The U.S. Department of Labor (DOL) recently resolved a suit filed against California based Brea Car Wash & Detail Center for $4.2 million. The suit claimed the car wash forced its employees to clock out during slow periods but wait, on-site, unpaid until business picked up. This act violated the Fair Labor and Standard Act's (FLSA) minimum and overtime wage provisions and payroll keeping requirements. The car wash maintained through the pendency of the litigation that it did not violate FLSA standards and fought the government in discovery. In the end, Brea Car Wash & Detail Center entered into a consent judgment wherein they will pay $1.9 million in back pay, $1.9 million in damages and $400,000 in civil penalties.
The FLSA, which was signed into law by President Franklin Roosevelt, recently celebrated it's 80thAnniversary. The FLSA was enacted in order to set minimum wage and overtime standards as well as help prevent child labor. The current federal minimum wage is $7.25 per hour; however, many states have their own minimum wage laws. The FLSA established that employees must be paid one and a half times the regular rate for any time worked over 40 hours. Every employer covered by the FLSA is required to keep certain records for each of its employees such as the employee's full name, identifying symbol or number, address, time and day of week when employee's workweek begins, total wages paid each pay period, and date of payment. An employer that violates the FLSA standards can be required to pay penalties and back pay. Continuous willful violations can be prosecuted criminally and can result in imprisonment.
Nilges Draher has successfully recovered over $23 million in unpaid overtime and minimum wages since its inception in 2014. If you believe you are owed overtime, contact our office to schedule your free consultation.