BILL ANALYSIS Ó
AB 2897
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 2897
(Committee on Labor and Employment) - As Introduced March 1,
2016
SUBJECT: Car washes
SUMMARY: Requires a car wash employer to provide written
notice to a successor employer regarding the requirements of
existing law prior to the sale or other transfer of the
business.
EXISTING LAW:
1)Regulates the employment practices of car washes, including
providing specific recordkeeping requirements that employers
of car wash workers must implement with regard to wages, hours
and working conditions.
2)Requires employers of car wash workers to register with the
Labor Commissioner and pay a specified registration fee, or be
subjected to a specified civil fine.
3)Provides that a successor to any car wash employer that owed
wages and penalties to the predecessor's former employees is
liable for those wages and penalties if certain criteria are
met.
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FISCAL EFFECT: None. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: Existing law regulates the employment practices of
car washes and requires employers of car wash employees to
register with the Labor Commissioner and pay a specified
registration fee, or be subject to a specified civil fine.
Existing law also provides that a successor car wash employer
may be liable for unpaid wages and penalties incurred by a
predecessor car wash employer if certain conditions are met.
This bill would require a car wash employer to notify a
successor in writing of the requirement of the car wash
registration law, including the potential for successor
liability for unpaid wages, prior to the sale or other transfer
of the business.
According to the author, requiring a person selling their car
wash business to inform a prospective purchaser about the
requirements of the law will ensure greater awareness of and
compliance with the law.
Prior Legislation
This bill is identical to AB 1505 (Committee on Labor and
Employment) from last year. That measure was subsequently
amended to deal with an unrelated issue.
This bill is also identical to AB 2750 (Roger Hernández) from
2014. That measure was subsequently amended to deal with an
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unrelated matter.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
Opposition
None on file.
Analysis Prepared by:Ben Ebbink / L. & E. / (916) 319-2091
AB 2897
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