Politics & Government
Local Car Washes Settle Labor Suit
Crown Valley Auto Spa is among eight car washes that will pay $1 million in restitution to settle a lawsuit brought by the California Attorney General.
Laguna Niguel-based , formerly Crown Valley Car Wash, is among eight California car washes that will pay more than $1 million in restitution to workers who claimed they were underpaid and denied rest and meal breaks.
A settlement was announced Tuesday by California Attorney General Kamala D. Harris, who called the businesses “unscrupulous” in “taking advantage” of their employees.
The lawsuit was filed against eight car washes and Dipu Haque Sikder, who spearheaded the business. The Attorney General's office sought $6.6 million in the suit filed in the fall of 2010, accusing the car washes of exploiting workers and engaging in illegal business practices.
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The family was named in filed by the Attorney General's office in the fall of 2010. It accused the car washes of exploiting workers and engaging in illegal business practices.
Based on interviews with more than 80 workers, the suit alleged that the businesses failed to register as car washing and "polishing" employers as required under California law; failed to pay employees minimum wages for all the hours they worked and for overtime pay; made payments with checks drawn on insufficient funds; and did not provide employees with 10 minute breaks for meals and for every four hours they worked.
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In the settlement announced Tuesday, the businesses denied the allegations, saying they never undertook any actions that were “wrongful, unlawful or tortious.”
The agreement “is the result of compromise and extensive negotiations between the parties,” the settlement states.
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.
The settlement requires that the first installment be paid by Jan. 15 and the second installment by July 15.
Crown Valley Car Wash became Crown Valley Auto Spa in January 2011.
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