Wage and Hour Division (WHD)

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NEW YORK, NY -- Following an investigation by the U.S. Department of Labor, a chain of three commonly owned car washes in Brooklyn and Queens, New York, have paid 56 employees a total of $80,868.76 in minimum wage and overtime back wages. At issue were alleged violations of the federal Fair Labor Standards Act (FLSA).

“The recovery of rightful, hard-earned wages for these low-wage workers should remind all employers in the New York City area of their legal obligation to pay their employees properly for all hours worked,” said Philip Jacobson, New York City District Director for the Labor Department’s Wage and Hour Division.

Included in the investigation by the Wage and Hour Division were Savvy Car Wash and Hand Car Wash, located in Fresh Meadows, Queens, NY, and Savvy Hand Car Wash, located in Brooklyn, NY. The investigation disclosed that employees at all three car washes were not being paid overtime when they worked over 40 hours a week. In addition, 12 employees of Savvy Hand Car Wash were found to have been compensated at a rate less than the required federal minimum wage of $5.15 per hour.

The FLSA requires that employees be paid at least the applicable minimum wage, time and one-half their regular rate of pay for hours worked over 40 per week, and that accurate records of employees’ wages, hours and other conditions of employment be maintained.

Once informed of the apparent minimum wage and overtime violations, which generally covered the period between Sept. 13, 2002 and Sept. 13, 2004, management officials of the commonly owned car washes agreed to pay employees the back wages they were due and to come into full compliance with the FLSA in the future.

As a result, Savvy Car Wash paid 27 employees $29,192.35; Hand Car Wash paid 16 employees $24,113.04; and Savvy Hand Car Wash paid 13 employees $12,441.12 in overtime back wages. The 12 employees of Savvy Hand Car Wash due minimum wage back wages received $15,122.25 for those underpayments. In total 56 employees received $65,746.51 in overtime back wages and $15,122.25 in minimum wage back wages. A grand total of $80,868.76 was paid to 56 low wage workers.

The investigation was conducted by the New York City District Office/Brooklyn Area Office of the Labor Department’s Wage and Hour Division. Information on the requirements of the FLSA may be obtained by calling the department’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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