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  • 4 Mar 2026 12:45 PM | Dawn Hargrove-Avery (Administrator)

    The AI Customer Service Backlash — And What Service Businesses Must Fix

    Artificial intelligence is rapidly transforming customer service.

    Chatbots answer questions. Automated systems confirm orders. AI tools route requests and suggest solutions. Businesses across many industries implemented these systems hoping to improve efficiency and reduce labor pressure.

    But customers are sending a clear warning.

    Recent customer experience research highlighted by The DiJulius Group shows that nearly half of customers would consider leaving a company if AI became their only support option.

    The lesson is not that AI is failing.

    The lesson is that many businesses implemented AI without redesigning their service systems.

    Why Customers Are Pushing Back

    The backlash against AI customer service is not about technology itself.

    It is about high-effort service experiences.

    Customers become frustrated when automation creates barriers instead of support.

    Common problems include:

    • Getting trapped in chatbot loops
      Repeating the same information multiple times
      Being unable to reach a real person
      Automated responses that ignore emotional context

    When customers feel they must work harder than the company to resolve a problem, loyalty drops quickly.

    This is not a technology problem.

    It is a service design problem.

    Why This Matters for Garment Care

    Dry cleaning is a relationship business.

    Customers trust cleaners with garments connected to important moments in their lives:

    Weddings
    Interviews
    Special events
    Family heirlooms

    A chatbot can confirm that an order is ready.

    But it cannot reassure a bride worried about her wedding dress.
    It cannot calm a customer concerned about a stain.
    And it cannot replace the trust built through conversation and experience.

    Technology should support that relationship — not weaken it.

    The Right Role for AI in Customer Service

    Artificial intelligence works best when it supports employees rather than replaces them.

    Technology is excellent at handling repetitive operational tasks such as:

    Order status notifications
    Customer history summaries
    Scheduling reminders
    Operational alerts

    Humans remain essential for situations requiring:

    Empathy
    Judgment
    Problem resolution
    Trust-building conversations

    The companies winning with AI today combine both.

    Technology removes friction inside the operation while people deliver the service experience customers remember.

    The SmartCare OS Approach

    This philosophy is exactly what led to the development of SmartCare OS.

    SmartCare OS is designed to improve service businesses by removing operational friction so employees can focus on customers.

    Instead of replacing staff, SmartCare OS helps teams:

    Improve intake communication
    Track garments through production
    Respond confidently to customer questions
    Prevent workflow bottlenecks
    Maintain consistent communication

    When operations run smoothly behind the scenes, service improves naturally.

    Employees spend less time chasing information and more time helping customers.

    The Service-First AI Model

    Businesses implementing AI successfully follow a simple principle.

    Use technology to improve operations.
    Use people to deliver service.

    This model creates three advantages:

    Faster decision making
    Better operational visibility
    Stronger customer relationships

    Automation should never become a wall between a company and its customers.

    It should make service easier.

    The Bottom Line

    Customers are not rejecting artificial intelligence.

    They are rejecting systems that make service harder.

    The businesses that succeed with AI will be those that use technology to remove friction while protecting the human side of customer experience.

    That balance is where the future of service businesses will be built.

    And in garment care, it is exactly what SmartCare OS is designed to deliver.

    Frequently Asked Questions About AI Customer Service

    What is the AI customer service backlash?

    The AI customer service backlash refers to growing frustration among customers when companies rely too heavily on automated systems such as chatbots and AI assistants without providing access to human support.

    Many customers report difficulty resolving issues when automation creates barriers instead of assistance. Research highlighted by The DiJulius Group found that nearly half of customers would consider leaving a company if AI became their only support option.

    The backlash is not against AI itself. It is against service systems that increase effort and reduce access to human help.

    Why are customers frustrated with chatbots?

    Customers become frustrated with chatbots when the systems fail to resolve their problems or prevent them from reaching a real person.

    Common frustrations include:

    Getting stuck in automated loops
    Repeating the same information multiple times
    Receiving generic responses that ignore the situation
    Being unable to escalate to human support

    When customers feel the company is prioritizing efficiency over service, trust and loyalty decline quickly.

    How should businesses use AI in customer service?

    Businesses should use AI to support employees and improve operational efficiency rather than replace human interaction.

    Artificial intelligence works best for tasks such as:

    Order tracking and status updates
    Customer history summaries for staff
    Workflow alerts and reminders
    Answering simple, repetitive questions

    Human employees remain essential for situations involving complex issues, emotional concerns, or service recovery.

    The most effective approach is combining AI automation with accessible human support.

    What is the best balance between AI and human service?

    The best balance between AI and human service is a hybrid model where technology handles operational tasks and people handle relationship-based interactions.

    AI should manage repetitive processes such as notifications and internal workflow tracking, while employees focus on empathy, judgment, and problem resolution.

    This balance allows businesses to increase efficiency without sacrificing customer trust or experience.

    How can service businesses implement AI successfully?

    Service businesses can implement AI successfully by introducing technology gradually and focusing on improving operations rather than replacing employees.

    A successful approach typically includes:

    Improving customer communication first
    Training staff in service recovery and customer experience
    Using AI tools to support employee decision making
    Implementing operational dashboards to improve workflow visibility

    Frameworks such as SmartCare OS follow this model by using AI to remove operational friction while protecting the human side of service.



  • 4 Mar 2026 12:18 PM | Dawn Hargrove-Avery (Administrator)


    There is a pattern we see repeatedly in plant after plant.

    Production slows. Decisions stall. Claims increase. Staff hesitates.

    And when we trace it back, the bottleneck is not equipment. It is not volume. It is not the economy.

    It is decision latency.

