Daily Labor Report ®

California Car Washes to Pay $4.2M to Settle Wage, Overtime Suit

July 20, 2018, 5:33 PM

A company operating 12 car washes in Southern California and its owner will pay $4.2 million to resolve claims by the U.S. government that they repeatedly cheated workers out of regular and overtime pay.

More than 800 workers will recoup lost wages and overtime pay as a result of the deal, the Labor Department said July 18 in announcing the agreement. The settlement brings an end to a lawsuit by the agency alleging Southwest Fuel Management Inc. and Vahid Delrahim violated federal law by requiring car wash employees to clock out but remain on the job when business was slow...

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