BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2750
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                               Roger Hernández, Chair
               AB 2750 (Roger Hernández) - As Amended:  March 28, 2014
           
          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.

           FISCAL EFFECT  :   None

           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.








                                                                  AB 2750
                                                                  Page  2


          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.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Rural Legal Assistance Foundation




           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091