    What Decision Latency Looks Like

    • Counter staff unsure whether to promise a pickup time
    • Spotter waiting for approval on a borderline garment
    • Pressing team unsure whether to rework or release
    • CSR afraid to document fabric risk clearly
    • Claims handled differently every time

    When decisions depend on one person, the system slows.

    Most often, that person is the owner.

    The Owner as the Accidental Bottleneck

    Most owner-operators became the decision center because:

    • They have the most experience
    • They have handled every claim before
    • They understand customer expectations
    • They do not fully trust documentation processes

    But when every exception routes to one person, three things happen:

    1. Throughput slows
    2. Stress rises
    3. Consistency disappears

    The plant begins operating on heroics instead of systems.

    Systems Over Heroics

    Professional garment care requires judgment.

    But judgment should live inside guardrails.

    If your team does not know:

    • What to document
    • When to escalate
    • How to set expectations
    • What language protects the business
    • When to slow intake

    Then every garment becomes a debate.

    And debates create bottlenecks.

    Removing Decision Latency

    Removing decision latency does not mean removing oversight.

    It means:

    • Clear intake standards
    • Written escalation triggers
    • Documented dye risk language
    • Pre-approved turnaround guidelines
    • Standardized claims documentation

    When staff knows the framework, they move confidently.

    Confidence increases throughput. Throughput increases stability.

    Stability is a competitive advantage.

    A Simple Diagnostic

    1. How many times per day does someone stop production to ask you a question?
    2. If you were gone for three days, where would things stall?
    3. Are decisions documented, or do they live in your head?

    If the answer is "mostly in my head," you have a systems opportunity.

    Before focusing on volume or promotions this spring, stabilize decision flow.

    Reduce decision latency. Document judgment. Build operational visibility.


  • 4 Mar 2026 12:05 PM | Dawn Hargrove-Avery (Administrator)

    Every garment entering the plant should be inspected carefully before processing begins.

    Inspection should happen in two places:

    • At the counter during intake
    • At the spotting board before stain removal begins

    The goal is simple: identify conditions that may lead to claims before the garment is processed.

    Certain defects are not caused by cleaning. They are the result of manufacturing issues, fabric weakness, or prior consumer damage. If these conditions are not identified early, the cleaner may appear responsible for damage that already existed.

    Three warning signs should always trigger a pause before spotting, pressing, or cleaning.

    1. Dye Migration

    Dye migration occurs when dyestuffs release from one portion of a fabric and transfer to another area.

    This issue is frequently seen in:

    • Printed garments
    • Color-blocked garments
    • Bright or saturated dyes

    Migration may occur because of defective dye application during manufacturing, or it may develop from perspiration, staining substances, or wear.

    In many cases, once dye migration occurs it cannot be corrected without risking additional damage.

    If a garment appears to contain unstable dye, a preliminary test may be performed at the spotting board.

    Place the garment over a white towel and apply drycleaning solvent to an unexposed area. If dye transfers to the towel, the dye system is unstable.

    Even this test has limits. Some dyes are heat sensitive and may migrate only during drying or during the reclamation cycle.

    If dye instability is suspected, inform the customer and obtain a release of liability before processing.

    2. Fiber Distortion

    Fiber distortion typically indicates weak yarn construction.

    When yarns lack sufficient tensile strength, the fabric may show:

    • Pilling
    • Chafing
    • Yarn separation
    • Unraveling

    Minor pilling may sometimes be corrected, but chafing and yarn separation are permanent conditions.

    Fiber distortion may also result from improper stain removal attempts by the customer. Harsh rubbing or chemical use can weaken fibers and cause localized damage.

    Any distortion or weakened areas should be documented and shown to the customer before cleaning.

    Clear documentation protects both the cleaner and the customer.

    3. Bonded or Fused Fabrics

    Many garments rely on bonding or fusing to maintain structure.

    These fabrics use adhesive binders that are cured under heat and pressure to hold layers together.

    If the bonding process during manufacturing was faulty, the outer fabric may:

    • Separate from the backing
    • Bubble or pucker
    • Delaminate during cleaning

    Drycleaning solvents can dissolve some adhesives, and the heat used during drying or finishing can further weaken defective bonds.

    Unfortunately, there is no completely reliable way to test bonded or fused fabrics before processing.

    If separation or puckering is visible during inspection, the customer should be advised of the garment’s defective condition before cleaning.

    The Professional Approach

    Professional garment care begins with inspection.

    Stopping early when red flags appear can prevent unnecessary claims and protect both the cleaner and the garment.

    When these warning signs appear:

    Stop.
    Test when possible.
    Document the condition.
    Communicate clearly with the customer.

    Careful inspection remains one of the most important skills in professional garment care.

  • 23 Feb 2026 6:07 PM | Dawn Hargrove-Avery (Administrator)


    Eighty years is not simply a measure of time.
    For an association, it is a measure of responsibility.

    For eight decades, the National Cleaners Association has served the professional garment care industry through periods of economic change, regulatory shifts, evolving fabrics, and changing consumer expectations. That longevity is not accidental. It reflects a commitment to steadiness, credibility, and service over trend or visibility.

    In today’s environment, that role matters more than ever.

    The garment care industry is moving faster. Regulations are more complex. Business decisions carry higher risk. Owners are expected to do more with less margin for error. In that environment, the value of an association is not how loudly it speaks, but how reliably it supports.

    Legacy does not mean resisting change. It means absorbing change responsibly.

    Over the years, NCA’s role has evolved alongside the industry it serves. What has remained constant is the association’s focus on education, standards, and providing guidance that members can trust. That focus is not rooted in nostalgia, but in an understanding that clarity and consistency are essential when conditions are uncertain.

    As the industry continues to evolve, NCA’s responsibility is not to predict every outcome or promote every new idea. It is to help members navigate complexity with confidence by offering structure, perspective, and dependable support.

