New legislation signed by New York City mayor Bill de Blasio at the end of June requires car washes in the city to obtain licenses and to purchase surety bonds in order to operate and to meet specific environmental standards and workplace safety requirements, reports

Car washes must obtain a $150,000 surety bond, which will cover potential claims, including those for labor violations. The bond requirement drops to $30,000 for parties to collective bargaining agreements or for those covered by an active government monitoring agreement by the state.

Steve Rotlevi, a Brooklyn-based car wash owner representing The Association of Car Wash Owners Inc., reportedly characterized the bill as “extortion.”