Wage and Hour Division (WHD)

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NEW YORK -- Prowash Express Inc., a car wash and lube center operating in New Rochelle, N.Y., and owner Matthew Phillips, with an office in Mount Vernon, N.Y., have agreed to pay 20 employees a total of $80,000 in back wages to settle a lawsuit filed by the U.S. Department of Labor alleging violations of the federal Fair Labor Standards Act (FLSA).

The suit was filed following an investigation by the department’s Wage and Hour Division that disclosed violations of the FLSA’s minimum wage, overtime and recordkeeping provisions.

The FLSA requires that covered employees be paid at least the federal minimum wage as well as one and one-half times their regular rates of pay for hours worked beyond 40 per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.

A consent judgment, signed by U.S. District Judge Stephen C. Robinson, prohibits the defendants from future violations of the minimum wage, overtime, recordkeeping and anti-retaliation provisions of the FLSA and orders them to pay employees the $80,000 in back wages according to an installment plan. The defendants agreed to entry of the judgment while neither admitting nor denying the allegations in the department’s lawsuit.

If the defendants fail to make any of the back wage payments, the court will appoint a receiver with power to seize and liquidate their assets to satisfy the back wage payment order. Finally, the defendants must advise employees, in Spanish and English, of their rights under the FLSA and to engage in protected activities without fear of retaliation. Official posters must also be posted where all employees may view them.

For more information about the FLSA, call the Department of Labor’s toll-free helpline at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov and via an interactive “e-laws advisor” at www.dol.gov/elaws/flsa.htm.

Effective July 24, 2007, the federal minimum wage for covered nonexempt employees was raised to $5.85 per hour. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009.

Chao v. Prowash Express Inc., et al; Civil Action Number: 04-CV-10099-SCR

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