Section § 2054

Explanation

Each year, all employers must sign up with the commissioner.

Every employer shall register with the commissioner annually.

Section § 2055

Explanation

This law requires an employer to meet several conditions before they can register or renew their business registration with the commissioner. First, they must show proof that they comply with local business licensing or regional regulations. Next, they need a surety bond of at least $150,000, which is meant to protect employees if the employer fails to pay wages or benefits. The surety company must notify both the employer and commissioner 30 days before canceling the bond. If a bond is canceled, the employer must secure a new one to continue operations. This bond requirement doesn't apply to employers with a collective bargaining agreement covering wages, work hours, conditions, and wage dispute resolutions. Additionally, employers must have active workers' compensation insurance and pay fees established under Section 2059.

The commissioner shall not permit any employer to register, or to renew registration, until all of the following conditions are satisfied:
(a)CA Labor Code § 2055(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)CA Labor Code § 2055(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 not be less than one hundred fifty thousand dollars ($150,000). The employer shall file a copy of the bond with the commissioner.
(1)CA Labor Code § 2055(b)(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)CA Labor Code § 2055(b)(2) Thirty days prior to 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)CA Labor Code § 2055(b)(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)CA Labor Code § 2055(b)(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)CA Labor Code § 2055(b)(4)(A) Wages.
(B)CA Labor Code § 2055(b)(4)(B) Hours of work.
(C)CA Labor Code § 2055(b)(4)(C) Working conditions.
(D)CA Labor Code § 2055(b)(4)(D) An expeditious process to resolve disputes concerning nonpayment of wages.
(c)CA Labor Code § 2055(c) The employer has documented that a current workers’ compensation insurance policy is in effect for the employees.
(d)CA Labor Code § 2055(d) The employer has paid the fees established pursuant to Section 2059.

Section § 2056

Explanation

When you get or renew a business registration certificate, the commissioner will give you detailed information about managing your business and understanding relevant labor laws.

When a certificate of registration is originally issued or renewed under this chapter, the commissioner shall provide related and supplemental information to the registrant regarding business administration and applicable labor laws.

Section § 2057

Explanation

This law requires employers to prove they are registered with the Division of Labor Standards Enforcement by using an official registration form. Employers must also display this form in a place where their employees can easily see and read it during the workday.

Proof of registration shall be by an official Division of Labor Standards Enforcement registration form. Each employer shall post the registration form where it may be read by the employees during the workday.

Section § 2058

Explanation

This law states that the commissioner must send a renewal notice to each registrant at least 30 days before their registration expires. Even if the commissioner forgets to send this notice, it is still the registrant's responsibility to renew their registration on time. The lack of a renewal notice can't be used as an excuse for not renewing, nor does it make the commissioner liable for any legal issues arising from the failure to renew.

At least 30 days prior to the expiration of each registrant’s registration, the commissioner shall mail a renewal notice to the last known address of the registrant. However, omission of the commissioner to provide the renewal notice in accordance with this subdivision may not excuse a registrant from making timely application for renewal of registration, may not be a defense in any action or proceeding involving failure to renew registration, and may not subject the commissioner to any legal liability.

Section § 2059

Explanation

This section of the law requires employers to pay a registration fee for each of their branch locations. The commissioner can adjust this fee as needed to cover costs related to administering and enforcing the law. However, the fee cannot be increased unless the fund’s balance is expected to drop below 25% of the annual expenses.

Additionally, employers must also pay an annual fee equal to 20% of the registration fee per branch. This additional fee goes into the Car Wash Worker Restitution Fund, which likely helps support workers’ rights and compensation.

(a)Copy CA Labor Code § 2059(a)
(1)Copy CA Labor Code § 2059(a)(1) The commissioner shall collect from employers a registration fee for each branch location, and, except as provided in paragraph (2), may periodically adjust the registration fee, in an amount sufficient to fund all direct and indirect costs to administer and enforce this part.
(2)CA Labor Code § 2059(a)(2) The fee established pursuant to paragraph (1) shall not be increased unless the published fund balance is projected to fall below 25 percent of annual expenditures.
(b)CA Labor Code § 2059(b) In addition to the fee in subdivision (a), each employer shall be assessed an annual fee in an amount equivalent to 20 percent of the registration fee collected pursuant to subdivision (a) for each branch location that shall be deposited in the Car Wash Worker Restitution Fund.

Section § 2060

Explanation

Employers must follow specific steps to officially register and secure a bond before running their business.

No employer may conduct any business without complying with the registration and bond requirements of this chapter.

