AB 1387,
as amended, begin deleteCommittee on Labor and Employmentend delete begin insertRoger Hernándezend insert. Car washes.
Existing law 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 lawbegin delete alsoend delete 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.begin insert
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.end insert Existing law repeals these provisions on January 1, 2014.
begin insertThis bill would increase 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.end insert
This bill wouldbegin insert alsoend insert delete the repeal date of the provisions described above, thus extending those provisions indefinitely.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 2055 of the end insertbegin insertLabor Codeend insertbegin insert is amended to
2read:end insert
The commissioner may not permit any employer to
4register, nor may the commissioner permit any employer to renew
5registration until all of the following conditions are satisfied:
6(a) The employer has applied for registration to the
7commissioner by presenting proof of compliance with the local
8government’s business licensing or regional regulatory
9requirements.
10(b) The employer has obtained a surety bond issued by a surety
11company admitted to do business in this state. The principal sum
12of the bond shall be not less thanbegin delete fifteenend deletebegin insert
one hundred fiftyend insert thousand
13dollarsbegin delete ($15,000)end deletebegin insert
($150,000)end insert. The employer shall file a copy of
14the bond with the commissioner.
15(1) The bond required by this section shall be in favor of, and
16payable to the people of the State of California and shall be for
17the benefit of any employee damaged by his or her employer’s
18failure to pay wages, interest on wages, or fringe benefits, or
19damaged by violation of Section 351 or 353.
20(2) Thirty days prior to the cancellation or termination of any
21surety bond required by this section, the surety shall send written
22notice to both the employer and the commissioner, identifying the
23bond and the date of the cancellation or termination.
24(3) An employer may not conduct any business until the
25employer obtains a new surety bond and files a copy of it with the
26commissioner.
27(4) This subdivision shall not apply to an employer covered by
28a valid collective bargaining agreement, if the agreement expressly
29provides for all of the following:
P3 1(A) Wages.
end insertbegin insert2(B) Hours of work.
end insertbegin insert3(C) Working conditions.
end insertbegin insert
4(D) An expeditious process to resolve disputes concerning
5nonpayment of wages.
6(c) The employer has documented that a current workers’
7compensation insurance policy is in effect for the employees.
8(d) The employer has paid the fees established pursuant to
9Section 2059.
Section 2067 of the Labor Code is repealed.
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