Korean American Nail Salon Ass'n of New York, Inc. v. Cuomo
This case involves a hybrid CPLR article 78 proceeding and declaratory judgment action brought by two trade groups representing Korean and Chinese owned nail salons in New York State. Petitioners sought to vacate the September 4, 2015 emergency rule by the NYS Department of State (DOS), which mandated wage bonds, and challenged the August 7, 2015 certification by the Department of Financial Services (DFS) that wage coverage was 'readily available.' These actions followed state investigations into wage violations in nail salons and new legislation aimed at protecting workers in the industry. The court ultimately rejected all of petitioners' arguments, finding no arbitrary action by the DFS, sufficient statutory authority, and proper justification for the emergency rule under the State Administrative Procedure Act. Claims of due process and equal protection violations were also dismissed, as the court determined the legislation served a legitimate state interest in worker protection. Consequently, the petition was dismissed, and injunctive relief was denied.