Proposed Call-In Pay Regulations Update (3/19)

March 1, 2019

NYSCWA Members,

As you should know, the New York State Car Wash Association, (NYSCWA) along with many other businesses as well as The Business Council of New York State, have been fighting the Department of Labor’s Call In/Call Out proposed regulations for more than a year. I was made aware that according to a Department of Labor (DOL) spokesperson the DOL has decided to allow the proposed regulations to expire and not pursue their implementation.

According to an article in The Albany Business Review written by reporter Liz Young, “Department officials said they realized their intention to support workers was being viewed as a one-size-fits-all approach that didn’t work for every industry after holding hearings and taking public comments.” When they revised the rules in December, the results were “praised by opponents and criticized by supporters,” said Jill Aurora, a spokeswoman for the state labor department.

That’s why officials are dropping the proposal for now, she said.
“At this time, due to the constraints of the regulatory process, the best course of action is to let this process expire and re-evaluate in the future, likely in concert with the Legislature, which would have a broader authority and better legal standing than Department of Labor regulations alone to balance the various needs of workers, businesses and industries,” Aurora said in a statement.

I would like to specifically thank Tom Hoffman, Jr. with Hoffman Car Wash, Ron and Brett Benderson with Delta Sonic, Jeff Gold with Buckman’s Car Wash, our NYSCWA Executive Director Suzanne Stansbury, NYSCWA Lobbyist William Crowell and NYS Senator Rich Funkie (R), 55th District, for their tireless efforts to keep the message that these regulations were bad for employees and would ultimately hurt the employees the DOL was trying to protect. The NYSCWA would also like to thank all the operators and employees who wrote letters, called their representatives, and attended hearings in opposition to the regulations.

According to our lobbyist, Bill Crowell, there may have been several external forces that played a key role in the DOL decision to back away from the proposed regulations, however, a key factor was that the NYSCWA helped keep the impact of their regulations as job killers in New York State in the forefront of conversations with legislators and the DOL.

While this is certainly good news, there is a strong likelihood that the proposal will resurface as a legislative issue, and while the prospect of a legislative approach is certainly better than a regulatory one, we must stay focused on the message that these types of policies, whether DOL regulations or laws, pose a threat to jobs in New York State.

Walt Hartl,
NYSCWA President

Click on the Links Below for More Information

Senate Commerce Hearing Recap

Find Your Senator

Contact your Senator

NYSCWA President’s Statement

scheduling cost spreadsheet – template

Senator Funke Letter

NYSCWA Position Paper (2019)

NYSCWA Position Paper – Expanded Comments 2018

NYSCWA Position Paper

Call-In Pay Changes

FAQ’s

Media Coverage

Editorial: Labor Department rules threaten jobs for young people

Wall Street Journal: Carwash Cheated Workers, New York Attorney General Says

Bloomberg/Lawsuit Followup

Business Review article

A.G. Schneiderman Sues Tropical Breeze Car Wash For Allegedly Cheating Over 150 Minimum Wage Employees Out Of More Than $540,000 In Wages And Benefits

Senate Hearing

Bloomberg Article

State’s ‘call-in pay’ proposal concerns small business owners

Tip Credit Update (1/19)

The New York State Department of Labor (DOL) has still not decided whether or not to eliminate or change the sub-minimum wage for tipped workers.

Under New York law, tipped workers can be paid less than minimum wage by employers who must make up the difference if it is not covered by tips. The Governor still feels that eliminating the tip credit will
protect immigrants and others from wage theft. It has been reported that restauranteurs oppose the elimination of the tip credit as do fast food workers and carwash owners who use the tip credit.

Here’s a link to the DOL’s website that outlines the hourly wage rate as well as the cash wage paid by an employer and the credit for tips received.
https://www.labor.ny.gov/formsdocs/wp/part146.pdf

For any additional information on the tip credit contact the New York State Department of Labor at https://www.labor.ny.gov/home/

Walt Hartl,
NYSCWA President

Tip Credit Talking Points

Model Sexual Harassment Policy

Every employer in New York State is required to adopt a sexual harassment prevention policy no matter the size of the business in the Governor’s efforts to combat sexuat harassment in the workplace.

Click the link below for specifics on this policy.
https://www.ny.gov/combating-sexual-harassment-workplace/employers
https://www.ny.gov/programs/combating-sexual-harassment-workplace