ARTICLE 2. Bonds and Photographs [400. - 410.]

Cal. Labor Code - LAB 2.
in effect

Cal. Labor Code - LAB § 401. Section 401.

If a bond or photograph of an employee or applicant is required by any employer, the cost thereof shall be paid by the employer.

Cal. Labor Code - LAB § 402. Section 402.

No employer shall demand, exact, or accept any cash bond from any employee or applicant unless: (a) The employee or applicant is entrusted with property of an equivalent value, or (b) The employer advances regularly to the employee goods, wares, or merchandise to be delivered or sold by the employee, and for which the employer is reimbursed by the employee at regular periodic intervals, and the employer limits the cash bond to an amount sufficient to cover the value of the goods, wares, or merchandise so advanced during the period prior to the payment therefor.

Cal. Labor Code - LAB § 403. Section 403.

If cash is received as a bond it shall be deposited in a savings account in a bank authorized to do business in this State, and may be withdrawn only upon the joint signatures of the employer and the employee or applicant. Cash put up as a bond shall be accompanied by an agreement in writing made by the employer and employee or applicant, setting forth the conditions under which the bond is given.

Cal. Labor Code - LAB § 404. Section 404.

Any money put up as a bond under Sections 401, 402 and 403: (a) Is not subject to enforcement of a money judgment except in an action between the employer and the employee or applicant, or their successors or assigns. (b) Shall be returned to the employee or applicant together with accrued interest thereon, immediately upon the return of the money or property entrusted to the employee or applicant and upon the fulfillment of the agreement, subject only to the deduction necessary to balance accounts between the employer and employee or applicant.

Cal. Labor Code - LAB § 405. Section 405.

Any property put up by any employee or applicant as a bond shall not be used for any purpose other than liquidating accounts between the employer and employee or for return to the employee or applicant and shall be held in trust for this purpose and not mingled with the property of the employer. No contract between the employer and employee or applicant shall abrogate the provisions of this section. Any employer or prospective employer, or agent or officer thereof, who misappropriates any such property, mingles it with his own, or uses it for any other purpose than that herein set forth is guilty of theft and shall be punished in accordance with the provisions of the Penal Code relating to theft.

Cal. Labor Code - LAB § 406. Section 406.

Any property put up by an employee, or applicant as a part of the contract of employment, directly or indirectly, shall be deemed to be put up as a bond and is subject to the provisions of this article whether the property is put up on a note or as a loan or an investment and regardless of the wording of the agreement under which it is put up.

Cal. Labor Code - LAB § 407. Section 407.

Investments and the sale of stock or an interest in a business in connection with the securing of a position are illegal as against the public policy of the State and shall not be advertised or held out in any way as a part of the consideration for any employment.

Cal. Labor Code - LAB § 408. Section 408.

Any person or agent or officer thereof, who violates any provision of this article, except the provisions of Section 405, is guilty of a misdemeanor, punishable by a fine of not less than fifty dollars ($50) and not exceeding one thousand dollars ($1,000), or imprisonment for not exceeding six months, or both.

Cal. Labor Code - LAB § 409. Section 409.

All fines imposed and collected under this article shall be paid into the State treasury and credited to the general fund.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026

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