Wage and Hour Division (WHD)

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SAN FRANCISCO -- Auto Hand Wash in Van Nuys has signed a consent judgment agreeing to pay $100,000 in back wages to 90 employees who were not paid minimum wage and overtime as required by the federal Fair Labor Standards Act (FLSA).

"Both this investigation and our new Overtime Security rules reflect our commitment to protecting the overtime rights of workers," said Secretary of Labor Elaine L. Chao. "In this case, employees were not receiving their rightful minimum wage and overtime pay, and this Administration took action to restore $100,000 in back wages to these low-wage workers."

An investigation by the department's Wage and Hour Division found that employees washing and detailing cars routinely worked between six to ten hours a day and were paid a rate of $25 per day, which did not yield the required minimum wage and overtime compensation. The investigation also found the company failed to maintain an accurate record of hours worked for employees and wages paid.

The FLSA requires that covered workers be paid at least the federal minimum wage and one-and one half times their regular rates of pay for all hours worked over 40 in a single workweek. The law also requires employers to maintain adequate and accurate records of employees' wages, hours worked and other conditions of employment.

In addition to requiring the payment of the back wages by Oct. 15, 2004, the consent judgment - entered in U.S. District Court for the Central District of California - enjoins the company from future minimum wage, overtime and record keeping violations of the FLSA.

The Wage and Hour Division (WHD) recovered more than $212 million in back wages in fiscal year (FY) 2003, a 21 percent increase over the record setting amount of FY 2002. Average days to resolve a complaint decreased in FY 2003 from 129 days to 108 days. WHD assessed employers nearly $10 million in civil money penalties in FY 2003.

For more information about the FLSA, call the Department of Labor's toll-free help line at 1-866-4USWAGE (1-866-487-9243), or contact the Los Angeles District Office at (213) 894-6375. Information is also available on the Internet at www.wagehour.dol.gov.

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