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New York rains penalties on small businesses

Small business owners, already suffering under the long-term economic slump and rising material costs, are now groaning under the spate of penalties the City is imposing on them. Owners of such small businesses as delis, restaurants, and vegetable stores in the New York-Korean community have been hit with fines for violations regarding waste disposal, sanitation, cleaning, and signs, among other things. But many owners complain that the inspectors are applying the rules and standards unevenly.

For example, Mr. Kim, the owner of a grocery on Fifth Avenue in Manhattan was fined by an inspector for a violation regarding the awning over his storefront. The awning provides shade and is allowed by law. However, according to the inspector's statement, the awning at the store does not meet NYC standards, because it bears the name of the awning company. Mr. Kim was ordered to remove or cover the name of the awning company. In other cases, alterations to signs that were made by order of City inspectors were found to be violations by other inspectors. Some grocery store owners were told that they had to retake photos of their store signs.

In a more serious case, Mr. A, the owner of a grocery on 52nd St. in Manhattan, was ordered to temporarily close his store because of failed sanitation inspections. He must first fix all of the violations noted by the inspector, present proof of the changes at court, and pay a penalty.

Small business owners are complaining that they feel confused and upset because City inspectors are not uniformly applying the same standards and interpretations of the law. Many business owners note that in the past there were no or only small violation issues with their businesses, but now even the tiniest infractions are reported and fined; they feel this situation is too extreme.

Last year, inspectors issued warnings or suggestions concerning improvements. This year, however, they are issuing violations and imposing fines. Business owners remarked that they can reckon with hundreds of dollars in fines for every inspection – this seems to be the "standard level" for fines this year.

Business owners complain that the flood of violations is simply a way for New York to fill its coffers in the attempt to offset budget deficits.

While the increase in fines noted by small business owners is true, it must also be noted that the City has upgraded and detailed new, stricter inspection regulations and criteria. For business owners, this seems to translate into increased and merciless fining. While the allegation that the City is trying to offset losses through unpaid taxes may be questioned, it is true that the City has failed to sufficiently advertise the new, stricter regulations, thus adding to the owners' surprise and complaints.

 

In News section of Edition 440 9 September 2010

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