Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
Every employer shall register with the commissioner annually.
Chapter 2 - Registration
California Labor Code — §§ 2054-2065
Sections (12)
Amended by Stats. 2014, Ch. 71, Sec. 110. (SB 1304) Effective January 1, 2015.
The commissioner shall not permit any employer to register, or to renew registration, until all of the following conditions are satisfied:
(a)The employer has applied for registration to the commissioner by presenting proof of compliance with the local government’s business licensing or regional regulatory requirements.
(b)The employer has obtained a surety bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall not be less than one hundred fifty thousand dollars ($150,000). The employer shall file a copy of the bond with the commissioner.
(1)The bond required by
this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employer’s failure to pay wages, interest on wages, or fringe benefits, or damaged by violation of Section 351 or 353.
(2)Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send written notice to both the employer and the commissioner, identifying the bond and the date of the cancellation or termination.
(3)An employer shall not conduct any business until the employer obtains a new surety bond and files a copy of it with the commissioner.
(4)This subdivision shall not apply to an employer covered by a valid collective bargaining agreement, if the agreement expressly provides for all of the
following:
(A)Wages.
(B)Hours of work.
(C)Working conditions.
(D)An expeditious process to resolve disputes concerning nonpayment of wages.
(c)The employer has documented that a current workers’ compensation insurance policy is in effect for the employees.
(d)The employer has paid the fees established pursuant to Section 2059.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
When a certificate of registration is originally issued or renewed under this chapter, the commissioner shall provide related and supplemental information to the registrant regarding business administration and applicable labor laws.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
Proof of registration shall be by an official Division of Labor Standards Enforcement registration form. Each employer shall post the registration form where it may be read by the employees during the workday.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
At least 30 days prior to the expiration of each registrant’s registration, the commissioner shall mail a renewal notice to the last known address of the registrant. However, omission of the commissioner to provide the renewal notice in accordance with this subdivision may not excuse a registrant from making timely application for renewal of registration, may not be a defense in any action or proceeding involving failure to renew registration, and may not subject the commissioner to any legal liability.
Amended by Stats. 2016, Ch. 31, Sec. 185. (SB 836) Effective June 27, 2016.
(a)(1) The commissioner shall collect from employers a registration fee for each branch location, and, except as provided in paragraph (2), may periodically adjust the registration fee, in an amount sufficient to fund all direct and indirect costs to administer and enforce this part.
(2)The fee established pursuant to paragraph (1) shall not be increased unless the published fund balance is projected to fall below 25 percent of annual expenditures.
(b)In addition to the fee in subdivision (a), each employer shall be assessed an annual fee in an amount equivalent to 20 percent of the registration
fee collected pursuant to subdivision (a) for each branch location that shall be deposited in the Car Wash Worker Restitution Fund.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
No employer may conduct any business without complying with the registration and bond requirements of this chapter.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
The commissioner may not approve the registration of any employer until all of the following conditions are satisfied:
(a)The employer has executed a written application, in a form prescribed by the commissioner, subscribed, and sworn by the employer containing the following:
(1)The name of the business entity and, if applicable, its fictitious or “doing business as” name.
(2)The form of the business entity and, if a corporation, all of the following:
(A)The date of incorporation.
(B)The state in which incorporated.
(C)If a foreign corporation, the date the articles of incorporation were filed with the California Secretary of State.
(D)Whether the corporation is in good standing with the Secretary of State.
(3)The federal employer identification number (FEIN) and the state employer identification number (SEIN) of the business.
(4)The business’ address and telephone number and, if applicable, the addresses and telephone numbers of any branch locations.
(5)Whether the application is for a new or renewal registration and, if the application is for a renewal, the prior registration number.
(6)The names, residential addresses, telephone numbers, and Social Security numbers of the following persons:
(A)All corporate officers, if the business entity is a corporation.
(B)All persons exercising management responsibility in the applicant’s office, regardless of form of business entity.
(C)All persons, except bona fide employees on regular salaries, who have a financial interest of 10 percent or more in the business, regardless of the form of business entity, and the actual percent owned by each of those persons.
(7)The policy number, effective date, expiration date, and name and address of the carrier of the applicant business’ current workers’ compensation coverage.
(8)Whether any persons named in response to subparagraphs (A), (B), or (C) of subparagraph (6) of this section presently:
(A)Owe any unpaid wages.