    Marking 80 years is not about looking backward. It is about recognizing what it takes for an organization to remain relevant over time. Stewardship requires patience, discipline, and a willingness to adapt without losing purpose.

    That is the work NCA remains committed to as it supports professional garment care businesses today and prepares responsibly for what lies ahead.

    Published in recognition of the National Cleaners Association’s 80th year of service to the garment care industry.


  • 21 Feb 2026 6:05 AM | Dawn Hargrove-Avery (Administrator)

    This year, the National Cleaners Association marks 80 years of service to the professional garment care industry.

    For eight decades, NCA has served as a steady presence focused on education, standards, and industry stewardship. Like the businesses it represents, the association has evolved over time, responding to changes in technology, regulation, consumer expectations, and the realities of operating in a modern environment.

    In recent years, NCA has been engaged in a deliberate period of rebuilding and modernization. The focus has been on strengthening internal systems, restoring trust, and ensuring the association remains a relevant and reliable resource for members navigating increasingly complex operational and regulatory landscapes.

    That work has laid the foundation for what NCA now refers to as the SmartCare Era.

    The SmartCare Era is not a single program or initiative. It is an operating framework that organizes how NCA delivers education, compliance guidance, operational insight, and modern tools to its members. The emphasis is on clarity, consistency, and long-term stability rather than constant change.

    As the association enters its 80th year, this approach reflects a broader commitment to helping garment care businesses operate with greater confidence and visibility, while ensuring NCA itself remains a credible, future-ready institution for the industry.

    This milestone is not about launching something new or rewriting history. It is about acknowledging continuity, recognizing progress, and preparing responsibly for what comes next.

    NCA’s role remains what it has always been: to support professional cleaners with steady leadership, practical guidance, and a long-term perspective as the industry continues to evolve.

    Published in recognition of the National Cleaners Association’s 80th anniversary.

  • 18 Feb 2026 4:11 PM | Dawn Hargrove-Avery (Administrator)


    Contextual Analysis for Garment Care Members

    What "Something Big Is Happening" Means for Dry Cleaners Right Now

    The essay making the rounds right now is written for knowledge workers, but the core idea translates directly to garment care: AI increases the speed and consistency of decisions when your process is already defined. If your process is not defined, AI will expose gaps fast.

    This is not primarily a marketing moment. It is an operations moment.

    1) The Real Impact Is Decision Speed, Not Content Creation

    Most cleaners do not lose money because they cannot write social posts. They lose money because decisions take too long or vary by person:

    • Intake judgment differs by counter associate
    • Spotting approach differs by technician
    • Pressing standards differ by presser
    • Rework happens quietly
    • Claims happen loudly

    AI helps when it is used to reduce decision latency and standardize choices.

    2) Systems Over Heroics Becomes the Competitive Advantage

    Garment care is a repeatability business. The essay argues AI is reaching a point where it can execute complex tasks end to end—if goals and constraints are clear. That rewards operators who run on systems rather than improvisation.

    For cleaners, this means:

    • Clear standards beat "best person on shift"
    • Written SOPs beat tribal knowledge
    • Consistent intake tags beat memory
    • Defined service recovery beats ad hoc refunds

    Stability is a competitive advantage.

    3) The Safest First Use Cases Are Internal, Not Public-Facing

    The best early wins for cleaners are behind the counter and in production:

    • Intake notes turned into consistent risk flags
    • Claims documentation drafted consistently
    • Spotting decision support based on fiber and stain type
    • Exception reports that identify bottlenecks early
    • Training reinforcement for new staff and cross-trained roles

    This is operational visibility and compliance by design—not extra work.

    4) Skill Gaps and Turnover Are Where AI Delivers ROI First

    The essay highlights a view that AI capability is accelerating quickly. In service businesses, the practical translation is: AI can reduce the damage caused by uneven training, turnover, and role overload.

    Examples:

    • Counter scripts for high-risk garments
    • Standard explanation language for stain limitations
    • Consistent pricing and policy phrasing
    • Recovery scripts for late orders or quality concerns
    • Onboarding micro-guides for spotting steps

    AI does not replace craft. It reduces bottlenecks.

    5) Where Cleaners Should Be Cautious

    AI adds risk when used without structure:

    • Making promises to customers without capacity data
    • Producing policy language that is not aligned with actual practice
    • Auto-generating claims notes without supporting facts
    • Using generic chemical advice without fiber context

    The rule is simple: AI must follow your standards, not invent them.

    6) SmartCare OS Translation

    If members ask, "What do we do with this," the answer is: implement AI inside a framework so it is not random tools.

    SmartCare OS is that framework:

    • Operational Visibility — What is happening and where variability occurs
    • Compliance — Consistent documentation and defensible decisions
    • Capacity — Identify constraints before customers feel them
    • Resilience — Reduce rework, reduce claims, stabilize delivery

    This is how you make AI practical instead of noisy.

    Member Call to Action

    Choose one workflow where inconsistency costs you money.

    • Intake tagging and risk disclosures
    • Protein stain handling sequence
    • Pressing standards for high-end garments
    • Claims documentation process
    • Service recovery script

    Standardize the steps, then let AI accelerate consistency.


  • 4 Feb 2026 4:43 PM | Dawn Hargrove-Avery (Administrator)

    AI in Dry Cleaning Does Not Need More Commentary

    It Needs Execution

    Editor’s Note (Full Cycle – Wednesday Edition)
    AI continues to dominate conversations across the dry cleaning industry. This week’s Full Cycle opens with a perspective on where AI is already being applied operationally and why execution, not commentary, will define what comes next.

