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Wage and Hour Division - To promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce.

Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 05-1477-NEW / BOS 2005-211

Date: 

August 4, 2005

Contact: 

John M. Chavez

Phone: 

(617) 565-2075

U.S. Labor Department Sues Chain of New York Car Washes To Recover Wages Due 347 Employees

NEW YORK, NY -- The U.S. Department of Labor has filed a lawsuit in federal court against eight New York City-area car washes for alleged violations of federal minimum wage, overtime and record-keeping requirements of the federal Fair Labor Standards Act (FLSA).

“The Department of Labor is committed to ensuring that workers, especially low-wage workers, are paid all the wages to which they are entitled under the law,” said Corlis Sellers, Northeast regional director of the department’s Wage and Hour Division. “We will not hesitate to file court actions, such as this one, to recover back wages for workers paid improperly by their employers.”

Defendants named in the suit, filed in the U.S. District Court for the Southern District of New York, are: Atlantic Auto Care Center Inc., Brooklyn; Boston Road Lube Inc., Bronx; Boulevard Car Wash of N.Y. Inc., Bronx; Bronx River Lube Inc., Bronx; First Avenue Lube Corp., New York; Michael’s Car Wash Inc., Astoria; Midnight Express Lube Inc., Ozone Park; and 613 Car Wash Corp., New Rochelle. Also named in the suit are LMC, also known as Lage Management Corporation, and John Lage, individually and as president of all the companies.

An investigation by the department’s Wage and Hour Division revealed that approximately 347 current and former low- wage employees of the defendants, mostly car washers, were required to work over 70 hours per week without being paid at least the federal minimum wage and proper overtime compensation. The defendants also failed to maintain adequate and accurate records of their employees’ wages, hours and other conditions of employment.

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

The Labor Department’s lawsuit, filed July 28, alleges that the violations have taken place since March 16, 2002, and asks the court for a judgment prohibiting the defendants from future violations of the FLSA. The complaint also asks the court to order the payment of all back wages due, including minimum wage and overtime compensation and equal amounts of liquidated damages or pre-judgment interest.

The department’s Wage and Hour Division office in Manhattan investigated this case, and the lawsuit was filed by the department’s Regional Solicitor’s Office in New York City. For more information about the requirements of the FLSA, contact the Manhattan Wage and Hour office at 212-264-8185 or call the Department of Labor’s toll-free help line at 1-866-USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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(Chao v. Atlantic Auto Care Center, Inc., et al; Civil Action Number: 05-CV-6786)


U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.


 



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