New York law regulating carwashes ruled illegal - Professional Carwashing & Detailing

New York law regulating carwashes ruled illegal

NEW YORK — A federal judge stated that the law promoted unionization.

NEW YORK — According to The New York Times, on May 31st, a federal judge ruled that a law passed in June 2015 designed to regulate carwash businesses violated federal law because it urged unionization.

The law had not yet gone into effect, as it was pending the judge’s ruling, the article noted.

The ruling also impacts Mayor Bill de Blasio’s initiatives to further protect low-wage carwash employees, the article continued.

Judge Alvin K. Hellerstein of Federal District Court in Manhattan stated that the requirement that carwash owners purchase a special bond as part of the licensing process — costing $30,000 for those with unionized workers or who agreed to monitoring and $150,000 for all others — “explicitly encourages unionization, and therefore impermissibly intrudes on the labor-management bargaining process,” the article noted.

Federal labor law prohibits states from interfering in employer-employee negotiations, the article added.

While between 100 to 200 carwashes operate throughout New York City, the article stated, fewer than 10 percent are unionized.

Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union — which represents carwash workers — argued that the intention of the law was not to promote unionization, but rather to prevent “endemic wage theft within the carwash industry,” the article continued.

Appelbaum added that these “surety bonds” were meant to ensure that carwash workers would be able to collect the money due to them, the article stated, if it was found that wages were kept from them.

Appelbaum also noted that he would be satisfied with simply enforcing the $150,000-level bond for all carwash owners and that the Law Department should “seek clarification” about whether new legislation would be needed to achieve this, the article reported.

Steve Rotlevi, president of the Association of Car Wash Owners, stated that this association he heads was formed during a 2012 push to unionize workers and that the decision has, for the time being, helped preserve jobs, the article noted.

“A lot of us are cutting labor and converting to automated express washes,” Rotlevi said. “Any other decision would have literally eliminated thousands of jobs.”

Read the full article here.

You May Also Like

Managing employee relationships

Essential insights to ensure a thriving business built on trust and professionalism.

Managing employee relationships

As a carwash owner or operator, you know the success of your business largely depends on your employees. They are the backbone of the operation and their skills, talents and dedication are crucial for achieving your goals.

But, how can employers ensure that their employees are motivated, engaged and productive? One of the most effective ways is by building strong relationships based on trust and respect.

Reaching new reclaim heights

Advancements and innovations in water reclaim that improve quality and expand use.

Reaching new reclaim heights
Leading from the front

Being a team leader is about making the group better.

How to decide on a team leader
Water works

Best practices to ensure quality wash results and customer satisfaction at professional carwash sites.

10 points to understand about your Unlimited Wash Club

Learn the 10 keys to creating a better experience and increasing unlimited wash club membership.

10 points to understand about your Unlimited Wash Club

Other Posts

Big Dan’s Car Wash opens first location in Southwest Georgia

ALBANY, Ga. — The site boasts a 150-foot tunnel, self-prep stations and 30 vacuums.

Big Dan’s Car Wash logo
Quick Quack celebrates Victoria grand opening with 12 days of free washes

VICTORIA, Texas — The new wash is the second of at least three planned Victoria locations.

Mammoth Holdings opens Silverstar Car Wash in Coon Rapids

DALLAS — The opening marks the 26th Mammoth location under the Silverstar Car Wash brand.

25th Mammoth location under the Silverstar Car Wash brand.
MCA to host networking event

LANSING, Mich. — The event will feature Mark Fisk, a partner at Byrum & Fisk Advocacy Communications.

Mark Fisk, a partner at Byrum & Fisk Advocacy Communications