A recent settlement in New York City reinforces the vital need for commercial cleaning contractors to fully understand the complexities and legal obligations of local wage laws. The city's Comptroller's Office has reached a $3 million settlement with two cleaning operations to provide back wages to the hundreds of subway cleaners that tackled tasks during the COVID-19 pandemic. 

The dispute stems from the New York City Transit Authority's decision to contract with the businesses for deep cleaning and disinfecting of subway cars. The NYCTA initially informed the contractors that the work was not subject to the existing wage requirements, making the case that cleaning subway cars did not count as "building service work". The city's Comptroller's Office took issue with this, and launched an investigation and eventual lawsuit. 

Back in 2024, the New York City Office of Administrative Trials and Hearings decided that the work of cleaning/disinfecting subway cars does count as "building service work" New York labor laws. This ruling established that the contracts were subject to existing wage requirements, which mandated a higher rate of pay than what the workers were given.

The settlement allocates $2.4 million to LN Pro Services, LLC and $606,686.80 to Fleetwash, Inc., but NYCTA will cover a large portion of the settlement costs, noting that agencies can face financial penalties when it provides inaccurate guidance to contractors. Thus, there could be potential financial risks for cleaning companies that use their client's interpretation of labor laws.