Section § 2061

Explanation

This law outlines the conditions employers must meet to get registered. Employers need to fill out an application form and swear that the information is true. They have to provide details about the business, like its name, structure, and addresses, and a lot of personal information about key people in the company, such as corporate officers or major stakeholders. This includes their names, addresses, Social Security numbers, and any financial interests they have in the business. The application also requires information on the company's current workers' compensation insurance and any financial troubles those key people might have, such as unpaid wages or taxes. If they've been penalized for breaking labor laws before, they need to explain what happened and show if they paid any fines. Finally, the employer must pay a registration fee.

The commissioner may not approve the registration of any employer until all of the following conditions are satisfied:
(a)CA Labor Code § 2061(a) The employer has executed a written application, in a form prescribed by the commissioner, subscribed, and sworn by the employer containing the following:
(1)CA Labor Code § 2061(a)(1) The name of the business entity and, if applicable, its fictitious or “doing business as” name.
(2)CA Labor Code § 2061(a)(2) The form of the business entity and, if a corporation, all of the following:
(A)CA Labor Code § 2061(a)(2)(A) The date of incorporation.
(B)CA Labor Code § 2061(a)(2)(B) The state in which incorporated.
(C)CA Labor Code § 2061(a)(2)(C) If a foreign corporation, the date the articles of incorporation were filed with the California Secretary of State.
(D)CA Labor Code § 2061(a)(2)(D) Whether the corporation is in good standing with the Secretary of State.
(3)CA Labor Code § 2061(a)(3) The federal employer identification number (FEIN) and the state employer identification number (SEIN) of the business.
(4)CA Labor Code § 2061(a)(4) The business’ address and telephone number and, if applicable, the addresses and telephone numbers of any branch locations.
(5)CA Labor Code § 2061(a)(5) Whether the application is for a new or renewal registration and, if the application is for a renewal, the prior registration number.
(6)CA Labor Code § 2061(a)(6) The names, residential addresses, telephone numbers, and Social Security numbers of the following persons:
(A)CA Labor Code § 2061(a)(6)(A) All corporate officers, if the business entity is a corporation.
(B)CA Labor Code § 2061(a)(6)(B) All persons exercising management responsibility in the applicant’s office, regardless of form of business entity.
(C)CA Labor Code § 2061(a)(6)(C) All persons, except bona fide employees on regular salaries, who have a financial interest of 10 percent or more in the business, regardless of the form of business entity, and the actual percent owned by each of those persons.
(7)CA Labor Code § 2061(a)(7) The policy number, effective date, expiration date, and name and address of the carrier of the applicant business’ current workers’ compensation coverage.
(8)CA Labor Code § 2061(a)(8) Whether any persons named in response to subparagraphs (A), (B), or (C) of subparagraph (6) of this section presently:
(A)CA Labor Code § 2061(a)(8)(A) Owe any unpaid wages.
(B)CA Labor Code § 2061(a)(8)(B) Have unpaid judgments outstanding.
(C)CA Labor Code § 2061(a)(8)(C) Have any liens or suits pending in court against himself or herself.
(D)CA Labor Code § 2061(a)(8)(D) Owe payroll taxes, or personal, partnership, or corporate income taxes, Social Security taxes, or disability insurance.
An applicant who answers affirmatively to any item described in paragraph (8) shall provide, as part of the application, additional information on the unpaid amounts, including the name and address of the party owed, the amount owed, and any existing payment arrangements.
(9)CA Labor Code § 2061(9) Whether any persons named in response to subparagraphs (A), (B), or (C) of paragraph (6) of this section have ever been cited or assessed any penalty for violating any provision of the Labor Code.
An applicant who answers affirmatively to any item described in paragraph (9) shall provide additional information, as part of the application, on the date, nature of citation, amount of penalties assessed for each citation, and the disposition of the citation, if any. The application shall describe any appeal filed. If the citation was not appealed, or if it was upheld on appeal, the applicant shall state whether the penalty assessment was paid.
(b)CA Labor Code § 2061(b) The employer has paid a registration fee to the commissioner pursuant to subdivision (d) of Section 2055.

Section § 2062

Explanation

If an employer hasn't fully paid off certain debts, they can't register or renew their business registration. This includes unpaid wages owed to employees, any overdue payments for unemployment insurance, or unpaid Social Security and Medicare taxes. Until these financial obligations are cleared, the employer cannot move forward with registration.

