LOS ANGELES – City Attorney Mike Feuer today announced that his office has successfully secured more than $1M in restitution for workers at Silver Lake Car Wash and Catalina Car Wash who were allegedly deprived of minimum wages, overtime and rest breaks on a routine basis, and who were allegedly subjected to intimidation and witness tampering throughout the course of the litigation. The settlement is the result of a collaboration among the City Attorney’s Office, the Criminal Investigation Unit of the California Labor Commissioner’s Office, the Bet Tzedek Employment Rights Project, and the Community Labor Environmental Action Network (CLEAN), a non-profit community organization that advocates for the rights of car wash workers and other low-wage workers in the Los Angeles area.
"Hard-working men and women have the right to decent working conditions, at least a minimum wage and overtime," said Feuer. "This settlement sends a strong message to employers across our city that we take allegations of wage theft and mistreatment of workers seriously. My office will fight to ensure all workers receive the respect they deserve and are paid what the law demands. In addition, the settlement confirms that my office has zero tolerance for allegations of witness intimidation, and that such efforts will be met with serious consequences, as represented by the sizable civil penalties the Defendants will pay in this case."
Under the terms of the Stipulated Final Judgement, Silver Lake Car Wash, Inc., Catalina Car Wash, Inc., and the primary supervisor at the two car washes, Yoosef Aminpour, have agreed to pay $1,084,972 in restitution to qualified individuals employed at the car washes from January 18, 2014 to June 30, 2018. Qualified employees will be contacted and instructed on how to submit a claim. Those who submit a claim will receive wage reimbursement via a qualified third party administrator paid by the defendants.
The defendants have also agreed to pay $519,027 in civil penalties, as well as $35,996 in litigation costs to the City Attorney’s Office.
Defendants will also be placed under a four-year injunction requiring complete compliance with all applicable wage-and-hour laws and regulations including mandatory meal and rest breaks for all employees; providing all necessary equipment to perform job responsibilities including boots and gloves; adopting accurate time keeping procedures for employees; and providing a regular bi-weekly pay schedule with itemized statements on each paycheck.
The operative complaint alleged that Silver Lake Car Wash, located at 3595 Beverly Boulevard, and Catalina Car Wash, located at 4000 Beverly Boulevard, paid its workers a daily rate as low as $45 dollars per day for 10 hours or more of work—effectively a $4.50 per hour rate, well below the applicable minimum wage, and with no overtime. On certain occasions where the car wash facilities shut down early for lack of customers, employees were allegedly not paid anything.
The lawsuit further alleged that Silver Lake Car Wash and Catalina Car Wash falsified payroll records in order to underreport employee work hours and short their pay, and that the car washes attempted to tamper with witnesses and secure false testimony in the litigation, including by threatening and/or bribing employees. The car washes would also allegedly fail to give rest or meal breaks to their employees. Additionally, the car washes allegedly did not provide proper safety equipment, forcing some workers to buy their own gloves and boots.
Feuer urged other workers who may be the victims of wage theft to come forward and file a report directly with his office by e-mail at email@example.com or by phone at 213-978-1868. Feuer emphasized that wage theft victims may report to his office anonymously.
Deputy City Attorney Adam R. Teitelbaum of Feuer’s Affirmative Litigation Unit successfully handled the litigation.