BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2750
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2750 (Roger Hernández)
          As Amended  March 28, 2014
          Majority vote 

           LABOR & EMPLOYMENT     6-0                                      
           
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          |Ayes:|Roger Hernández, Grove,   |     |                          |
          |     |Alejo, Chau, Holden,      |     |                          |
          |     |Ridley-Thomas             |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           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.  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.








                                                                  AB 2750
                                                                  Page  2



          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.

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


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