The New York City Car Wash Wage Payment Bond
is a new requirement for the New York City DCA due to the Car Wash Accountability Act, The law enacting this bond was passed in 2015 but enforcement will begin this renewal term. The license renews 10/31 of odd years.
About: The Act requires operators to obtain a license from the City that must be renewed periodically. Applicants for a license must prove that they have the appropriate liability insurance, workers’ compensation, and disability insurance coverage. The fee for a license would be $550 biennially. The Act would also require car wash operators, as a condition for obtaining a license, to obtain a surety bond of $150,000. If the car wash is subject to a collective bargaining agreement the amount of the bond required is only $30,000. Depending on an owner’s credit score, the premium for such a bond will cost between $1,500 and $15,000 a year. We have the bonding company with the best rates.
How it works: the purpose is to ensure that car wash operators pay all earned wages, interest on wages, and fringe benefits due to their employees. If the principal fails to pay all sums appropriately, then the Bonding Company will pay and go after the principals to recover any funds they have paid out. The bond protects employees from financial loss.
Let Bernard Fleischer & Sons Inc. / BFBond.com help you meet these requirements as efficiently as possible with our new online application to expedite the bonding process. Visit us at www.bfbond.com to learn more, Apply Here or contact our bond underwriter Jose Ward at 1.800.921.1008 ext. 110