If you own, manage or lease a large commercial space in New York City and you replace your cleaning contractor, the incoming contractor generally has to keep the outgoing contractor's building service workers for a 90-day transition period. That obligation comes from the Displaced Building Service Workers Protection Act (NYC Administrative Code § 22-505), and since a 2016 amendment it also reaches commercial tenants with more than 35,000 square feet and owners who bring cleaning in-house or send it out.
This explainer covers what the law asks of each party, what it leaves open, and how to build a contractor change that does not end up in court. It is general information, not legal advice. Have your counsel confirm the current text and thresholds before you sign anything.
Who the law applies to
The act is written around "covered employers" and "successor" employers. In plain terms, it is triggered when building services at a property change hands because:
- an owner or manager ends a cleaning or other building service contract and hires a new contractor for substantially similar work,
- a building is sold or management changes and the new owner or manager takes over the service staff,
- an owner or manager stops using a contractor and hires cleaners directly (insourcing), or does the reverse (outsourcing),
- a commercial tenant occupying more than 35,000 square feet does any of the above for its own space.
That last point surprises a lot of corporate occupiers. Before 2016 the act only bound owners, managers and contractors. A large tenant that ran its own janitorial contract on a few floors of a Midtown tower could switch vendors without thinking about worker retention. Today that same tenant is a covered employer for its premises.
The 2016 changes also removed an older exemption for buildings where the City leased more than half the space, and made it explicit that security officers and fire safety directors count as building service employees alongside cleaners, porters and maintenance staff.
Which workers are protected
The act protects building service employees who worked at the site before the change, generally those who had been on the job there for at least a few months and who earn below an hourly wage cap. The 2016 amendment raised that cap to $35 per hour and tied it to annual inflation adjustments, so check the current figure rather than relying on an old memo. Managerial, supervisory and confidential employees typically fall outside the definition.
For a typical office building, that means most of the night cleaning crew, day porters, matrons and handypersons the outgoing contractor had on site will be inside the protected group.
What the incoming contractor must do
During the 90-day transition period, the successor has to retain the covered workers who were employed at the building. It can only let someone go during that window for cause, or if it decides that fewer workers are needed to do the job. If it does reduce headcount, it has to keep people by seniority within each job classification and maintain a preferential hiring list of those laid off.
At the end of the 90 days, the successor evaluates each retained worker in writing. Workers whose performance was satisfactory must be offered continued employment.
The act also includes advance notice and information duties around the changeover, such as the outgoing contractor sharing a list of the workers at the site so the successor knows who is covered. Exact timing matters, so put it in your transition plan and confirm it with counsel.
What the law does not require
The act is narrower than many buyers assume:
- The successor does not have to keep the previous contractor's wage rates, benefits or seniority terms.
- It does not have to assume the outgoing contractor's collective bargaining agreement.
- It does not lock the workers in past the transition period if their written evaluation is not satisfactory.
Separate obligations may still apply. Many Manhattan office buildings have union agreements of their own, and some building rules require union-represented building service staff. Those come from labour contracts and building policies, not from § 22-505, and they can be stricter.
What happens if the rules are ignored
A worker who is discharged or not retained in violation of the act can sue the successor and the covered employer in New York State Supreme Court. Courts can order reinstatement and back pay, and the remedies have included liquidated damages that can double the back pay award. Injunctions are also available. For a building with a large night crew, a careless switch can turn a cost-saving vendor change into a significant liability for both the contractor and the owner or tenant who hired it.
Planning a contractor change in New York City
A clean handover is mostly a matter of putting the act into the paperwork early.
Before you issue the RFP. Tell bidders that the act applies and that they must price the 90-day retention of the existing workforce. A bid that assumes a brand-new crew from day one is not comparable to one that does not.
In the RFP itself. Share headcount by classification, shift patterns and total weekly hours, without personal details. Ask each bidder to describe how it handles the transition period, how it trains retained staff on its own procedures, and how it documents the written evaluations.
In the new contract. Include an indemnity from the contractor for any claim arising from its failure to comply, require compliance with the act and any applicable union agreement, and set a clear start date that the notice requirements can actually meet.
In the outgoing contract. Check that your current agreement obliges the contractor to cooperate with the transition and provide the employee information the successor needs. If it does not, raise it before you give notice.
During the changeover. Schedule a walkthrough with the new supervisor and the retained crew, confirm key and access card transfers, and agree on how security desk sign-ins will work for the first nights. Supply closets, chemical inventory and equipment ownership should be settled in writing so nothing walks out with the old vendor.
Questions to ask bidders
- How many New York City contractor transitions has your team managed under the act, and who runs them?
- Will retained staff keep their current shifts during the 90 days?
- How do you document the written evaluation at the end of the transition period?
- Can you show proof of general liability insurance and New York workers' compensation coverage?
- How do you handle building rules on union-represented staff?
If a bidder has never heard of § 22-505, that tells you something.
Frequently asked questions
Does the 90-day rule apply to small offices in New York City?
It depends on who is changing the contract. If the building owner or manager is replacing the building-wide cleaning contractor, the act can apply regardless of the size of any single tenant. If you are a tenant hiring your own cleaner for your space, the tenant coverage applies when you occupy more than 35,000 square feet.
Can the new cleaning contractor pay retained workers less?
The act does not require the successor to keep the previous wages or benefits. Union agreements, prevailing wage rules on certain public or subsidized work, and minimum wage law can still set the floor, so check every source that applies to your building.
What if we bring cleaning in-house instead of hiring another company?
Insourcing is covered. An owner, manager or large tenant that ends a contract and hires the cleaners directly generally has the same 90-day retention duty as a new contractor would.
Do other US cities have similar worker retention laws?
Yes. Cities including Chicago, Philadelphia, San Francisco, Los Angeles and Washington, D.C. have their own service worker retention rules, each with different thresholds and transition periods. Never assume the New York version applies elsewhere.
Getting quotes for a New York City building
Simple Service is based in Greater Montréal and does not run crews in New York. If you are preparing to change contractors in the five boroughs, tell us about your facility and we'll connect you with a commercial cleaning team that serves New York City and understands the transition rules. You can also read our overview of commercial cleaning in New York or see how a typical office cleaning scope is built.