Wage and Hour

January 2010Newsletters California UPDATE Employment Law

Workin’ at the Carwash Blues

The California Labor Commissioner is cracking down on car wash operators for wage and hour violations and failure to provide workers’ compensation insurance. During a week-long sweep, 40 investigators inspected car washes in 25 counties. The Labor Commissioner issued 140 citations against more than 100 businesses and levied fines of almost $1 million.

Liability for Subcontractors

California businesses need to remember that they can be liable for the wage and hour violations of janitorial and security guard subcontractors. Labor Code § 2810 creates such liability where the business “knows or should know” that an arrangement with a janitorial or security guard contractor “does not include funds sufficient to allow the contractor to comply with all applicable…laws or regulations governing the labor involved.” There is a safe harbor, rebuttable presumption where a written agreement with the contractor has detailed assurances of compliance. Contracts with janitorial and security firms should be reviewed to assure compliance with § 2810.