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Car Wash Bonds / Car Wash Surety Bond California

A surety bond in the amount of One Hundred and Fifty Thousand Dollars ($150,000.00) is required or if you are a car wash employer with a valid collective bargaining agreement no bond is required. (Always contact the State of California Department of Industrial Relations for exact licensing requirements) The bond must be issued by a surety company licensed to do business in the State of California and must be in favor of, and payable to the people of the State of California.

The bond may either be on the surety’s form or on the form provided by the Labor Commissioner, Car Wash Bond, DLSE 668 (01/06). See below link
http://www.dir.ca.gov/dlse/CarWash/CW-Bond1.pdf

Car Wash Surety Bond Requirements – New and Renewal (Rev. 11/17/16) DLSE 667
A surety bond in the amount of $150,000 must be in place and continuous while conducting a car washing and polishing business unless you are covered by a valid collective bargaining agreement.

“Car washing and polishing” means washing, cleaning, drying, polishing, detailing, servicing, or otherwise providing cosmetic care to vehicles. “Car washing and polishing” does not include motor vehicle repair, as defined in Section 9880.1 of the Business and Professions Code. Labor Code section 2051(a). Every person engaged in the business of car washing & polishing must register with the Labor Commissioner. California Code of Regulations, Title 8, Section 13680 through 13693.

If you intend to contract with an employee leasing company as the employer, that employee leasing company must be currently registered with the Labor Commissioner as an employer engaged in the business of car washing and polishing, and you must submit the following:

A copy of the signed contract between you and the employee leasing company; and A current workers’ compensation insurance certificate that is provided to you by the employee leasing company. Proof of compliance with the local government’s (i.e., city, county, district, etc.) business licensing or regional regulatory requirements. For example, a car wash operating within the jurisdiction of the South County Regional Wastewater Authority is required to have an industrial waste discharge permit certificate, a copy of which would be included in the applicant’s registration packet.

Contact information and website for the State Obligee below:

DEPARTMENT OF INDUSTRIAL RELATIONS
Division of Labor Standards Enforcement
Licensing & Registration Unit
1515 Clay Street, Suite 401 Oakland, CA 94612
Tel: (510) 285-3502 Fax: (510) 286-1366

http://www.dir.ca.gov/dlse/Car_Wash_Polishing.htm

This page is for informational purposes only, always consult with your attorney, State, Local and City Departments for their specific licensing requirements.

What are Surety Bonds?

A Surety Bond is a written agreement that usually provides for financial compensation in case the principal fails in their duties or promises. A Surety bond is a specialized type of insurance that is created whenever one party guarantees an obligation by another party.

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