License & Permit
Car Wash Bond (California)
A bond California requires from car wash and polishing employers so workers can collect unpaid wages.
- Required by
- California Labor Commissioner (Division of Labor Standards Enforcement)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond, required by California Labor Code 2055(b), runs to the People of the State of California. It promises the car wash will pay employees their earned wages, interest, and benefits when due, and damages for tip violations under Labor Code 351 and 353. Unpaid workers or the Labor Commissioner can claim on the bond.
Who needs it
- Car wash and car polishing businesses in California registering with the Labor Commissioner
What the underwriter looks at
- Owner's personal credit
- Payroll size
- Wage claim history
- Business financial statements
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond?
Secondary sources and a 2023 appellate case cite $150,000. The Labor Commissioner can require more based on factors such as past wage violations.
Is any car wash exempt?
Sources report an exemption for employers covered by a valid collective bargaining agreement. Confirm with the Labor Commissioner.