Wage and Hour Division (WHD)

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NEW YORK -- The U.S. Department of Labor (DOL) has sued two Queens, N.Y. car washes and the president of both corporations for alleged violations of minimum wage, overtime and recordkeeping provisions of the federal Fair Labor Standards Act (FLSA).

Named in the department’s lawsuit are Northern Boulevard Car Wash Inc., Flushing, Queens; Little Neck Car Wash Corp., Little Neck, Queens; and Joseph Dayan of Great Neck, president of both corporations.

An investigation by the department’s Wage and Hour Division found that 52 employees working at the two Queens locations were required to work more than 40 hours during many workweeks and were not paid the minimum wage or overtime when they worked more than 40 hours a week. According to Philip Jacobson, New York City district director for the Wage and Hour Division, the investigation also found that the company did not keep proper records of the number of hours employees worked, their regular rates of pay and other required information.

“Even worse,” said Jacobson, “our investigation found that Northern Boulevard Car Wash had demanded that employees kick back to the employer back pay that the company had paid to the employees following a prior investigation. Such an action is a serious violation of the law and totally unacceptable.”

The FLSA requires that covered employees be paid at least the applicable minimum wage as well as one and one-half times their regular rate of pay for hours worked more than 40 per week. The law also requires that accurate records of employees’ wages, hours and other conditions of employment be maintained. Further, the wage requirements of the FLSA provides that all wages be paid free and clear, and not kicked-back directly or indirectly to the employer or another person for the employer’s benefit.

The Labor Department lawsuit, filed with the U.S. District Court for the Eastern District of New York, charges the defendants with willful violations of the FLSA since April 7, 2002. The suit asks the court to permanently enjoin the defendants from future violations of the law and to order them to pay employees minimum wage and overtime back wages due, along with an equal amount in liquidated damages or prejudgment interest.

The Manhattan District Office of the Wage and Hour Division conducted this investigation and the department’s lawsuit was filed by the Regional Solicitor’s Office in New York City. For more information about the provisions of the FLSA, contact the DOL’s toll-free help line at 1-866-4USWAGE (1-866-487-9243) or the New York City Wage and Hour office at 212-264-8185, or go to www.wagehour.dol.gov.

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