    Artificial intelligence is now a permanent part of the business conversation in dry cleaning. That alone represents progress. But there is a growing disconnect between how AI is discussed and how it is actually being used inside professional garment care operations.

    Much of the current conversation focuses on tools, platforms, or marketing applications. While those have their place, they are not where the real risk or value lies for cleaners. AI in this industry succeeds or fails at the operational level: garment intake, fiber sensitivity, stain assessment, compliance exposure, workflow consistency, and customer trust.

    This distinction matters.

    AI applied without deep industry knowledge does not modernize dry cleaning. It introduces risk.

    Professional garment care is governed by chemistry, regulation, material science, and customer liability. Any meaningful use of AI must operate within those constraints. It must support decision-making without overriding professional judgment. And it must be accountable to outcomes, not novelty.

    That is why the most effective AI work in dry cleaning today is not coming from generic software demonstrations or abstract thought leadership. It is coming from applied systems built inside the industry by people who understand garments, operations, and responsibility.

    Over the past several years, AI has quietly moved from experimentation to execution in this space. Integrated systems are already supporting claims documentation, business intelligence, customer experience coaching, operational guidance, membership support, and textile risk analysis. These are not theoretical models. They are live pilots and deployed tools shaped by real-world use, error correction, and continuous refinement.

    This is what operational AI looks like.

    It does not require cleaners to become technologists. It does not replace craftsmanship. It organizes knowledge, reduces inconsistency, flags risk, and supports better decisions at scale.

    The future of AI in dry cleaning will not be defined by who talks about it most loudly. It will be defined by who builds responsibly, tests rigorously, and integrates AI into the everyday realities of garment care.

    As an industry, we should welcome innovation. But we should also raise the bar for what qualifies as leadership.

    AI is no longer a concept waiting to be introduced to dry cleaning.
    It is already here.
    The real work is making sure it is done right.

    Dawn Hargrove-Avery
    Executive Director, National Cleaners Association
    Certified Chief AI Officer
    Focused on applied AI systems for professional garment care


  • 28 Jan 2026 2:37 PM | Dawn Hargrove-Avery (Administrator)


    Prompt of the Week

    Winter Garment Risk Awareness

    Use this prompt with your team or inside ChatGPT.

    *“You are a professional garment care advisor.
    A customer brings in a winter coat, wool trousers, or leather footwear with visible white residue from sidewalk salt or ice melting agents.

    Explain in clear, customer-friendly language:

    • What ice melting agents are

    • Why certain fabrics are more vulnerable

    • What risks may already exist before cleaning

    • What outcomes are realistic after cleaning

    Keep the explanation calm, professional, and reassuring.
    Avoid blame.
    Focus on setting expectations and documenting risk.”*

    How to Use This Prompt in Practice

    • Counter staff: Practice the explanation out loud during pre-shift huddles

    • Managers: Standardize intake language for winter garments

    • Owners: Review how this conversation protects claims, insurance, and customer trust


  • 28 Jan 2026 2:28 PM | Dawn Hargrove-Avery (Administrator)


    Winter weather brings more than cold temperatures. It also brings a sharp increase in garments exposed to ice melting agents tracked in from sidewalks, parking lots, and entryways. During heavy snow seasons, salt-related staining becomes one of the most common winter garment issues cleaners face.

    Understanding how these stains form, which garments are at risk, and how to address them properly is essential for protecting both the garment and the business.

    Why Ice Melting Agents Are a Problem

    Most commercial and household ice melting products are made with chloride salts, including:

    • Sodium chloride (rock salt)

    • Calcium chloride

    • Magnesium chloride

    • Potassium chloride

    • Blended salt compounds

    While many fabrics tolerate brief contact, wool, silk, suede, and leather are far more vulnerable. These materials can experience chemical damage on contact, leading to discoloration, surface breakdown, or permanent texture changes.

    This damage often occurs before the garment ever reaches the cleaner, which is why intake conversations and documentation matter as much as cleaning technique.

    The Risk Increases Over Time

    Fresh salt stains are generally easy to remove. The problem arises when:

    • The garment dries with salt residue present

    • Heat is applied in a dryer or reclaim cycle

    • The stain oxidizes with age

    Once oxidation occurs, the stain can become significantly more difficult to remove and may require stronger corrective chemistry, increasing the risk of fabric damage.

    Early identification and prompt pre-spotting are critical.

    Recommended Pre-Spotting Procedure

    For fresh salt stains, the following steps are typically effective on most fabrics:

    1. Lightly mist the stained area with water

    2. Flush thoroughly with steam

    3. Feather with air until dry

    If the stain remains:

    1. Apply a neutral lubricant or tannin formula

    2. Use gentle mechanical action

    3. Flush again with steam

    4. Feather until dry

    For older or oxidized salt stains, a 3 percent hydrogen peroxide solution may be required. This step should be approached cautiously and only when fabric sensitivity allows.

    Intake Matters as Much as Technique

    Salt damage often creates expectations problems rather than cleaning failures. Customers may not realize the exposure has already compromised the garment.

    Best practice includes:

    • Advising customers of potential permanent damage

    • Noting salt exposure on the intake ticket

    • Setting realistic expectations before processing

    Clear communication at intake protects both the cleaner and the customer relationship.

    The Full Cycle Perspective

    Salt stains are a classic example of how small environmental factors can create outsized risk if not addressed early. When cleaners slow the process just enough to identify exposure, document risk, and communicate clearly, winter damage becomes manageable rather than costly.

    This is not about doing more. It is about doing the right steps at the right time.


  • 21 Jan 2026 5:56 PM | Dawn Hargrove-Avery (Administrator)


    What Dry Cleaners Should Know

    In professional garment care, success at the spotting board is not about shortcuts. It is about control, judgment, and knowing your tools.

