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California Car Wash ($150,000) Bond
A California Car Wash Bond is a sort of surety bond that is needed in the state of California for persons who participate in the business of vehicle washing and polishing. The purpose of this bond is to assure that the car washing company and its owner comply with specific legal labor regulations and associated employer duties in accordance with the terms of California Labor Code Section 2055(b).
The Labor Commissioner requires that a surety bond in the amount of $150,000 be posted as a condition of operating a car wash business. According to the provisions of Section 2055(b)(1) of the Labor Code of the State of California, this surety bond must be in compliance with all conditions. As a general rule, the principal is required to pay workers their earned salaries, interest on earnings, and fringe benefits when they are due in line with the law.
This surety bond has a continuous format and will continue to be in full force and effect until it is canceled or terminated in the way specified. It is expected that the bond will continue to be in full force and effect for any and all obligations that were incurred before the cancellation or withdrawal of the bond, as well as for any actions, omissions, or causes that existed before the cancellation or withdrawal.
Car wash and polishing employees are covered by the California Car Wash Bond in the event that financial damages are incurred as a result of a violation of the California Labor Code Section(s) 351 and/or 353, or as it pertains to the law where such portion of earned wages, interest on wages, and fringe benefits are due to these employees.
Bonds for car washes in California are not quite the same as standard license and permit bonds. Rather, they are more comparable to wage and welfare surety obligations. In accordance with Article 13 of Chapter 2 of Title 14 of Part 2 of the Code of Civil Procedure, the surety has the ability to terminate the bond.
Bond Amount
The cost of the California Car Wash Bond premium is calculated on a yearly basis. The rate is often described in terms of both a monetary amount and a percentage of the total bond value when it is mentioned.
This particular kind of bond does not have a predetermined interest rate. The credit and/or financial status of the principal, as well as the surety’s state filed rates, are taken into consideration when determining the quotations that are supplied by the surety.
The range of interest rates that are often cited for this sort of bond is from 2% to 8% of the total bond amount. This is by no means an exact range. The actual bond estimate may be lower or higher than the range based on the applicant’s credit history and/or their current financial situation.
Qualifications/Requirements
All workers of the car wash firm are obliged to purchase the California Car Wash Bond as a form of financial protection. If an employer fails to pay wages, interest on wages, fringe benefits, or violates Section 351 or 353 of the Labor Code and an employee is damaged as a result of this, the Labor Commissioner or the employee may proceed against the employer’s surety bond by taking whatever action the Labor Commissioner or the employee deems appropriate to obtain the unpaid wages, interest on wages, fringe benefits, or gratuities from the bond (California Code of Regulations, Title 8, Chapter 6).
According to Section 2051 of the California Labor Code, an employee is any person, including an alien or a minor, who renders actual car washing and polishing services in any business for an employer, whether for tips or for wages, and whether wages are calculated by time, piece, task, commission, or other method of calculation, and whether the services are rendered on a commission, concessionaire, or other basis.