Car wash or polishing bond cost
As of January 1, 2014, the California Department of Industrial Relations’ Division of Labor Standards Enforcement requires car washes in the state to post $150,000 surety bonds prior to conducting business.
The amount you’ll pay for your car wash bond depends directly on your personal credit report and your financial credentials. Applicants with credit scores at or near 700 can expect to pay a premium of 1-5% of the bond amount, or $1,500-7,500. Providing financial credentials upfront can help ensure that you’ll pay the lowest rate possible for your bond. Contact an expert surety specialist for your free, no-obligation bond quote!
Why 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.
Car wash bond details
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.
Start a car wash
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. Take the first step toward becoming registered in California by purchasing the car wash bond you need!
Apply for your surety bond
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