Learning Curve – New York’s New Licensing Law

Posted January 13, 2017 at 4:15 pm

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Roughly 30 New York-area laundry operators jammed into a meeting room at the Department of Consumer Affairs (DCA) office in lower Manhattan on Jan. 11 for a question-and-answer session on the city’s new laundry licensing law, which takes effect Jan. 31.

City officials, led by DCA Commissioner Lorelai Salas, pledged to aid laundry operators in figuring out how to comply with the new rules, which were posted online on Jan. 3. The law was enacted last August. Operators won’t receive a phase-in period to acquaint themselves with the regulations, which include documented compliance with wage and safety regulations.

That news drew a mixed reaction from the operators during the meeting organized by TRSA. “It’s difficult to get people together to do this,” said David Potack, vice president of Unitex, Mt. Vernon, NY, and chair of TRSA. “This is three weeks out and we’ve been trying to be good operators and get all the changes needed. Because of the timetable we’ve been dealing with it proactively. We’ve been trying to schedule these discussions for some time. Now we’re sitting here with three weeks left.”

Salas responded that while operators shouldn’t expect aggressive enforcement of the rules immediately in February, compliance is nonetheless their responsibility. Moreover, the agency will investigate any complaints they get about laundries. “We can’t change the date,” Salas said of the law. “We’ll see what happens February 1 with enforcement.” She followed up by asking, “Is there a way that we can be helpful to get your members, the people in this room to get them to be licensed? If there’s a way that we can help a group of you?”

A flurry of questions followed on an array of issues related to the law. Salas and six DCA staff executives answered some questions, but on at least three occasions, Salas said officials would have to discuss the details internally and get back to the operators through TRSA.

One issue centered on the law’s requirement (section 20-297.5) that operators tag thousands of laundry carts with a company’s license number, once that information is issued. DCA officials only recently made these licensing forms available online, including an overview of what companies need to be licensed and the requirements associated with the application process. “OK, we’ll talk about it internally and get back to you and see what we can do in terms of getting you more time to do that,” Salas said of the cart-marking issue.

A similar discussion centered on trucks that also must display the license number. Attendees had additional questions about how to identify leased or temporary trucks that are routinely used when regular fleet vehicles undergo maintenance or repairs.

Paul Thomas, a New York-based consultant who’s worked with TRSA on this legislation since the bill was introduced in the spring of 2015, said the operators will do all they can to get licensed and into full compliance as quickly as possible.

“Thank you for your willingness to work with the industry,” Thomas said.  “As the companies get their licenses, we’ll work hand in hand as each step goes along. The first step is making sure we get our application in and then as the T’s are crossed and I’s are dotted, we’ll circle back and give you updates on the processes of getting into compliance with the law in terms of labeling.”

Another question that operators sought clarification on was who precisely is covered under the law and how the DCA will enforce compliance. Salas and TRSA Vice President of Government Relations Kevin Schwalb clarified that hospital-based laundries are exempt from the law because state regulations governing hospitals preempt the city rules in that sector of the industry. However, TRSA President Joseph Ricci pointed out that hotel laundries are liable under the new law, whether they realize it or not. “In terms of hotels, roughly 70-75% of the hotels actually have laundries that would require licensing.” He added that TRSA has limited contacts with the hotels because they’re outside the commercial laundry sphere. No representatives of hotel laundries attended the meeting.

Potack added that Posome hotels operate central laundries outside New York City. Many of these “central laundries” service hotel properties in Manhattan, he said.

Potack, Ricci and others at the meeting said that most of the laundry companies that service New York City restaurants, hotels and other businesses that require textile services are based outside the city, such as in New Jersey or Long Island, NY. These companies send truck fleets into New York to serve customers. The attendees estimated that no more than 10-20 commercial laundry plants currently operating in New York’s five boroughs.

One operator, Paul McDonald, Stamford Uniform & Linen, Stamford, CT, asked about the agency’s enforcement powers outside city. “My laundry isn’t in New York City, or in New York State,” he said. “Are you planning to make out-of-state inspections?”

Salas responded that city inspectors can’t cross such jurisdictional lines, but the certification rules do apply to any company that does business in New York City, along with and the application process, licensing and bonding fees. “All that we can do legally is in New York City,” she said. However, the application process requires that all laundries certify legal compliance with safety and wage requirements for the jurisdiction in which they operate. For example, if the laundry is based in New Jersey, the operator licensed to serve businesses in New York must comply with the laws in their jurisdiction.

The meeting ran about 10 minutes over the hour allotted for discussion, and attendees likely could have spent far more time reviewing the range of issues touched on there. Schwalb emphasized that TRSA had worked hard to convince lawmakers to drop the bill on the grounds that adequate regulations are already in place for laundry operators. Nonetheless, the measure received unanimous support from the New York City Council and was signed by Mayor Bill de Blasio. Schwalb pointed out that many troubling provisions of the bill, such as one requiring operators to provide lists and contact information on customers and laundry delivery drivers were dropped before final passage due outreach efforts to city officials last year by Ricci, Potack and other industry leaders.

The bill emerged in May 2015 after an article in the New York Daily News published allegations of safety problems and poor working conditions in city laundries. TRSA rejected those views as a distortion of reality in the vast majority of laundries. Schwalb, Potack, Ricci and others shared statistics with city leaders showing reduced injury rates and a high degree of operator compliance with OSHA rules.

“We communicated with city officials in an effort to show that this law wasn’t necessary,” Schwalb said. “They passed it anyway, so we have worked since then to make the law as minimally burdensome to operators as possible. We will continue to work with operators and the DCA to assist in the implementation process.”

Any New York-area operators with questions about the new law should contact Schwalb at kschwalb@trsa.org. Click here or on the link above to download the DCA application form. For additional background on the law, click here.

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