BILL NUMBER: AB 2750 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Committee on Labor and Employment
( Roger Hernández (Chair), Alejo, Chau,
Gomez, and Holden ) Assembly Member
Roger Hernández
MARCH 13, 2014
An act to amend Labor Code Section 2055, relating to car
washes. add Section 2066.5 to the Labor
Code, relating to car washes.
LEGISLATIVE COUNSEL'S DIGEST
AB 2750, as amended, Committee on Labor and Employment
Roger Hernández . 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 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. Existing law also requires employers of car
washers to post a $150,000 bond for the benefit of the state to
compensate employees damaged by the employer's nonpayment of wages,
except as specified. Existing law also provides that a successor to
an employer that owed wages and penalties to the predecessor's
employees is liable for those wages and penalties under specified
circumstances.
This bill would require a car wash employer to provide written
notice to a successor employer regarding the above provisions prior
to the sale or other transfer of the business.
Existing law regulates the employment practices of car washes and
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. Existing law also requires employers of car
washers to post a $150,000 bond for the benefit of the state to
compensate employees damaged by the employer's nonpayment of wages,
except as specified.
This bill would make nonsubstantive changes to this provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2066.5 is added to the
Labor Code , to read:
2066.5. An employer engaged in car washing and polishing shall
notify a successor with written notice of the provisions of this
part, including Section 2066, prior to the sale or other transfer of
the business.
SECTION 1. Section 2055 of the Labor Code is
amended to read:
2055. The commissioner shall not permit any employer to register,
nor may the commissioner permit any employer to renew registration,
until all of the following conditions are satisfied:
(a) The employer has applied for registration to the commissioner
by presenting proof of compliance with the local government's
business licensing or regional regulatory requirements.
(b) The employer has obtained a surety bond issued by a surety
company admitted to do business in this state. The principal sum of
the bond shall be not less than one hundred fifty thousand dollars
($150,000). The employer shall file a copy of the bond with the
commissioner.
(1) The bond required by this section shall be in favor of, and
payable to the people of the State of California and shall be for the
benefit of any employee damaged by his or her employer's failure to
pay wages, interest on wages, or fringe benefits, or damaged by
violation of Section 351 or 353.
(2) Thirty days before the cancellation or termination of any
surety bond required by this section, the surety shall send written
notice to both the employer and the commissioner, identifying the
bond and the date of the cancellation or termination.
(3) An employer shall not conduct any business until the employer
obtains a new surety bond and files a copy of it with the
commissioner.
(4) This subdivision shall not apply to an employer covered by a
valid collective bargaining agreement, if the agreement expressly
provides for all of the following:
(A) Wages.
(B) Hours of work.
(C) Working conditions.
(D) An expeditious process to resolve disputes concerning
nonpayment of wages.
(c) The employer has documented that a current workers'
compensation insurance policy is in effect for the employees.
(d) The employer has paid the fees established pursuant to Section
2059.