Janitorial Registration – Property Service Workers Protection Act

The Property Service Workers Protection Act is a law that went into effect January 1, 2017 to protect janitors against wage theft and sexual harassment. The Act has three parts: record keeping, registration with the Labor Commissioner’s Office, and sexual harassment training.

The Act requires all janitorial employers to:

  1. Keep detailed records for three years (see below for details);
  2. Register with the Labor Commissioner’s Office beginning July 1, 2018 but by no later than October 1, 2018 to comply with the law and avoid incurring penalties;  and
  3. Provide employees sexual harassment prevention training once every two years beginning January 1, 2019; as of July 1, 2018, employers covered by this part shall provide all covered workers with a copy of the Department of Fair Employment and Housing pamphlet DFEH-185, entitled “Sexual Harassment,” until the sexual violence and harassment prevention training requirement is established pursuant to Section 1429.5.

A janitorial contractor or employer who fails to register is subject to a civil fine of $100 for each calendar day that the employer is unregistered, not to exceed $10,000. Any person or entity that contracts for janitorial services with an employer not registered at the time the contract is executed, extended, renewed, or modified, is subject to a civil fine of $2,000 to $10,000 in the case of a first violation, and a civil fine of $10,000 to $25,000 for a subsequent violation.

Record Keeping

In addition to existing record keeping requirements, every employer must keep accurate records for three years showing all of the following:

  • The names and addresses of all employees who perform janitorial or cleaning services.
  • The hours worked daily by each employee, including the times the employee begins and ends each work period.
  • The wage and hourly rate paid each payroll period.
  • The age of all minor employees.
  • Any other conditions of employment.

Registration

Who Must Register

Every employer who provides janitorial services with at least one employee and one janitor must register with the Labor Commissioner. An “employer” is broadly defined as any person or entity that employs at least one employee and one or more covered workers and that enters into contracts, subcontracts, or franchise arrangements to provide janitorial services.

Steps to register & fee

The steps to register are: (1) gather the required documents and (2) complete the new application or renew your existing registration online or by mail. Register by mail and include payment to: Division of Labor Standards Enforcement, Registration Services, 1515 Clay Street, Suite 401, Oakland, CA 94612. Register online here: https://mycadir.force.com/registrations/CommunityLogin.

To register, employers must also pay a $500 nonrefundable application fee. The registration is valid for one year and must be renewed annually by the month and day of the original registration’s issuance. The renewal fee is also $500.

Required Documents:

Before you submit your application, you should have ready copies of the following required documents:

  • Fictitious Business Name Statement(s) (doing business as (DBA)) for any business name(s) you use or intend to use.
  • State Employer Identification Number (SEIN) or application for it.
  • Federal Employer Identification Number (FEIN) or application for it.
  • Articles of Incorporation, if you are a corporation.
  • Articles of Organization, if you are a limited liability company (LLC).
  • Certificate of Limited Partnership, if you are a limited partnership.
  • Secretary of State Statement of Information, if you are a corporation or LLC.

Proof of your workers’ compensation coverage – one of the following:

  • A valid workers’ compensation insurance certificate which must include the following:
    • The complete and correct name of the legal entity that is the insured employer, including fictitious business names and the complete and correct address for each location.
      • Identify the certificate holder as: Division of Labor Standards Enforcement
        Registration Services, 1515 Clay Street, Ste. 401, Oakland, CA 94612.
  • Certificate of authority to self-insure.
  • If contracting with an employee leasing company, a current workers’ compensation insurance certificate that is provided to you by the employee leasing company.

Contracting with an employee leasing company?

Employee leasing companies that engage in providing janitorial services must be registered with the Labor Commissioner.

  • If you are contracting with an employee leasing company, submit the following with your application:
    • A copy of your signed contract with the employee leasing company.
    • The employee leasing company’s valid workers’ compensation insurance certificate.

Contact our office if you have any questions or need any guidance while navigating the new process.

This article was authored by Kristina Kourasis, Esq.

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