What is a California Car Wash Bond?
A California car wash bond must be purchased before a car wash can legally begin conducting business in the state. Unlike most traditional license and permit surety bonds, the California car wash bond is designed to ensure car wash owners are properly paying the wages and benefits due to employees.
Who Needs a California Car Wash Bond?
The California Department of Industrial Relations’ Division of Labor Standards Enforcement requires a California car wash bond before any car wash can be licensed to do business and legally hire employees.
Why Do I Need a California Car Wash Bond?
California car wash bonds ensure that the business pays all earned wages, interest on salaries, and fringe benefits due to employees according to the California Labor Code (Sections 351-353). These bonds are not like most surety bonds, which are designed to protect the general public.
To open a car wash, business owners must register the facility with the Labor Commissioner. Applications for opening a car wash can be downloaded online or requested by mail.
How Much Does a California Car Wash Bond Cost?
The California Department of Industrial Relations’ Division of Labor Standards Enforcement requires a car wash bond of $150,000 before being able to conduct business. The cost of this bond varies depending on various factors, including the credit rating of the principal. Generally speaking, the principal can expect to pay between 1-5% for their California car wash bond.
California car wash bonds are continuous in nature and do not expire after a set period. Once purchased, the bond will remain valid until it is terminated or canceled.
Get Started Today!
To receive proper licensing to operate a car wash in California, you must first secure a car wash bond. Don’t delay your application. Begin by getting your quote today.