The California Department of Industrial Relations also goes by the acronym DIR. Over 18 million wage earners depend on DIR to protect and improve their health, safety, and economic well-being by helping their employers comply with state labor laws. The department works with Cal/OSHA, the Labor Commissioner’s Office, the Division of Workers’ Compensation, and the Office of Self Insurance Plans to issue licenses and permits.
Oftentimes, these permits and licenses require a surety bond before they become legally binding. The surety bond ensures that the permit or license holder will obey all laws and regulations required of a professional who carries that license or permit. If, for whatever reason, the person is unable to follow the laws and or regulations, the surety bond can act as a first line of defense against the people who were negatively impacted by the acts of breaking the laws or regulations.
Common types of surety bonds that the California Department of Industrial Relations requires include:
California Farm Labor Contractor Bond
After applicants complete the exam and education requirements, among other obligations, a person must first obtain a Farm Labor Contractor Bond before they can be licensed in the state of California. This bond is used to help guarantee payment of wages will be sent to any and all farm laborers. The bond varies depending on how high the company’s payroll is. This could be anywhere between $25,000 and $75,000 or more.
California Car Wash Bond
A Car Wash Bond is required for any business that wishes to open a car wash. This includes any business that offers washing and polishing services. The bond amount must be a minimum of $150,000 per location. There are ways to waive the bond requirements. A company that repairs vehicles or conducts the services as part of a charitable organization is exempt from needing a Car Wash Bond. Additionally, any dealer or rental car company that polishes and washes vehicles as part of its primary business does not need a Car Wash Bond.