    While commercial spotting agents remain essential, there are a few common household products that can support stain and odor removal when used correctly and carefully. Used improperly, however, these same products can create irreversible damage.

    This article outlines how experienced cleaners use certain everyday products as support tools, not replacements, in professional spotting workflows.

    Why Household Products Can Play a Role

    Some household items have chemical properties that make them useful in specific situations. When paired with proper testing and technique, they can help address:

    • Residual protein or tannin staining

    • Light scorch marks

    • Persistent odors

    • Minor cosmetic color loss

    The emphasis is always on precision, restraint, and fabric safety.

    Common Products Used by Professionals

    Hydrogen Peroxide (3%)

    A mild oxidizer, 3 percent hydrogen peroxide is commonly used to help remove light protein, tannin, scorch marks, and some inks or dyes.

    • Best for finishing or refining results

    • Must always be tested first

    • Not suitable for all dyes or fabrics

    Higher-strength peroxide solutions exist but require significantly more caution and experience.

    Glycerin

    Glycerin acts as a non-detergent lubricant, which makes it useful during certain bleaching or digesting steps.

    • Helps prevent uneven lightening

    • Does not leave detergent residue

    • Especially useful on light-colored fabrics

    Because it evaporates slowly, glycerin offers greater control during spotting.

    Baking Soda

    Baking soda is a mild alkali that can support certain spotting formulas.

    • Can help accelerate peroxide action

    • Can be combined with neutral lubricants for gentle protein treatment

    • Should never be used aggressively or without testing

    Odor Neutralizing Sprays

    Some spray-type odor removal formulas contain antimicrobial agents that neutralize odor-causing bacteria rather than masking smells.

    • Effective for certain garment odors

    • Must be applied from a safe distance

    • Over-wetting can cause blotching or rings

    These products are tools, not cures for underlying contamination or improper cleaning.

    Chlorine Bleach Pens

    Bleach pens allow precise application of chlorine bleach in very limited situations.

    • Useful for trace stains on appropriate fabrics

    • Avoids spills and overuse

    • Never used on wool or silk

    • Always requires testing

    Precision matters more than strength.

    Mineral Oil

    Mineral oil is sometimes used for cosmetic correction, particularly on delicate fabrics like silk.

    • Can help visually mask color loss

    • Applied carefully with an applicator or in a controlled solvent bath

    • Not a repair, but a visual enhancement

    The Most Important Rule: Test First

    Every fabric, dye, and stain behaves differently. Even products considered “mild” can permanently alter a garment.

    Professional best practice includes:

    • Pre-testing every product

    • Using the smallest effective amount

    • Controlling moisture and dwell time

    • Understanding when not to proceed

    The Bottom Line

    Household products are not shortcuts. In professional hands, they can be useful support tools at the spotting board. In untrained use, they increase liability and risk.

    Precision, patience, and proper training protect the garment and your reputation.

    When in doubt, less is more.


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News Update:

We have been made aware that National Waste sold its facility to Clean Earth.

www.cleanearth.com/contact

If you visit, www.cleanearth.com/contact and fill out the form, you can get registered as a customer.

Clean Earth Phone Number: 866-303-7644

Another option for waste removal is.

Clean Harbors- Clean Harbors recently purchased Safety Clean

Visit www cleanharbors.com/locations for a complete list of the facilities.

example NY  631-703-3451     Bridgeport NJ 856-467-3103

ERC FAQ's



I already received PPP. Can I still get the ERC?

The simple answer is YES! On December 27, 2020, The Taxpayer Certainty and Disaster Tax Relief Act of 2020 was enacted. This Act modified the ERC credit rules. One change included a modification that permits a company to have a PPP loan, and also be able to take advantage of the ERC credit. But, you may not use the same dollar for dollar funds. We consider this when we process your ERC credit.

How will my ERC tax credit be disbursed?

We are proud to have established the ERC Master Trust for the benefit of our clients’ Tax Refunds. Eastern Point Trust Company (EPTC) — the same prestigious Trust Company that assisted in disbursing the Flint Contaminated Water Fund, The NFL CTE Concussion Fund, the Bernie Madoff Settlement Fund, and many other nationally known Escrow accounts — is our trust company. Feel safe knowing that all funds received are deposited directly into the Eastern Point Trust Company and are placed into the ERC Master Trust; then dispersed into separate sub-trust accounts for each individual client.

How do I repay the ERC Credit?

Another simple answer…You don’t! The ERC credit IS NOT A LOAN! The ERC credit is a refundable tax credit that you are eligible to receive if you meet the criteria. If you do not file for the ERC credit and are eligible for it, you will lose out on receiving thousands, or even millions of dollars that are actually owed to you.


How long does it usually take to get my ERC Credit?

The process works in 5 easy steps:

  • You submit our pre-qualifying questionnaire.
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  • Within 2-7 days (and at no charge), we provide you the exact dollar amount of the credit you are owed.
  • If you decide to contract with us, you will select a payment option, and your claim will be filed.
  • Your refund will be generated by the IRS (there is currently a 20-week minimum backlog for ERC refunds).

Why should I contract ERC Helpdesk…can’t my CPA file for me?

The only service ERC Helpdesk provides is the calculation and filing for ERC refunds—which is based on your payroll. Your CPA likely handles your business income tax returns. ERC is likely not their specialty. While your CPA can file for your ERC, it is highly likely that because of their unfamiliarity with The Cares Act and ERC credit, they might miss important findings that can make your ERC refund greater. To put it in simpler terms, we are ERC credit experts; your CPA is a tax specialist. You need an ERC expert to maximize the opportunity for a greater ERC refund. In fact, many CPAs and payroll companies do not want to file ERC and refer their clients to us.

Can I qualify for the ERC program if my 2020 revenue went up?