The commissioner may not register or renew the registration of an employer in any of the following circumstances:
(a)CA Labor Code § 2062(a) The employer has not fully satisfied any final judgment for unpaid wages due to an employee or former employee of a business for which the employer is required to register under this chapter.
(b)CA Labor Code § 2062(b) The employer has failed to remit the proper amount of contributions required by the Unemployment Insurance Code or the Employment Development Department had made an assessment for those unpaid contributions against the employer that has become final and the employer has not fully paid the amount of delinquency for those unpaid contributions.
(c)CA Labor Code § 2062(c) The employer has failed to remit the amount of Social Security and Medicare tax contributions required by the Federal Insurance Contributions Act (FICA) to the Internal Revenue Service and the employer has not fully paid the amount or delinquency for those unpaid contributions.

Section § 2063

Explanation

This section requires the Labor Commissioner to maintain a publicly available list on the Department of Industrial Relations website, featuring all registered car washing and polishing businesses. The list must include each business's name, address, registration number, and the dates that their registration is valid.

On the Web site of the Department of Industrial Relations the Labor Commissioner shall post a list of registered car washing and polishing businesses, including the name, address, registration number, and effective dates of registration.

Section § 2064

Explanation

If an employer doesn't register as required when running a car washing or polishing business, they can be fined $100 for each day they operate without registration, up to a total of $10,000.

An employer who fails to register pursuant to Section 2054 is subject to a civil fine of one hundred dollars ($100) for each calendar day, not to exceed ten thousand dollars ($10,000), the employer conducts car washing and polishing while unregistered.

Section § 2065

Explanation

This section explains the establishment and use of two funds related to the car wash industry: the Car Wash Worker Restitution Fund and the Car Wash Worker Fund. The Restitution Fund gathers money from certain fees and fines, and is used to compensate car wash workers who are not paid what they are owed due to violations by employers. The Labor Commissioner can distribute money from this fund to the affected workers, following specific procedures, and any recovered money must be returned to the fund. The Worker Fund collects another set of fees and fines, and is used to cover administrative and enforcement costs related to the car washing industry. The Department of Industrial Relations can create regulations to execute these rules effectively.

(a)CA Labor Code § 2065(a) The Car Wash Worker Restitution Fund is established in the State Treasury.
(1)CA Labor Code § 2065(a)(1) The following moneys shall be deposited into this fund:
(A)CA Labor Code § 2065(a)(1)(A) The annual fee required pursuant to subdivision (b) of Section 2059.
(B)CA Labor Code § 2065(a)(1)(B) Fifty percent of the fines collected pursuant to Section 2064.
(C)CA Labor Code § 2065(a)(1)(C) Pursuant to subdivision (b) of Section 2059, an amount equal to 20 percent of the initial registration fee required pursuant to subdivision (a) of Section 2059.
(2)CA Labor Code § 2065(a)(2) Upon appropriation by the Legislature, the moneys in the fund shall be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay wages and penalties and other damages by any employer.
(A)CA Labor Code § 2065(a)(2)(A) In making this determination, the Labor Commissioner shall disburse amounts from the fund to ensure the payment of wages, interest, and any damages or other monetary relief arising from the violation of orders of the Industrial Welfare Commission or from a violation of this code, including statutory penalties recoverable by an employee, determined to be due to a car wash worker as a result of a violation of this code by a registered or unregistered car wash business.
(B)CA Labor Code § 2065(a)(2)(B) Any disbursement shall be made pursuant to a claim for recovery from the fund in accordance with procedures prescribed by the Labor Commissioner.
(C)CA Labor Code § 2065(a)(2)(C) Any disbursed funds subsequently recovered by the Labor Commissioner from a liable party pursuant to an assignment of the claim to the commissioner for recovery of due amounts, including recovery from a surety under a bond pursuant to Section 2055, or which are otherwise recovered by the Labor Commissioner from a liable party, shall be returned to the fund.
(b)CA Labor Code § 2065(b) The Car Wash Worker Fund is established in the State Treasury.
(1)CA Labor Code § 2065(b)(1) The following moneys shall be deposited into this fund:
(A)CA Labor Code § 2065(b)(1)(A) Fifty percent of the fines collected pursuant to Section 2064.
(B)CA Labor Code § 2065(b)(1)(B) The initial registration fee required pursuant to subdivision (a) of Section 2059, less the amount specified in subparagraph (C) of paragraph (1) of subdivision (a).
(2)CA Labor Code § 2065(b)(2) Upon appropriation by the Legislature, the moneys in this fund shall be applied to all direct and indirect costs incurred by the commissioner in administering this part and all direct and indirect costs of enforcement and investigation of the car washing and polishing industry.
(c)CA Labor Code § 2065(c) The Department of Industrial Relations may establish by regulation those procedures necessary to carry out this section.