CA Lab Code Section 2055


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.
Last Updated

Aug. 19, 2023

§ 2055’s source at ca​.gov