A buyer needs to understand both the paid staffing record and the work required after the seller leaves. Reconcile roles, hours and employer costs first, then have the applicable employment and insurance questions reviewed for the actual business and transaction.
Connect payroll to work performed
Request authorized payroll registers, time records, job descriptions, pay notices, schedules, overtime detail and employer-cost evidence for matched periods. Use a controlled data room with appropriate redaction and access. Reconcile gross pay and employer costs to accounting records; the amount leaving the bank can include withholding, benefit payments or prior-period items that require their own bridge.
| Review layer | Evidence | Question |
|---|---|---|
| Operating coverage | Open hours, shift roles and actual tasks | Who opens, closes, maintains equipment and resolves incidents? |
| Compensation | Rates, paid hours, overtime, bonuses and benefits | Does the recorded cost match the work and applicable pay basis? |
| Owner/family work | Task and time record | What continues and how will it be covered? |
| Absence coverage | Leave, relief and backup plan | Who covers each essential task when the primary person is absent? |
| Employment obligations | Policies, agreements, records and adviser review | Which rules and unresolved issues apply to this employer? |
Use current New York rates with their scope
For 2026, the general hourly minimum wage is $17 in New York City, Long Island and Westchester County, and $16 elsewhere in the state. Confirm the work location, applicable wage order, actual role and any other requirement using the New York Department of Labor’s current guidance. A statutory floor is not a staffing quote or evidence of the rate needed to recruit a replacement.
Do not apply hospitality tip-credit tables to ordinary car-wash work. New York DOL’s tipped-worker guidance states that tip credits are not permitted in miscellaneous industries. Verify classification and pay practice with the appropriate adviser. Overtime and exemptions depend on applicable rules and duties, not simply a “manager” title or salary. A payroll review should identify the actual basis rather than assume every salaried role is exempt.
Scope leave and scheduling rules carefully
New York’s paid sick leave guidance distinguishes employer size and, for the smallest employers, net income. It provides up to 56 paid hours for employers with 100 or more employees; up to 40 paid hours for employers with 5–99 employees; and up to 40 hours for employers with four or fewer, paid when prior-year net income exceeds $1 million and unpaid otherwise. Review accrual/front-loading, carryover, records and any other applicable leave provisions separately.
NYC location alone does not establish coverage under the retail Fair Workweek provisions. The DCWP retail FAQ describes coverage based on employee count and primarily selling consumer goods. Have the actual employer and business activities evaluated rather than labeling every car wash covered or exempt. The practical staffing model should still include reliable coverage and the real cost of schedule changes.
Price continuing owner work without unsupported discounts
Use the owner replacement labor tool to identify tasks, hours, qualified coverage and employer burden. Do not assume one low-cost attendant can replace management, mechanical work and off-hours availability. A seller’s age is not a basis for an automatic valuation deduction; the relevant questions are which responsibilities continue and what supported replacement arrangement covers them.
As a fictional cost illustration, a role requiring 40 paid hours each week at an entered $25 rate costs $52,000 in annual base pay over 52 weeks. An entered 20% employer-cost assumption adds $10,400, producing $62,400 before any separately identified overtime or extra relief. Neither the rate nor the burden percentage is a market quote or statutory payroll-tax formula. Avoid adding the same burden or relief cost again elsewhere.
Review transition obligations and insurance evidence
An asset purchase or stock purchase label alone does not resolve every employment, tax, benefits or successor-liability question. Counsel and the transaction advisers should evaluate the facts, agreements and applicable rules. Record who is responsible for offers, communications, payroll setup, accrued balances, employee records and any unresolved claims. Do not promise either that all liabilities follow the buyer or that an asset purchase removes them.
Review actual workers’ compensation and other employer coverage with the insurance professional. Policy documents, classifications, payroll estimates, claims and ownership-change rules matter. Do not treat a certificate as the complete coverage determination or assume an experience modifier transfers unchanged. The insurance evidence guide provides the broader review structure.
Connect the staffing plan to operating economics
Separate committed coverage from volume-driven work and additional shift costs in the retail package model. Carry supported payment timing into the cash plan. Record payroll-provider acceptance and coverage effective times in the closing handoff. A complete payroll file is evidence for review, not a conclusion that every employment obligation has been satisfied.
Resolve the next evidence gap
Payroll reconciliation. Use the same reporting scope when carrying a result into another review; the tools do not transfer entries.
Sources and scope
Official and original sources checked October 17, 2026. These sources support the identified rules and methods; they do not verify a particular business or property.
- NY DOL — NY DOL · Minimum wageRegional wage floor and current review source; no automatic future escalation. Actual employer coverage requires review; not a transaction-specific legal determination.
- NY DOL — NY DOL · Tipped workers2026 rates and no miscellaneous-industry tip credit. Actual employer coverage requires review; not a transaction-specific legal determination.
- New York State — New York State · Paid sick leaveEmployee-count and small-employer income distinctions. Actual employer coverage requires review; not a transaction-specific legal determination.
- NYC DCWP — NYC DCWP · Retail Fair Workweek FAQRetail coverage depends on employer size and primarily selling consumer goods; NYC location alone does not establish coverage. Check the actual business and any updated law. This source does not establish that every car wash is covered or exempt.
Continue your review
Verify the revenue · Normalize earnings · Model the cash flow