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Tuesday, April 21, 2026

The high cost of wage theft: Southern California car wash operator pays $202K in back wages, damages to 13 workers after federal investigation - US Department of Labor

Rancho Carwash shortchanged workers, attempted to mask illegal pay practices

WEST COVINA, CA – A federal investigation has recovered $202,192 in back wages and liquidated damages for 13 workers at a Southern California car wash, whose employer shortchanged them, tried to conceal their wrongdoing, and committed other violations of federal law.

Investigators with the U.S. Department of Labor’s Wage and Hour Division found that MG Petroleum Inc., operator of Rancho Carwash – a gas station, mini market and car wash – in Rancho Cucamonga, attempted to hide its illegal actions giving workers two paychecks: one for the first 40 hours worked, and a second for overtime hours paid at straight-time rates, without legally required overtime premium.

The division also determined MG Petroleum required workers to take lunch breaks as customer demand dictated. While this practice left employees unable to take uninterrupted one-hour lunch breaks, the employer still deducted an average of 4 hours per week for lunch breaks. The employer’s led to violations of the Fair Labor Standards Act.

The investigation led to the recovery of $101,096 in back wages and an equal amount of $101,096 in liquidated damages for the affected workers.

“Federal law requires that employers pay workers all their hard-earned wages, including overtime pay for hours employees work over 40 in a workweek,” said Wage and Hour Division Assistant District Director Gayane Aleksanian in West Covina, California. “Rancho Carwash...



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