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CA Car Wash Workers Win $1M Settlement Print E-mail
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Wednesday, 25 January 2012 00:00
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CA Car Wash Workers Win $1M Settlement

By Kimberly Mirando

 

Settlement(LEGAFI) -- Eight California car washes have been ordered to pay a combined settlement of over $1 million to employees who were underpaid and treated unfairly in the past. The settlement is the result of a civil lawsuit filed by Attorney General Kamala D. Harris, who targeted car wash owners in Fair Oaks, Folsom, Irvine, Laguna Hills, Laguna Niguel, Santa Monica, San Ramon and Venice who did not pay their workers appropriate wages, denied them rest and meal breaks, and created false time records.

"Workers at these car washes were taken advantage of by unscrupulous employers who illegally denied them the pay and benefits they earned,” Harris said in a statement. “I am pleased that the resolution of this case will allow workers to receive the pay they are owed.”

Investigators uncovered evidence showing the car washes routinely denied workers minimum wages and overtime, failed to pay wages owed to those who quit or were terminated, denied rest and meal breaks, and created false records of time worked.

The wage lawsuit said the car washes required employees to report to work several hours in advance and be available, unpaid, until business picked up. When workers were paid, many received paychecks that could not be cashed because of insufficient company funds. Additionally, the car washes operated for years without licenses from the Labor Commissioner, which are required under California law.

The lawsuit alleged that the car washes violated California Business & Professions Code section 17200 and Labor Code sections 203 and 203.1, sought lost wages and civil penalties, and an injunction to prevent the defendants from committing similar violations in the future.

Along with more than $1 million in restitution of unpaid wages and civil penalties, the car washes are required to pay $50,000 in employment taxes

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Updated January 25th, 2012

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