(B)Have unpaid judgments outstanding.
(C)Have any liens or suits pending in court against himself or herself.
(D)Owe payroll taxes, or personal, partnership, or corporate income taxes, Social Security taxes, or disability insurance.
An applicant who answers affirmatively to any item described in paragraph (8) shall provide, as part of the application, additional information on the unpaid amounts, including the name and address of the party owed, the amount owed, and any existing payment arrangements.
(9)Whether any persons named in response to subparagraphs (A), (B), or (C) of paragraph (6) of this section have ever been cited or assessed any penalty for violating any provision of the Labor Code.
An applicant who answers affirmatively to any item described in paragraph (9) shall provide additional information, as part of the application, on the date, nature of citation, amount of penalties assessed for each citation, and the disposition of the citation, if any. The application shall describe any appeal filed. If the citation was not appealed, or if it was upheld on appeal, the applicant shall state whether the penalty assessment was paid.
(b)The employer has paid a registration fee to the commissioner pursuant to subdivision (d) of Section 2055.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
The commissioner may not register or renew the registration of an employer in any of the following circumstances:
(a)The employer has not fully satisfied any final judgment for unpaid wages due to an employee or former employee of a business for which the employer is required to register under this chapter.
(b)The employer has failed to remit the proper amount of contributions required by the Unemployment Insurance Code or the Employment Development Department had made an assessment for those unpaid contributions against the employer that has become final and the employer has not fully paid the amount of delinquency for those unpaid contributions.
(c)The employer has failed to remit the amount of Social Security and Medicare tax contributions required by the Federal Insurance Contributions Act (FICA) to the Internal Revenue Service and the employer has not fully paid the amount or delinquency for those unpaid contributions.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
On the Web site of the Department of Industrial Relations the Labor Commissioner shall post a list of registered car washing and polishing businesses, including the name, address, registration number, and effective dates of registration.
Added by Stats. 2003, Ch. 825, Sec. 2. Effective January 1, 2004.
An employer who fails to register pursuant to Section 2054 is subject to a civil fine of one hundred dollars ($100) for each calendar day, not to exceed ten thousand dollars ($10,000), the employer conducts car washing and polishing while unregistered.
Amended by Stats. 2017, Ch. 28, Sec. 27. (SB 96) Effective June 27, 2017.
(a)The Car Wash Worker Restitution Fund is established in the State Treasury.
(1)The following moneys shall be deposited into this fund:
(A)The annual fee required pursuant to subdivision (b) of Section 2059.
(B)Fifty percent of the fines collected pursuant to Section 2064.
(C)Pursuant to subdivision (b) of Section 2059, an amount equal to 20 percent of the initial registration fee required pursuant to subdivision (a) of Section 2059.
(2)Upon appropriation by the Legislature, the moneys in the fund shall
be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay wages and penalties and other damages by any employer.
(A)In making this determination, the Labor Commissioner shall disburse amounts from the fund to ensure the payment of wages, interest, and any damages or other monetary relief arising from the violation of orders of the Industrial Welfare Commission or from a violation of this code, including statutory penalties recoverable by an employee, determined to be due to a car wash worker as a result of a violation of this code by a registered or unregistered car wash business.
(B)Any disbursement shall be made pursuant to a claim for recovery from the fund in accordance with procedures prescribed by the Labor Commissioner.
(C)Any disbursed funds
subsequently recovered by the Labor Commissioner from a liable party pursuant to an assignment of the claim to the commissioner for recovery of due amounts, including recovery from a surety under a bond pursuant to Section 2055, or which are otherwise recovered by the Labor Commissioner from a liable party, shall be returned to the fund.
(b)The Car Wash Worker Fund is established in the State Treasury.
(1)The following moneys shall be deposited into this fund:
(A)Fifty percent of the fines collected pursuant to Section 2064.
(B)The initial registration fee required pursuant to subdivision (a) of Section 2059, less the amount specified in subparagraph (C) of paragraph (1) of subdivision (a).
(2)Upon appropriation by the Legislature, the moneys in this fund shall be applied to all direct and indirect costs incurred by the commissioner in administering this part and all direct and indirect costs of enforcement and investigation of the car washing and polishing industry.
(c)The Department of Industrial Relations may establish by regulation those procedures necessary to carry out this section.