In California, employers who operate car washes are required by law to maintain a $150,000 surety bond with the Department of Industrial Relations, Division of Labor Standards Enforcement. This surety bond is put in place to ensure that employee wages, interest on wages, fringe benefits and all gratuities are paid, as required under Section 351 and/or 353 of California Labor Code. If the employee is not paid accordingly, a claim can be placed on the bond for reimbursement. “Car washing” includes the washing, cleaning, drying, polishing, detailing, servicing or otherwise providing cosmetic care of vehicles.
In addition to the application, the state may require the following items to be uploaded:
- Copy of your business license
- Copy of your Statement of Information
- Copies of your FEIN and SEIN documents
- Workers Compensation Insurance and Bond documents
- Copy of your Fictitious Business Name Statement
- Copy of your endorsed Articles of Incorporation/Articles of Organization/Certificate of Limited Partnership
- Copy of your Client Service Agreement if contracting with an employee leasing company
- Copy of your Collective Bargaining Agreement (CBA)
There is also a $250 registration fee and $50 assessment fee for each location that will need to be paid for online. Additional instructions for new and renewal applicants can be found here.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.