Another resounding, “YES!” There are two qualifiers for 2020: either revenue reduction, or a “full or partial shutdown of your business due to COVID-19.” The IRS describes this as “A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.” These are some examples of possible qualifying events:

A business that ordinarily met with clients in person had to cancel meetings due to COVID-19.

A restaurant was forced to close and/or limit its on-site dining capacity due to COVID-19 restrictions.

Supply chain interruptions caused your business to have delayed production timelines.

COVID-19 restrictions lowered the amount of people who could attend an event with your business.

Your business had to reduce operating hours due to COVID-19 cleaning requirements and restrictions.

Will the IRS run out of ERC funds?

The government has funded $400 billion for the ERC credit program. When the funds are exhausted, the program will end. If you are an eligible employer, currently, there are funds available, and you will receive the ERC credit. The faster you file, the more likely you are to receive your credit.

As an owner, do my wages or the wages of any family member I employ qualify?

Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has 50% or less ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.

Is the ERC Credit taxable?

For federal income tax purposes, you will need to provide the credit information to your CPA and report it on your tax return.

We have researched the Employee Retention Credit, but we do not offer accounting or legal advice. Please contact your attorney and CPA regarding this program.

Blog posts

According to the record, The City Council took this action based on the recommendation of the Workplace Taskforce, of which the NCA was an active member.

On July 18, 2021, the City enacted Local Law 80 of 2021, which repeals the licensing requirement for retail laundries. This repeal goes into effect on December 31, 2021.

Beginning December 31, 2021, you will no longer need a Retail Laundry license from DCWP to operate your retail laundry business. Because the license is no longer required, DCWP will no longer accept new or renewal license applications.

NOTE: Industrial Laundry and Industrial Laundry Delivery businesses will continue to be licensed. The license repeal is only for Retail Laundries.

NEXT STEPS:

On December 31, 2021, your current Retail Laundry license will expire and you may take down DCWP’s license sign. You will not need to surrender or renew your Retail Laundry license.

Even though you will no longer need a license for your retail laundry, you will still be required to comply with other laws DCWP enforces, such as:

  • Your business’s bills, tickets, business cards, advertising and stationery must list your business name and address;
  • Every document (example: receipt, delivery ticket, invoice, statement, etc.) that contains charges to a consumer must accurately and clearly state each of the laundry charges, not just the total charge;
  • All vehicles used for delivery of laundry must include your business’s name, address, and telephone number in letters at least 2 inches in height;
  • You must post a price list where orders are placed or payments are made by consumers;
  • Your price list must contain a list of services offered, the minimum price charged for each service, and a description of any factors that may cause the price to be higher than the minimum. Your price list must not contain different prices for men and women for the same services;
  • If scales are used to weigh laundry on the premises, each scale must have a DCWP seal and must be inspected annually;
  • If your business offers self-service laundry machines to the general public:
  • an attendant must be on site from 8:00 P.M. until closing or 6:00 A.M. the following day, whichever is earlier; and
  • you must post a sign in a location that is clearly visible to consumers which states to whom complaints and claims for refunds must be made.


Repeal of Retail Laundry License


COVID-19 Response Document


https://www.governor.ny.gov/news/no-20213-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency

Sections 3203 and 4510 of the Insurance Law are modified to extend the grace period for the payment of premiums and fees to 90 days for any life insurance policyholder or fraternal benefit society certificate holder, as those terms are used in such sections, facing a financial hardship as a result of the COVID-19 pandemic;  

Sections 3203, 3219, and 3220 of the Insurance Law are modified to provide a life insurance policyholder or annuity contract holder or a certificate holder, as those terms are used in such sections, under a group policy or contract with 90 days to exercise rights or benefits under the applicable life insurance policy or annuity contract for any policyholder or contract holder or certificate holder under the group policy or contract who is unable timely to exercise rights or benefits as a result of the COVID-19 pandemic;

Section 1116 and Articles 34, 53, 54, and 55 of the Insurance Law and Sections 54 and 226 of the Workers’ Compensation Law are modified to impose a moratorium on an insurer canceling, non-renewing, or conditionally renewing any insurance policy issued to an individual or small business, or, in the case of a group insurance policy, insuring certificate holders that are individuals or small businesses, for a period of 60 days, for any policyholder, or in the case of a group insurance policy, group policyholder or certificate holder, facing financial hardship as a result of the COVID-19 pandemic.  The foregoing relief shall also apply to the kinds of insurance set forth in paragraphs (16), (17), (20), (21), (24), (26), and (30) of Section 1113(a) of the Insurance Law.  For purposes of this Executive Order, a small business shall mean any business that is resident in this State, is independently owned and operated, and employs one hundred or fewer individuals;

City

New York City – 5 Boroughs

NY Hero Act, Model Airborne Infectious Disease Exposure Prevention Plan

Protecting New York Workers from Airborne Diseases

On May 5, 2021, Governor Andrew Cuomo signed the New York Health and Essential Rights Act (NY HERO Act) into law. The law mandates extensive new workplace health and safety protections in response to the COVID-19 pandemic. The purpose of the NY HERO Act is to protect employees against exposure and disease during a future airborne infectious disease outbreak.

Under this new law, the New York State Department of Labor (NYS DOL), in consultation with the NYS Department of Health, has developed a new Airborne Infectious Disease Exposure Prevention Standard, a Model Airborne Infectious Disease Exposure Prevention Plan, and various industry-specific model plans for the prevention of airborne infectious disease. Employers can choose to adopt the applicable policy template/plan provided by NYS DOL or establish an alternative plan that meets or exceeds the standard’s minimum requirements.

The airborne infectious disease exposure prevention plans must go into effect when an airborne infectious disease is designated by the New York State Commissioner of Health as a highly contagious communicable disease that presents a serious risk of harm to the public health. 

