A Car Wash Surety Bond is a license and permit surety bond required by certain government jurisdictions of car washing/polishing companies. The bond guarantees that the owner will pay their employees at least minimum wages, interest on wages, or fringe benefits as well as cover any damages by a violation of that jurisdiction’s labor codes. If an employee feels the owner is not following the regulations that require the bond, they can make a claim on the bond. Employees covered by this bond include minors and aliens who work for car washing or polishing companies.
As of 2019, California and New York City require car wash bonds.
All car washes in the State of California must obtain a $150,000 bond, according to the Department of Industrial Relations.
New York City
The Car Wash Accountability Law requires that anyone applying for a car wash license to get a $150,000 surety bond or a $30,000 if entered into a settlement with a state or federal government agency and are covered by an active monitoring agreement