A new New York law will require written estimates on every job and explicit customer approval before performing any work—a significant shift from current practice.
Most auto service shop owners in New York don't realize that under current law, they only have to provide a written estimate if a customer asks for one. That's about to change—and the difference matters more than you might think.
New York State bill S00516, which becomes law 90 days after passage, introduces a mandatory written estimate requirement and a strict consent rule that will reshape how shops handle customer approvals and billing.
Starting 90 days after the bill becomes law, every repair estimate must be provided in writing. That's the first change. But the second is bigger: no work can be performed or billed unless the customer has explicitly consented to it—even if the work falls within the range of an original estimate.
Under today's rules, shops are prohibited from charging more than an estimate, but they can perform work within that estimate without getting fresh approval for each task. S00516 eliminates that practice. Any work—whether it's a single part replacement or labor on an approved job—requires affirmative customer sign-off before it happens.
The law also requires shops to disclose whether parts supplied are under warranty. Violations carry fines.
This applies to all motor vehicle repair shops operating in New York. Whether you run a small independent shop or a larger operation, the requirements are the same: written estimate, customer consent, warranty disclosure.
The practical impact is straightforward but significant. Your current workflow—where a technician diagnoses a problem, provides a verbal or written estimate, and proceeds with work once the customer approves the price—will need to change.
Going forward, you'll need documented consent before starting any work. If a diagnostic reveals an additional issue during repair, you cannot proceed with that additional work without contacting the customer and getting written approval first. This applies even if the total bill stays under the original estimate.
For shops, this means:
• Written estimates become standard procedure, not optional
• You'll need a clear consent process—likely a signed form or digital acknowledgment—before work begins
• Follow-up approvals are required if new issues emerge
• Warranty status of all parts must be documented and disclosed
The 90-day window from the bill's effective date gives shops time to update intake forms, train staff on the new consent process, and adjust workflows. Starting now—before the law takes effect—is the smart move.
The law is found in Section 1, Subdivision 2 of S00516 (lines 19-23 on page 2 of the bill text).
For a detailed, shop-specific guide to compliance, contact your local auto service trade association or the New York Department of Motor Vehicles.