Currently, while employers must adopt plans as required by the law, as of the date of this writing no designation has been made and plans are not required to be in effect.

The standard and model plans are available in English and will be available in Spanish in the coming days. Employers are required to provide a copy of the adopted airborne infectious disease exposure prevention plan and post the same in a visible and prominent location within each worksite.

Templates that apply to the Dry Cleaning Industry

Eviction Updates by State


Economic Injury Disaster Loan Assistance:

https://www.sba.gov/disaster/apply-for-disaster-loan/index.html

Online Application:

https://covid19relief.sba.gov/#/

U.S. SMALL BUSINESS ADMINISTRATION ECONOMIC INJURY DISASTER LOAN SUPPORTING INFORMATION

https://www.sba.gov/disaster/apply-for-disaster-loan/pdfs/Economic%20Injury%20Disaster%20Loan%20Supporting%20Information%20(P-019).pdf

Additional Forms

A Disaster Assistance loan officer may request you to fill out the following additional forms:

Home Loans or Sole Proprietor Loans

Download corresponding forms below:

Mailing Instructions

All required documents listed below under Forms must be returned. All forms requiring signature must be signed and dated. Incomplete applications will not be accepted.

U.S. Small Business Administration

Processing and Disbursement Center

14925 Kingsport Rd.

Ft. Worth, TX 76155-2243

If you have any questions, please contact 1-800-659-2955 or (TTY) (800) 877-8339

Use this form to upload your disaster loan application.

the 100 most active SBA 7(a) lending banks

https://www.sba.gov/article/2020/mar/02/100-most-active-sba-7a-lenders

State

New York- Insurance

NYS Executive Order 202.13   Re-Insurance Law Modifications

Insurance Carriers must allow a 60 day grace period

https://www.governor.ny.gov/news/no-20213-continuing-temporary-suspension-and-modification-laws-relating-disaster-emergency

Sections 3203 and 4510 of the Insurance Law are modified to extend the grace period for the payment of premiums and fees to 90 days for any life insurance policyholder or fraternal benefit society certificate holder, as those terms are used in such sections, facing a financial hardship as a result of the COVID-19 pandemic;

• Sections 3203, 3219, and 3220 of the Insurance Law are modified to provide a life insurance policyholder or annuity contract holder or a certificate holder, as those terms are used in such sections, under a group policy or contract with 90 days to exercise rights or benefits under the applicable life insurance policy or annuity contract for any policyholder or contract holder or certificate holder under the group policy or contract who is unable timely to exercise rights or benefits as a result of the COVID-19 pandemic;

• Section 1116 and Articles 34, 53, 54, and 55 of the Insurance Law and Sections 54 and 226 of the Workers’ Compensation Law are modified to impose a moratorium on an insurer canceling, non-renewing, or conditionally renewing any insurance policy issued to an individual or small business, or, in the case of a group insurance policy, insuring certificate holders that are individuals or small businesses, for a period of 60 days, for any policyholder, or in the case of a group insurance policy, group policyholder or certificate holder, facing financial hardship as a result of the COVID-19 pandemic.  The foregoing relief shall also apply to the kinds of insurance set forth in paragraphs (16), (17), (20), (21), (24), (26), and (30) of Section 1113(a) of the Insurance Law.  For purposes of this Executive Order, a small business shall mean any business that is resident in this State, is independently owned and operated, and employs one hundred or fewer individuals;

Small Business

Federal

CARES

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.

What will lenders be LOOKING FOR?

In evaluating eligibility, lenders are directed to consider whether the borrower was in operation before February 15, 2020, and had employees for whom they paid salaries and payroll taxes or paid independent contractors.

Lenders will also ask you for a good faith certification that:

1. The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations

2. The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments

3. Borrower does not have an application pending for a loan duplicative of the purpose and amounts applied for here

4. From Feb. 15, 2020, to Dec. 31, 2020, the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold emergency loans made between Jan. 31, 2020 and the date this loan program becomes available into a new loan)

If you are an independent contractor, sole proprietor, or self-employed individual, lenders will also be looking for certain documents (final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship.

Revised PPP application form (4/2/2020)

https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

Revised PPP Loan Updated (6/2020)

As of Thursday morning, the Senate unanimously approved a new bill that makes PPP loans more flexible in how and when they’re used. The House passed its version last week. Now, the bill just needs to be signed by the president for it to become law.

The centerpiece of the CARES Act, the PPP, was intended to prop up small businesses like dry cleaners and help keep small business employees on the payroll. Loans can be for 2.5 times payroll costs, with no collateral. Most significantly, PPP loans can be forgiven, fully or in part, depending on if borrowers maintain headcounts and payrolls at pre-pandemic levels and use their loan for permitted expenses.  Many cleaners applied for, and some received this assistance

The money can be used for payroll (no more than $100,000 annual salary per employee) as well as benefits (including paid sick leave and insurance premiums) and taxes on compensation. The new bill passed by the Senate allows for up to 40% (rather than 25%) of the loan to be used to cover mortgage interest, rent, and utilities.

The new bill also expands the amount of time borrowers have to spend their loan and have them forgiven. Before, covered expenses had to be incurred over the eight weeks right after loan disbursement. Now, small business owners have 24 weeks. Also, they have until December 31, 2020 (instead of June 30) to rehire or restaff up to their pre-pandemic level.

Any portion of the loan that is not forgiven will carry an interest rate of 1.0% and is due to be paid back within five (instead of two) years. However, payments are deferred for the first six months. There’s no pre-payment penalty.


PPP Loan Forgiveness

Borrowers will have their loans forgiven if they use the money for designated expenses. Participants are eligible for loan forgiveness for the amounts spent on authorized expenses over 24 weeks after loan disbursement.

