To protect the employees of car wash businesses in the City of New York, the surety bond amount required for the said businesses has been increased.
Under the Car Wash Accountability Law, persons who are intending to apply for a car wash license, or those that are renewing their car wash licenses, will need to post a $150,000 surety bond to the Commissioner of the Department of Consumer Affairs of the City of New York.
A $30,000-surety bond will be required of car wash license applicants that are a part of a recognized collective bargaining agreement.
The prerequisite is needed before they can provide cosmetic care or clean vehicles. This includes washing, detailing, drying, polishing, or vacuuming.
Why is a surety bond required for car wash businesses?
The new surety bond changes – which will take effect on December 4, 2017 – will ensure the timely payment of wages, as well as the complete compliance of the car wash licensee to the regulatory and statutory provisions of the industry.
If the car wash licensee fails to comply with his or her statutory obligations, any person who has been affected by such misconduct will have the right to be indemnified through a bond claim. It will also be conditioned that the surety bond will cover fines, penalties, and other obligations.
The surety bond should be written on a form approved by the Commissioner of the Department of Consumer Affairs of the City of New York and should be payable to the City of New York.
How can a car wash business benefit from obtaining a surety bond?
A surety bond works as a guarantee and a Surety as a guarantor. The Surety will be the Principal’s (car wash license applicant and licensee) guarantor, aid, and advocate. If a claim arises, the Surety can assert the defenses of the Principal within the lawful terms of the bond.
The other benefits that you, as the Principal, will get from having a surety bond include:
- Increasing your car wash business’ credibility
- Achieving your business goals with the help of your satisfied and secured core set of employees
- Diminishing the concern that you might experience from future claims
Do you have further questions about this bond? Call us at 800-333-7800! We’re here for you!