California car wash bonds are a type of surety bond required by the California Department of Industrial Relations’ Division of Labor Standards Enforcement before a car wash can conduct business. Simply put, a car wash bond is intended to ensure car wash owners remain compliant with labor laws and employer obligations, pursuant to sections 351 and 353 of the California Labor Code. Typically, employers who plan on doing business as a car wash must register with the Labor Commissioner, and a $150,000 minimum bond must be filed. Additionally, this bond is required to be active as long as the employer is registered with the Labor Commissioner.
If you'd like information, forms, or applications for a California Car Wash bond, please reach out to one of our surety specialists or fill out our bond request form online. Contact us today! One of our experienced surety agents will be happy to walk you through each step of our simple and easy bonding process.
The California Department of Industrial Relations’ Division of Labor Standards Enforcement requires car wash owners to obtain a car wash bond before acquiring a license to do business and hire employees. According to the California Code of Regulations, Title 8, Section 13680-13693, anyone involved in the business of washing and polishing cars must be registered with the Labor Commissioner. This includes any involvement in the cleaning, detailing, drying, polishing, washing, or other cosmetic treatments relative to automobiles. Services such as automobile repair are excluded as is defined in Section 9880.1 of the Business and Professions Code.
These bonds provide financial protections to the employees of car washes in California. Specifically, California car wash bonds provide protections if an employer fails to pay wages, interest on wages, fringe benefits, and gratuities. If a claim is made on the car wash bond, the surety will determine whether the claim is valid. Once the claim is determined to be valid, the surety pays the claim and attempts to recover the losses from the principal (the employer). Ultimately, the principal is responsible for any amount paid out by a surety.
California car wash bonds are financial guarantee bonds, meaning that the surety writing the bond is effectively guaranteeing the employer’s payments as stated on the bond, up to the bond amount. These kinds of bonds typically require the business owner to present a personal financial statement along with the bond application. Additionally, a credit check and business financial statement may be required.
An individual's credit report determines the price paid for a car wash surety bond. Well qualified applicants with strong financial credentials could qualify to pay as low as 1% of the required bond amount. If you are ready to find out how much a California car wash bond costs, then fill out our free quote form now!
Whether you are looking for a California car wash bond or any other type of surety bond in California, The ProSure Group helps you find the right surety bond quicker & easier. Our goal is to provide you with simple and efficient service so you can focus on your business while we make sure your suppliers are dependable. Contact The ProSure Group today to request a free bond quote!
Fill Out The Form Below and
Receive your FREE Quote Today
|License||California Car Wash Bond||California Department of Industrial Relations’ Division of Labor Standards Enforcement
||$150,000||Click Here To Get Bonded|