Editor's Note: This story was updated June 2 to correct an error stating the Division of Labor Standards Enforcement had not yet submitted its report examining the effectiveness of the enforcement program related to the Car Wash Worker Law, as documented in the assembly's bill analysis. The DSLE report was distributed to the legislature on May 4. The report is viewable online at the DSLE Web site.
California’s Car Wash Worker Law took a step closer to permanency May 28 when a bill that would eliminate its expiration date passed the state assembly’s Committee on Appropriations in a 12-5 vote. The bill (AB 236) will now move to a full assembly vote where it is expected to pass.
Currently set to expire Jan. 1, 2010, the Car Wash Worker Law requires specific record-keeping with regard to carwash employee wages, hours worked and working conditions. In addition, the law requires carwashes and “polishing” businesses to register with the state labor commissioner and post a wage surety bond. A carwash worker fund also was established to use paid penalties and registration fees for disbursement to employees of carwashes found to be in violation of the law.
The law’s expiration date has been extended twice, but the new bill would make the statute permanent. One potential road block could be California’s financial situation. With the state in economic crisis, the assembly will have to determine if the cost to enforce the Car Wash Worker Law makes long-term sense.
The law costs the state’s Division of Labor Standards Enforcement (DLSE) about $650,000 a year in staff expenditures, according to bill documents. However, the appropriations committee determined the fiscal effect to be “minor and absorbable costs due to industry fees.”
The California Labor Commissioner’s Office recently issued more than $770,000 in fines to carwash businesses for labor law violations discovered during a statewide sweep. In all, 66 of the 88 employers cited failed to register or renew registration of their carwash with the state, officials said. In addition, 44 carwash businesses failed to carry workers’ compensation insurance. Investigators conducted 231 inspections in 29 counties on April 29 and 30.
California carwash operations were fined more than $3.8 million in 2008. Labor officials conducted 576 carwash inspections statewide last year, issuing 519 citations. Top violations included failure to register with the state and failure to carry workers’ compensation insurance.
According to a DSLE report examining the effectiveness of its enforcement program, the total amount of assessed fines dropped dramatically from 2007, when carwashes were fined more than $6.8 million. The number of registration citations fell from 408 in 2007 to 274 last year. Officials conducted 17 more inspections last year than in 2007.
Contrary to an earlier report, the DSLE's findings were distributed to the legislature May 4. The division's report was supposed to have been issued by Dec. 31, 2008. The public can view the report online at the DSLE Web site.
There are currently 1,049 carwash locations registered, according to a spreadsheet available for download on the Web site for California's Department of Industrial Relations. The site also features an explanation of registration requirements and procedures.
Self-service and automated carwashes that have employees only for cashiering or maintenance purposes are exempt. The law also exempts charity groups, rental car agencies, automotive dealers and car repair businesses that offer ancillary carwash services. All other businesses that employ anyone to provide carwash and/or vehicle polishing services as part of their operations must be registered with the state.
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