the employment practices of car washes, including providing specific recordkeeping requirements that employers of car washers must implement with regard to car washer wages, hours, and working conditions, under the enforcement authority of the Division of Labor Standards and Enforcement.

Existing law requires employers of car washers to register with the Labor Commissioner and pay a specified registration fee, or be subject to a specified civil fine. The fines and registration fees are deposited into the Car Wash Worker Restitution Fund and the Car Wash Worker Fund and, upon appropriation by the Legislature are made available to be disbursed by the commissioner, as specified, and to be applied to costs incurred by the commissioner in administering these provisions.

Existing law also requires employers of car washes to post a $15,000 bond for the benefit of the state to compensate employees damaged by the employer’s nonpayment of wages. Existing law repeals these provisions on January 1, 2014.

On October 11, 2013 Governor Brown signed into law Assembly Bill 1387, this bill increases the employer’s bond requirement amount to $150,000, but would exempt an employer from that requirement if the employer has a collective bargaining agreement in place that meets specified criteria.

This bill also deletes the repeal date of the provisions described above, thus extending those provisions indefinitely.

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