Lawsuit Filed
by Carwash Owners Due to Unionization Rules
Perceived
benefits for unionized car washes initiate
conversation for employees in New York
A group of
carwash owners across New York filed a
lawsuit with the city, arguing that the
current structure of Union rules illegally
favors the Unions and doesn't protect the
low wage workers the way it is supposed to.
The suit
was filed by the Association of Carwash
Owners, an organization representing
approximately 90 washing operations across
New York City. The complaint was filed
recently in the Federal District Court in
Manhattan. The focus of the lawsuit is on
new regulations that mandate non-unionized
carwashes to post a surety bond of $150,000
before they are eligible to obtain a
license.
Unionized
operations, however, only have to pay
$30,000. The attorney representing the
carwash owners argued that this two-tier
system of payment is illegal and that it
violates previous decisions handed down by
the United States Supreme Court. Those past
decisions relate to a local government's
ability to discourage or favor collective
bargaining. By making it less expensive for
individuals with collective bargaining to
obtain a license, the lawsuit argues that
New York City gave these individuals an
unfair competitive advantage.
This is
the first legal challenge as a result of New
York City Council's attempt to overhaul the
carwash industry to support low-wage workers
working within it. The new regulation was
passed this summer after several years of
legal challenges. In addition to the new
requirements about the surety bond, it also
prohibits employers from using background
checks on employees before making an
official job offer. The purpose of the
surety bonds is to ensure that payouts are
made if an employer is determined to be
guilty of under paying employees on their
register.
One of
the biggest reasons for this lawsuit to be
filed is that very few of the 200 carwash
operations across New York City have
actually moved forward with unionizing. The
law would certainly alter that if the surety
bond is mandated. Individuals making
statements on behalf of New York City
Council defend the law as essential to
protect employees at carwashes. The carwash
industry has come under fire in recent years
as a result of allegations of unfair or
discriminating practices that leave low wage
workers at risk. The primary basis of many
of the claims against the carwash industry
have to do with labor violations and wage
theft.
Do you know a car wash
employee who has been impacted by
wage theft? Contact our
knowledgeable New York employment lawyers at
the offices of Hepworth, Gershbaum & Roth
PLLC today at
212-545-1199 or
contact us online
for a free, confidential consultation.
.
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