California Car Wash Bond Overview
- Purpose: To guarantee payment of car wash employees in California
- Who Needs It: Car wash owners in California
- Regulating Body: The Department of Industrial Relations
- Bond Amount: $150,000
- Minimum Price: 1% or $1,500
What Is a California Car Wash Bond?
A California car wash bond is a financial guarantee that car wash owners will pay employees according to California Labor Code. The California Department of Industrial Relations (DIR) requires this bond to protect employees if a car wash doesn’t pay wages, interests or provide appropriate fringe benefits.
Who Needs a Car Wash Bond?
If your business offers car washing and polishing services, you need a $150,000 surety bond to guarantee payment for workers’ labor.
If you operate a mobile car wash business in the City of Santa Maria, you’ll need an additional $20,000 surety bond for licensing.
How Much Do Car Wash Bonds Cost in California?
A $150,000 California car wash bond has a starting premium of $1,500. Typically, qualifying applicants pay just 1–3% of the bond amount. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a California Car Wash Bond Work?
When you get a car wash bond, you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1) Principal | You, the car wash owner |
| 2) Obligee | The Department of Industrial Relations |
| 3) Surety | The issuing surety provider |
If you fail to compensate employees per California Labor Code §13693, workers can file a bond claim. The surety will pay for valid claims and you must reimburse the surety.
How Do I Get a Car Wash Bond?
Get your California car wash bond by following these simple steps:
- Fill out the application form on this page.*
- Apply for a quote.
- Pay the premium.
- File your bond with the DIR.
*Note: You must provide information such as your number of employees, average monthly payroll and if you use a third-party payroll service.
How Fast Can I Get My Bond?
We provide free quotes in under one business day. However, the DIR requires you to physically file the original bond form.
So, you’ll receive your bond form in the mail via your selected shipping method at checkout. We offer overnight, two-day and three-day shipping.
How Do I File My Bond?
File your bond with the Division of Labor Standards Enforcement at the following address:
Division of Labor Standards Enforcement
Licensing and Registration Unit
1515 Clay Street
Suite 401
Oakland, CA 94612
Can I Get Bonded With Bad Credit?
We approve 99% of applications. However, if you’re concerned about qualifying, read about our Bad Credit Options.
How Do I Renew My Bond?
California car wash bonds expire annually. You can renew your bond online or over the phone starting 90 days before the expiration date. We’ll send periodic email and text reminders in advance.
Can I Update My Bond Information?
You can request to update your bond information by contacting our Customer Care team:
- 1(800)308-4358
- [email protected]
Small fixes like name and address can be made with a bond rider. However, larger updates may require a new bond form.
How to Get a Car Wash Business Registration in California
All California car wash businesses must register with the DIR. You can complete an application online or by mail. Application materials you must submit include, but are not limited to, the following:
- Copies of business-specific documents
- A sample contract
- Proof of workers’ compensation coverage
- Proof of compliance
- Completed 8821 tax form
- A $150,000 surety bond
- $300 registration and assessment fee per location
Learn more about How to Get a Car Wash License in California in our step-by-step guide.
