New York City Car Wash Bond

A recent by a superior court of New York has affirmed New York City's enhanced surety bonding requirements of non-unionized car wash operations within its licensing jurisdiction. Chapter 20-542 of the NYC Rules states that unless the principal is a party to a current and bona fide collective bargaining agreement with a collective bargaining representative of its employees, which specifically provides for the timely payment of wages and an expeditious process to resolve disputes concerning nonpayment or underpayment of wages, that the operator must provide a New York City car wash bond in the amount of one hundred fifty thousand dollars ($150,000). The surety bond must run to the city of New York and be approved as to form by the city commissioner. The surety bond required by rule must be conditioned upon the car wash's compliance with the provisions of the license subchapter and any rules promulgated thereunder, and satisfaction of specifically:

• Any fine, penalty or other obligation to the city within thirty days of the imposition of such fine, penalty or obligation;
• Any final judgment recovered by any person who received car wash services from a licensee thereunder and was damaged thereby within thirty days of such judgment; and
• Any final judgment recovered by any employee of the licensee for nonpayment or underpayment of wages within thirty days of such judgment.

An owner or operator that fails to file a New York City car wash bond is liable for a civil penalty of one hundred dollars ($100) per day for every calendar day during which the unlicensed car wash operated. The "Car Wash Accountability Law" defines a car wash as "an individual, partnership, corporation, limited liability company, joint venture, association, or other business entity that engages in the cleaning of vehicles, including washing, detailing, drying, polishing, vacuuming or otherwise providing cosmetic care to vehicles." There are few exemptions from licensing under the rule. Questions about implementation of the New York City car wash bond and licensing rules should be directed to the Department of Consumer Affairs.

New York surety bond leader, Surety One, Inc. is a specialist in providing for the bonding needs of car wash operators in New York City and the State of California. We offer this class of surety bond to all applicants in every state where bonding is required.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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