California Code of Regulations
Title 8 - Industrial Relations
Division 1 - Department of Industrial Relations
Chapter 6 - Division of Labor Standards Enforcement
Subchapter 14 - Foreign Labor Contractor Registration
Article 2 - Registration
Section 13857 - Surety Bond; Establishing Gross Income Receipts

Universal Citation: 8 CA Code of Regs 13857

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) The applicant shall file with the Labor Commissioner a bond issued by a surety company duly authorized to do business in the State of California. The bond shall be on a form provided by the Labor Commissioner (DLSE 702, revised 5/2018), which is hereby incorporated by reference, issued by a surety company authorized to issue bonds in California which complies with the requirements of Business and Professions Code section 9998.1.5(b)(3).

(b) Amount of Bond.

(1) In determining the amount of the bond, the foreign labor contractor shall provide to the Labor Commissioner the total amount of gross receipts for the twelve (12) months prior to filing the application.

(2) For the purpose of this section, "gross receipts" means all amounts of income received by the applicant, in the form of money, promissory notes, credit, or any other items of value, for the sale or transfer of goods, or for services provided by the applicant or its employees. In determining gross receipts, the applicant shall not deduct from income receipts or adjust income receipts for any expenses, including but not limited to the cost of material, labor, services, storage, transportation, rent, utilities, interest on loans, insurance, taxes, and any business losses.

(3) An applicant shall, within a reasonable time and in no event more than fifteen (15) days from the date of a request, provide any documents deemed necessary by the Labor Commissioner for verifying gross income receipts. Failure to provide the requested documentation or providing any false and misleading information concerning gross income receipts shall constitute grounds for denial of the application or renewal of registration.

(c) If the Labor Commissioner, a foreign worker or a foreign worker's representative, proceeds against the surety bond and payment is made therefrom to the Labor Commissioner or to the foreign worker or foreign worker's representative, within 60 days the registrant shall take all steps and actions necessary to ensure that a surety bond which meets all of the requirements set forth in subdivision (a) of this section, including the required principal sum, is continuously in place so that there is not a break at any time in the continuity of the protection afforded by the bond. If the registrant at any time fails to provide a surety bond that meets all of the requirements of subdivision (a) of this section, the Labor Commissioner shall suspend and may revoke the registrant's registration, or deny an application to renew registration.

(d) In the event a contractor closes its business and ceases operating as a foreign labor contractor, the Labor Commissioner will retain the bond in his or her possession for no more than six months after the employer ceases engaging in the business in order to provide for claims arising prior to the closure of the business.

1. New section filed 10-8-2018; operative 1-1-2019 (Register 2018, No. 41).

Note: Authority cited: Section 9998.11, Business and Professions Code. Reference: Sections 9998, 9998.1.5, 9998.2.5, 9998.3, 9998.4, 9998.5, 9998.6, 9998.7 and 9998.11, Business and Professions Code.

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