A California carwash has agreed to pay $1.2 million to resolve “widespread wage theft” and other labor law violations, according to the California Labor Commissioner’s Office (LCO).
The payout will reimburse 23 affected employees for unpaid wages.
Newport Auto Spa, Inc., d/b/a The Car Spa, is a luxury carwash in Newport Beach, California.
An investigation by the LCO’s Bureau of Field Enforcement found Newport Auto Spa denied full payment of wages, including overtime, to employees working as ticket writers, washers, dryers and detailers. The employees were also required to remain on-site without pay during slow business hours and routinely prevented from taking uninterrupted meal breaks and rest breaks in violation of California law.
Some affected employees had worked at Newport Auto Spa for up to 20 years and were “consistently underpaid and expected to work off the clock,” the LCO said in a press release.
Some long-tenured hourly workers avoid reporting wage theft out of loyalty. This allows violations to continue for years — and inflates back pay exposure (with possible interest and penalties) until state or federal agencies investigate.
“Employers who deny workers their full pay exploit their workforce and hurt honest businesses that follow the law,” said California Labor Commissioner Lilia García-Brower. “This settlement ensures these workers finally receive the wages they earned and sends a clear message that wage theft will not...
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