Avoid Fines & Protect Your Locations: Compliance for NYC Retailers

AVOID FINES AND PROTECT YOUR LOCATIONS:

COMPLIANCE RULES FOR NYC RETAILERS

TODAY’S AGENDA

• Agency Overview

• NYC’s Top 3 Compliance Headacheso Fire Department Violations & Permittingo ECB Fines & Hearingso Elevator Inspections & Corrections

• Best Practices: How to Maintain Compliance

• SiteCompli Demo

KEY NYC AGENCIES IMPACTING RETAILERS

Environmental Control Board

(ECB)

Department of Buildings

(DOB)

Fire Department

(FDNY)

Department of Sanitation

Department of Health

• Elevators/Boilers• Construction Work• Illuminated Signs

• Equipment Permits (A/C/Refrigeration, Range Hood, Sprinkler/Standpipe)

• Place of Assembly permits

• Waste Disposal/Recycling Violations

• Dirty Sidewalk Violations

• Food Safety Violations• Health Code Violations

TOP 3 NYC COMPLIANCE HEADACHESIn the complex, high-stakes regulatory landscape of NYC, the

following areas present the biggest challenge for retailers:

Fire Department Violations & Permitting

Environmental Control Board Fines & Hearings

Elevator Inspections & Corrections

TOP 3 NYC COMPLIANCE HEADACHES:FDNY VIOLATIONS AND PERMITTING

The FDNY stores data completely offline and has limited administrative capabilities, making this information extremely difficult

to obtain, though critical for safety and compliance.

ECB Notices of Violation (NOVs) FDNY Permit Accounts • Associated with a fine and a

hearing through the ECB

• Compliance typically requires both a correction and payment

• Associated with hazardous or fire-safety related equipment

• Permits expire and need inspection and payment to be renewed

• Examples: Sprinkler/Standpipes, A/C/Refrigeration Units, Range Hoods, Fire Alarms, Fuel Oil Permits, Place of Assembly Permits

FDNY NOV COPY: EXPIRED A/C PERMIT

FDNY VIOLATION PENALTIES

Attend Hearing(per infraction)

Mitigated Penalty(per infraction)

Default Penalty(per infraction)

First Violation $500 – 1000 $250 - 475 $1,000

Subsequent Violations $1,500 – 2,400 $750 – 1,200 $5,000

An FDNY Notice of Violation may contain multiple infractions. Each violating condition has an associated penalty and requires

its own compliance. For example, an NOV with three different infractions could lead to

a $3,000 default penalty.

TOP 3 NYC COMPLIANCE HEADACHES:ECB FINES & HEARINGS

Inspectors visit locations

and issue violations.

To avoid a hearing and

penalty, named respondents

can cure violations with

the DOB or FDNY.

If a violation is not or cannot be cured, the named

respondent attends a hearing.

Missed hearings result in a maximum

“default” penalty.

Common challenges retailers face with the ECB include:

Keeping Track of

ViolationsOverpaying

PenaltiesSurprise

InspectionsECB Hearing

Representation

TOP 3 NYC COMPLIANCE HEADACHES:ECB FINES & HEARINGS

TOP 3 NYC COMPLIANCE HEADACHES:ELEVATOR INSPECTIONS & CORRECTIONSVertical transport devices are subject to a complex

web of regulations.

Regulations Inspections & Corrections Violations & Liability

• Rules regarding inspections and corrections are increasingly complex and becoming more costly

• There is a lack of communication from the City on regulatory changes

• The DOB requires elevator inspections on 1-year and 5-year cycle, with missed annual inspection fines of $3,000 - $5,000

• After inspection, your elevator vendor must correct any violating conditions and file correction paperwork. The penalty for not correcting defects is the same as if the inspection never happened.

• Private elevator contractors hired by the DOB can visit a location at any time and issue “PVT” Violations

• According to the DOB, vertical transport is the building owner’s responsibility, but the terms of your lease may dictate that you are responsible for devices

BEST PRACTICES: HOW TO MAINTAIN COMPLIANCE

Keep track of which agency monitors which items, and keep an eye out for any regulatory changes.

Make sure your on-site team at each of your locations stays informed.

Stay in communication with your vendors and consultants.

Q&A