Update: Effective December 4, 2017, all New York City car washes are required to have a surety bond in an amount of $150,000. For more information, see our recent blog post or visit our dedicated NYC car wash bond page to get your free, no obligation surety bond quote.
The implementation of New York City’s Car Wash Accountability Act, set to take effect December 26, 2015, has been delayed. The delay comes as the result of a lawsuit filed last month by the city’s Association of Car Wash Owners. The new law includes, among other rules, requirements for car wash owners to post a $150,000 surety bond in order to become licensed. Unionized car wash owners would have to post only a $30,000 bond. The large price discrepancy led to the lawsuit, with car wash owners claiming that it was extortion and discriminated against non-unionized businesses.
The Department of Consumer Affairs will draft and promote a new set of regulations governing the industry, focusing on worker safety and the disposal of chemicals used at car washes. NYC Law Department spokesperson Nick Paolucci said, “The parties have agreed that it makes more sense to wait until the city promulgates the rules that implement the car wash law before proceeding in the litigation.”
The Surety Bond Insider first covered the lawsuit when it was filed last month and will continue coverage as it progresses. Contact us with any questions about becoming bonded in New York.
