Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2750

Introduced by begin delete Committee on Labor and Employment (Roger Hernández (Chair), Alejo, Chau, Gomez, and Holden) end delete begin insert Assembly Member Roger Hernández end insert

March 13, 2014

An act to begin delete amend Labor Code Section 2055, relating to car washes. end delete begin insert add Section 2066.5 to the end insert begin insert Labor Code, relating to car washes. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2750, as amended, begin delete Committee on Labor and Employment end delete   begin insert Roger Hernández end insert . Car washes.

begin insert

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.

end insert begin insert

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.

end insert begin delete

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.

end delete begin delete

This bill would make nonsubstantive changes to this provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 2066.5 is added to the end insert begin insert Labor Code end insert begin insert , to
read: end insert

begin insert

begin insert 2066.5. end insert   

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.

end insert

begin delete

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.

end delete