We’re glad to address other questions you may have about laws impacting your business (like the bond requirement) or the collective bargaining agreement. Just tell us when you fill out this form.
What the Surety Bond Requirement Says…
The car wash is required to “file a copy of the bond with the commissioner” of the DSLE. Finally, the law provides that a car wash “may not conduct any business until the [car wash] obtains a new surety bond and files a copy of it with the commissioner.”The new Car Wash Worker Law that went into effect on January 1, 2014, continues to require all California car washes to register with the State Department of Labor Standards Enforcement (DSLE). It further provides that no car wash can register or renew its registration (as required annually) unless it has “obtained a surety bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be not less than one hundred fifty thousand dollars ($150,000).”
The purpose of the bond requirement is to insure that workers who are not paid in accordance with law can be compensated if their employer disappears or is otherwise unable to pay wages or benefits owed the employees. The law provides that the bond “shall be for the benefit of any employee damaged by his or her [car wash] employer’s failure to pay wages, interest on wages, or fringe benefits” or tips as required by law.
…And Here’s The Surety Bond Exception for Carwashes that are Party to a Collective Bargaining Agreement
The law creates an exception to the bond requirement for car washes that are party to collective bargaining agreements containing terms that protect workers against nonpayment of wages. The law provides that the bond requirement “shall not apply to [a car wash] employer covered by a valid collective bargaining agreement, if the agreement expressly provides for all of the following: (A) Wages. (B) Hours of work. (C) Working conditions. (D) An expeditious process to resolve disputes concerning nonpayment of wages.”
A valid collective bargaining agreement is an agreement entered into between a car wash employer and a bona fide union, i.e., not one that is created or dominated by the employer. A qualifying agreement must create an expeditious process to resolve disputes concerning nonpayment of wages. Most collective bargaining agreements create such a process in the form of a grievance procedure through which employees or their union can file a grievance concerning nonpayment of wages with the car wash employer.
If the parties cannot resolve the dispute between themselves through the grievance procedure, most collective bargaining agreements provide for final and binding resolution by an impartial arbitrator. This process is far quicker and less expensive than litigation and satisfies the requirement of the Car Wash Workers Law.
The law provides that a car wash “may not conduct any business until the [car wash] obtains a new surety bond and files a copy of it with the commissioner.”
If you are a carwash owner and want more information about the collective bargaining agreement, you can fill out this form.
You can download a PDF copy of this information here.
Together, we can all create “A Better Carwash” for consumers, workers, communities and owners.