Labor Commissioner Moves to Shut Down Carwashes Operating Illegally
Labor Desk
June 03, 2009
AGENCY ENFORCES "CARWASH WORKER LAW" AS BILL TO RENEW THE LAW GAINS GROUND.
Los Angeles —The California Labor Commissioner has filed a lawsuit to close nine carwashes operating illegally, including six washes in Los Angeles. The lawsuit coincided with a vote by the California Assembly to reauthorize the law that requires carwashes to register with the state.
The CLEAN Carwash Campaign had advocated that the Labor Commissioner take action against two of the Los Angeles carwashes targeted by the Labor Commissioner in this latest enforcement action, Auto Spa Express and Melrose Car Wash. These carwashes, both owned by Jonathan Kim, are an example of the abusive practices in the industry that prompted passage of the Carwash Worker Law. Collectively, the carwashes have been cited for failure to pay minimum wage and overtime, child labor violations, and hazardous workplace conditions. At Auto Spa Express, the carwash management also fired workers who supported efforts to organize a union and "blew the whistle" on health and safety hazards and wage violations at their workplace.
"The CLEAN Campaign has been working over the past year to put a stop to the exploitative business practices of Auto Spa Express and Melrose Car Wash. We brought these practices to the Labor Commissioner´s attention and we are gratified that her office has taken these decisive measures to enforce the law in an industry that too often operates in its defiance," said Henry Huerta, Director of the CLEAN Campaign.
Last year, workers and their supporters in the CLEAN Carwash Campaign filed a complaint that Auto Spa Express was violating the City´s Living Wage Ordinance. The City of Los Angeles had a contract with the carwash to clean City vehicles dating back to August 2006. Workers filed wage claims with the City alleging they were being paid rates of $4 to $5 an hour – far less than minimum wage, let alone L.A.´s Living Wage. The City subsequently canceled its contract with the carwash.
"We commend this action by the Labor Commissioner´s office and urge them to seek repayment of any wages owed to workers at these carwashes," said Huerta. "Workers at these carwashes have reported being cheated out of minimum wage and overtime for years, and they want to see justice done."
Labor Commissioner records show that Auto Spa Express was fined $83,500 for cash pay violations, $21,200 for minimum wage violations, $16,750 for overtime violations, $500 for child labor violations, and $10,000 for non-registration in 2007. Auto Spa Express was also cited by Cal/OSHA in February for health and safety violations discovered after workers with the CLEAN Campaign filed a health and safety complaint. The Carwash has so far failed to pay Cal/OSHA the $18,890 it owes in fines.
Melrose Car Wash was fined $17,000 in April of this year for failure to carry workers´ compensation coverage and $10,000 for failure to register. The carwash had previously been fined $16,000 in 2008 for not providing workers´ compensation insurance.
In filing the lawsuit, the Labor Commissioner was acting to enforce the "Carwash Worker Law," which requires all carwashes to register with the state due to widespread labor violations in the industry. The law will expire at the end of the year if not reauthorized by the legislature. Assembly Bill 236, which would renew the law, passed the state Assembly floor on Tuesday and will next be heard in the Senate Industrial Relations Committee.
CLEAN stands for Community-Labor-Environmental Action Network, a coalition of labor, immigrant rights, faith, environmental and community-based organizations. For more information about the CLEAN Carwash Campaign visit www.CleanCarwashLA.org.
Los Angeles —The California Labor Commissioner has filed a lawsuit to close nine carwashes operating illegally, including six washes in Los Angeles. The lawsuit coincided with a vote by the California Assembly to reauthorize the law that requires carwashes to register with the state.
The CLEAN Carwash Campaign had advocated that the Labor Commissioner take action against two of the Los Angeles carwashes targeted by the Labor Commissioner in this latest enforcement action, Auto Spa Express and Melrose Car Wash. These carwashes, both owned by Jonathan Kim, are an example of the abusive practices in the industry that prompted passage of the Carwash Worker Law. Collectively, the carwashes have been cited for failure to pay minimum wage and overtime, child labor violations, and hazardous workplace conditions. At Auto Spa Express, the carwash management also fired workers who supported efforts to organize a union and "blew the whistle" on health and safety hazards and wage violations at their workplace.
"The CLEAN Campaign has been working over the past year to put a stop to the exploitative business practices of Auto Spa Express and Melrose Car Wash. We brought these practices to the Labor Commissioner´s attention and we are gratified that her office has taken these decisive measures to enforce the law in an industry that too often operates in its defiance," said Henry Huerta, Director of the CLEAN Campaign.
Last year, workers and their supporters in the CLEAN Carwash Campaign filed a complaint that Auto Spa Express was violating the City´s Living Wage Ordinance. The City of Los Angeles had a contract with the carwash to clean City vehicles dating back to August 2006. Workers filed wage claims with the City alleging they were being paid rates of $4 to $5 an hour – far less than minimum wage, let alone L.A.´s Living Wage. The City subsequently canceled its contract with the carwash.
"We commend this action by the Labor Commissioner´s office and urge them to seek repayment of any wages owed to workers at these carwashes," said Huerta. "Workers at these carwashes have reported being cheated out of minimum wage and overtime for years, and they want to see justice done."
Labor Commissioner records show that Auto Spa Express was fined $83,500 for cash pay violations, $21,200 for minimum wage violations, $16,750 for overtime violations, $500 for child labor violations, and $10,000 for non-registration in 2007. Auto Spa Express was also cited by Cal/OSHA in February for health and safety violations discovered after workers with the CLEAN Campaign filed a health and safety complaint. The Carwash has so far failed to pay Cal/OSHA the $18,890 it owes in fines.
Melrose Car Wash was fined $17,000 in April of this year for failure to carry workers´ compensation coverage and $10,000 for failure to register. The carwash had previously been fined $16,000 in 2008 for not providing workers´ compensation insurance.
In filing the lawsuit, the Labor Commissioner was acting to enforce the "Carwash Worker Law," which requires all carwashes to register with the state due to widespread labor violations in the industry. The law will expire at the end of the year if not reauthorized by the legislature. Assembly Bill 236, which would renew the law, passed the state Assembly floor on Tuesday and will next be heard in the Senate Industrial Relations Committee.
CLEAN stands for Community-Labor-Environmental Action Network, a coalition of labor, immigrant rights, faith, environmental and community-based organizations. For more information about the CLEAN Carwash Campaign visit www.CleanCarwashLA.org.