Total payments for payroll may be forgivable. Mortgage interest, rent, and utilities are also forgivable, up to 40% of the PPP loan. (Note that if your loan is forgiven, these expenses covered by the loan are not tax-deductible, the IRS recently stated in Notice 2020-32.)

To get the entire amount of the loan forgiven (assuming that at least 60% is spent on payroll and the rest on permitted expenses), you must meet two criteria. 

First, the full-time employee headcount cannot decline from average monthly levels during 2019 or during the past 12 months. If your business launched in the second half of 2019, you can use average headcounts from January 1, 2020, to February 29, 2020. If your business is seasonal, you can base your monthly averages on numbers from February 15, 2019, or March 1, 2019, to June 30, 2019.

Second, for loans to become full grants, employers cannot cut salaries or wages. If they do, the forgiven amount will be reduced. Employers who already let workers go (between February 15 and April 26, 2020) have until December 31 to restaff.

The SBA has released the application for PPP loan forgiveness. It is two pages, plus nine pages of instructions and worksheets.  Three big changes to note:

1.      Instead of having to use your loan to cover the eight weeks right after loan disbursement, borrowers can start with the first pay period after the loan disbursement. (So if you receive the loan on Thursday, and your next pay period starts on Sunday, you can start with that Sunday pay period.)

2.      Borrowers are not required to report all allowed non-payroll costs (i.e., rent, mortgage interest, and utilities) if they don’t want to include them in the forgiveness amount. Before, there was some confusion over this; the flexibility may help borrowers keep their non-payroll costs within the required percentage (25%).

3.      The SBA recognizes that some employees who have been let go may get new jobs, or some may be fired with cause. So now there is a safe harbor for these situations.

--  The SBA has a summary of loan terms here.  link address.....https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf 

If you were wary of applying for PPP money before due to the nebulous information regarding forgiveness, consult with your accountant about whether the new terms make it a more comfortable fit for your business.

To increase your likelihood of getting money in the new round of funding, you should line up a bank and apply right away. Applications have slowed down compared to the first round, but the program is first-come, first-served. The deadline is June 30.  


Small Business Continuity Fund

1. As of March 27th, applications are open for INTEREST-FREE LOANS through the Small Business Continuity Fund. Go to https://www1.nyc.gov/nycbusiness/article/nyc-small-business-continuity-loan-program

The Fund, a public-private partnership between Goldman Sachs 10,000 Small Businesses, Tapestry, Inc.’s Coach Foundation and Pursuit, offers loans of up to $75,000 to small businesses in New York City as they deal with various challenges in response to the novel coronavirus. To qualify, businesses must:

• Be located within the five boroughs of New York City

• Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue

• Employ 99 employees or fewer in total across all locations • Demonstrate ability to repay the loan

• Have no outstanding tax liens or legal judgments

As part of the application, businesses will be required to demonstrate a revenue decrease by providing documentation such as: point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns, or CPA-certified profit & loss statements. Goldman Sachs Foundation will provide a grant to support technical assistance and capacity-building for the Small Business Continuity Fund.


The Employee Retention Grant Program

2. The Employee Retention Grant Program is available to help small businesses deal with the impact of COVID-19. Go to https://www1.nyc.gov/nycbusiness/article/nyc-employee-retention-grant-program

The City has launched the Employee Retention Grant Program to help retain employees as businesses face decreased revenue.

This program is available to New York City businesses with:

a. one to four employees and

b. can demonstrate at least a 25% decrease in revenue as a result of COVID-19.

Eligible businesses will receive a grant covering up to 40% of their payroll for two months. Businesses can access up to $27,000.

Who Can Apply?

Businesses must:

  • Be located within the five boroughs of New York City

  • Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue

  • Employ 1-4 employees in total across all locations

  • Have been in operation for at least 6 months

  • Have no outstanding tax liens or legal judgments

3. Northern Manhattan Emergency Recovery Fund

The Northern Manhattan Emergency Recovery Fund has received $2 million from Presbyterian Hospital for immediate relief to aid in the recovery and development of the community. The Fund will be administered by the Hispanic

 Federation. Go here for details https://hispanicfederation.org/nomafund/


For Employees

Federal

State 

City 


Things to Consider

Miscellaneous

The New York State ban on plastic bags has been postponed from April 1st toMay 15th Utilities have been ordered to not shut off service for gas, water, or electricity.

For NYC Employees

Verizon, Spectrum, and other cable providers' offer for free internet for households with school-age children. Verizon is also offering other learning tools and some premium TV channels offered to customers at no additional cost. Read the release: http://verizon.com/about/news/verizon-customers-learning-tools-premium-tv

Con Ed has halted all meter reading and installation of smart meters; stopped shutoffs of electric, natural gas or steam service due to non-payment resulting from the health crisis; waived new late-payment charges; and suspended the fee charged to a customer who is unable to grant access to their property. They WILL continue to shut off service when there is a safety issue. Customer service walk-in centers are shut. Residential customers can choose one of the alternate ways to pay their bill, including online at My Account, by mail with a check or money order, or by phone at 1-888-925-5016,

SNAP ASSISTANCE. The nonprofit expensify.org will reimburse SNAP participants $50 after they use their EBT card for approved purchases and submit a receipt. They are allocating these funds to help families in need to purchase essential groceries during the COVID-19 outbreak. There's no "catch" and the money is directly deposited into the participant's bank account. Employees should visit Expensify.org/hunger for more information.

Beginning Monday, March 23rd, free meals will be distributed at more than 400 sites across the city. Students may pick up three meals at one time. Find a location near you.

The New York State ban on plastic bags has been postponed from April 1st to May 15th 


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