SEIU 32BJ Contract Guide: Commercial Cleaning

SEIU Local 32BJ — the Service Employees International Union Building Service Workers — is the largest property-services union in the United States. If you operate, bid, or subcontract commercial cleaning in New York City, New Jersey, Connecticut, Philadelphia, Boston, Washington DC, or Florida, you will encounter 32BJ-organized buildings. Understanding the contract's wage tables, benefit fund obligations, and grievance procedures is not optional — it determines whether you can bid competitively and stay solvent.

Geographic Scope and Jurisdiction

32BJ's jurisdiction covers multiple districts, each with its own area-specific addendum to the master agreement. The main geographic units for commercial cleaning:

The union's LM-2 financial disclosure filings — required annually by the DOL under LMRDA — are publicly available at DOL OLMS and show current membership counts, officer compensation, and revenues by district.

Wage Schedules: NYC Commercial Building Cleaner (2022–2027)

The NYC Commercial Office Building contract is the benchmark. Rates below are from the 2022–2027 master agreement, with scheduled escalations:

Overtime premium: Time-and-a-half after 8 hours/day or 40 hours/week, consistent with New York Labor Law Article 19. Double-time applies for Sunday work in certain building classifications.

Shift differentials: Evening shift (4pm–12am) adds $0.40–$0.55/hr; overnight shift (12am–8am) adds $0.65–$0.80/hr depending on building classification.

Benefit Fund Contribution Requirements

This is where non-union contractors most frequently miscalculate bid costs when transitioning a unionized account. The required employer contributions (per hour worked per covered employee) under the 2022 agreement:

For a Class 3 worker at $25.69/hr (2024) plus $14.00/hr in funds, the fully-burdened labor cost before payroll taxes is $39.69/hr. Add FICA (7.65%), SUI, and workers' comp and you reach approximately $44–$46/hr effective labor cost — roughly 2× the base wage.

Successor Contractor Obligations (Critical for Bid Transitions)

Article XVI of most 32BJ agreements contains a successor clause: if you win a contract from an existing 32BJ signatory at a building with 25+ covered employees, you may be required to recognize the union, maintain existing wage scales, and offer employment to the incumbent workforce for a period (typically 60–90 days).

This matters because:

1. A below-market bid that assumes non-union labor rates will be reversed by a NLRB unfair-labor-practice charge if the successor obligation applies.
2. NYC Local Law 27 (the "Displaced Building Service Workers Act") independently requires 90-day employment retention when a building services contract changes hands at a qualifying commercial building.
3. Similar statutes exist in Washington DC (Living Wage Act), San Francisco, Los Angeles, and Maryland.

Due diligence checklist before submitting a bid on a 32BJ building:

• [ ] Confirm whether the incumbent contractor is 32BJ signatory (check NLRB election records or ask the facility manager)
• [ ] Obtain a headcount and current wage/benefit schedule for the incumbent workforce
• [ ] Determine which, if any, local successor-retention laws apply
• [ ] Model your bid at full 32BJ contribution rates even if you intend to negotiate
• [ ] Consult labor counsel before submitting if the account is > $500K ARR

Grievance and Arbitration Procedure

32BJ contracts follow a standard five-step grievance ladder:

1. Step 1: Employee and supervisor attempt informal resolution within 10 calendar days of incident.
2. Step 2: Written grievance filed with local union representative + employer HR within 20 days.
3. Step 3: Meeting between union district director and employer operations manager; response within 15 days.
4. Step 4: Referral to Joint Industry Board (JIB) — a labor-management body; JIB decision is final on scheduling and safety disputes.
5. Step 5: Binding arbitration before a mutually agreed arbitrator; arbitrator fees split equally.

The most common categories of grievances filed in commercial cleaning: (1) improper assignment of work outside classification, (2) failure to pay correct shift differential, (3) discipline without just cause, (4) benefit fund contributions in arrears.

SEIU Local 1 and Other Regional Locals

32BJ is the Eastern US union. For other regions:

Each local operates under a separate collective bargaining agreement, though the national SEIU provides model language for wages, benefits, and grievance procedures. See the related articles in this cluster for guides specific to each local.

NYC-Specific Regulatory Layering

Union wage obligations intersect with (do not replace) city and state wage laws:

• NYC Minimum Wage (2025): $16.50/hr for employees ≥ 11-person firms. 32BJ rates are substantially above this floor.
• NYC Paid Safe and Sick Leave: 40 hours/year for employers with 5–99 employees; 56 hours for 100+. Union sick-leave provisions in the CBA may be more generous — the more generous provision applies.
• NYC Prevailing Wage Law (Local Law 196 / NYC Admin Code §6-130): Requires prevailing wage at Class A commercial office buildings with 30+ tenants receiving city financial benefits. Rates are set annually by the NYC Comptroller and often exceed 32BJ minimums.
• NYC Living Wage Law (ALLL, NYC Admin Code §6-134): Covers service workers at city-subsidized properties. Check the building's property tax benefit history.