Janitorial Registration Frequently Asked Questions
- When are janitorial service providers required to register with the Labor Commissioner’s Office?
- Who must register as a janitorial service provider or contractor?
New registration requirements of the Property Service Workers Protection Act go into effect beginning July 1, 2018. Janitorial service providers and contractors must register by October 1, 2018 to comply with the law and avoid incurring penalties. The registration is valid for one year and must be renewed annually by the month and day of the original registration’s issuance.
Anyone 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 must register yearly with the Labor Commissioner’s Office.
Examples of businesses required to register:
- A janitorial service provider that employs office staff to manage the business, and janitors to service the buildings of the provider’s clients.
- A janitorial contractor that employs janitors to perform janitorial services for some clients, and hires franchisees to perform janitorial services for other clients.
- A janitorial service provider that employs a bookkeeper and engages independent contractors to perform janitorial work at clients’ buildings.
- A staffing agency that employs employees to meet a variety of labor needs for its clients, including janitors who perform janitorial work.
- A janitorial broker that employs administrative staff in its office and contracts with janitorial businesses to provide janitorial services to clients, which are performed by covered workers.
Examples of businesses not required to register:
- A janitorial contractor that does not employ any employees (even non-janitorial employees), and contracts with other businesses to perform janitorial services for clients.
Note: The statutory definition of “employer” in Labor Code section 1420(e)(1) does not contain exceptions for certain types of janitorial services providers. The Labor Commissioner’s Office has received numerous inquiries about whether certain entities, such as a professional employer organization (PEO) or a non-profit organization are required to register. Any entity that meets the statutory definition of “employer” shown above is required to register. However, see FAQ below regarding public entities.
A covered worker is any individual working predominantly as a janitor, whether as an employee, independent contractor, or a franchisee. The term janitor is defined in the Service Contract Act Directory of Occupations maintained by the United States Department of Labor (Labor Code Section 1420(a)(1)).
The fee is $500. First time applicants must pay a nonrefundable $500 application fee. Applications will not be processed without proper payment. The fee covers the cost of administering and enforcing the janitorial registration program.
Janitorial service providers and contractors must register by October 1, 2018 to comply with the law and avoid incurring penalties.
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 $500
Gather the required documents before beginning the registration process, including copies of:
- 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 valid workers’ compensation insurance certificate or Certificate of authority to self-insure.
Questions that must be answered during the registration process include:
- Does your business owe:
- Unpaid wages
- Unpaid judgments
- Payroll taxes
- Personal, partnership, or corporate income taxes,
- Social security taxes
- Disability insurance
- Does your business have liens or suits pending in court?
- Has your business ever been cited or assessed any penalty for violation of the California Labor Code?
- Has your business paid for any unpaid contributions required by the Unemployment Insurance Code or the Employment Development Department?
- Has your business paid for any unpaid contributions required by the Federal Insurance Contributions Act or the Internal Revenue Service?
The registration is valid for one year and must be renewed annually by the month and day of the original registration’s issuance. The registration holder will receive notice from the Labor Commissioner’s Office 60 days before their registration expires.
Yes. In addition to existing recordkeeping requirements, every employer must keep accurate records for three years showing all of the following:
- Names and addresses of all employees engaged in rendering actual services for any business of the employer.
- The hours worked daily by each employee, including the time the employee begins and ends each work period.
- The wage and wage rate paid each payroll period.
- The age of all minor employees.
- Any other conditions of employment.
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.
The Labor Commissioner’s Office interprets the law to apply only to private persons or entities. There is no specific language stating that the law applies to public entities, nor is there evidence of the Legislature’s intent to include such governmental entities.
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