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How much does a $150,000 car wash bond cost in California?
The California Department of Industrial Relations’ Division of Labor Standards Enforcement requires car washes in the state to post surety bonds prior to conducting business. Applicants with a strong credit report could qualify for rates as low as $1,500.
If you’re ready to become bonded quickly, easily and accurately, call SuretyBonds.com at 1 (800) 308-4358 or click here to fill out an online bond request form now. You’ll be connected with an expert surety specialist who will walk you through each step of our fast and easy bonding process.
Why do I need this bond?
California car wash surety bonds are put in place to ensure that principals (car washes) pay all earned wages, interest on wages and fringe benefits due to employees according to Sections 351 and/or 353 of the California Labor Code. If the principal fails to pay all sums appropriately, the bond protects harmed parties from financial loss up to the full penal sum of the bond ($150,000). The principal must reimburse the surety for all damages paid out.
What’s the fine print?
Car wash bonds in California are more like wage and welfare surety bonds rather than traditional license and permit bonds.
These bonds are continuous in nature and remain in full force and effect unless terminated or canceled.
The surety can cancel the bond in accordance with Article 13 of Chapter 2, Title 14, Part 2 of the Code of Civil Procedure.
How to start a car wash in California
Every person engaged in the business of car washing and polishing must register with the Labor Commissioner. To becoming registered, applicants must complete and submit an application package and pay all required fees.
Application packages can be downloaded online, picked up in person at the Division of Labor Standards Enforcement office in San Francisco, or requested by mail. Required fees vary depending on whether the application is new or a renewal and how many branches the applicant operates.