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Atlantic
Auto Care Center Inc. of Brooklyn; 109th & First Avenue Corp. of
Manhattan; 3808 Boston Road Car Wash Inc., 2434 CW Corp. and Boulevard
Car Wash of N.Y. Inc., all of the Bronx; Michael's Car Wash Inc. and
Howard Beach Car Wash Corp., both of Queens; 613 Car Wash Corp. of New
Rochelle; Lage Management Corp., the parent corporation located in
Pelham Manor, N.Y.; and corporate president John Lage have agreed to
pay 1,187 current and former employees a total of $3.4 million in back
wages and liquidated damages to resolve their part of a lawsuit filed
by the U.S. Department of Labor alleging violations of the federal Fair
Labor Standards Act (FLSA).
The agreement, in the form of a
final partial consent judgment, brings to a conclusion the suit filed
by the secretary of labor in the U.S. District Court for the Southern
District of New York, which named as defendants a number of related car
wash and auto lube businesses and the individuals who operated them,
including the above-named. Three partial consent judgments filed
earlier in this case resulted in the recovery of $1,348,489 in back
wages, liquidated damages and post-judgment interest for more than 200
employees of the defendants' various other corporations. The suit has
resulted in a total recovery of more than $4.7 million in back wages,
liquidated damages and post-judgment interest to more than 1,300
employees. It followed an investigation by the Labor Department's Wage
and Hour Division that disclosed violations of the FLSA's minimum wage,
overtime and recordkeeping requirements.
"This case should be a
loud wake up call to other employers of vulnerable workers that the
U.S. Department of Labor will not hesitate to pursue them in federal
court in order to compel them to pay employees properly for all hours
worked," said Secretary of Labor Hilda L. Solis. "Employers must be
aware of their obligation to comply with all federal labor laws, and we
are here to make sure that they do."
The FLSA requires that
employees be paid at least the federal minimum wage and time and
one-half their regular rates of pay for hours worked over 40 per week.
Employers also are required to maintain accurate records of employees'
names, addresses, wages, hours and other conditions of employment.
The
consent judgment prohibits the defendants from future violations of the
FLSA's minimum wage, overtime and recordkeeping requirements, and
orders them to pay employees back wages, liquidated damages and
post-judgment interest. If the defendants fail to make the payments,
the court will appoint a receiver with power to seize and liquidate
their assets to satisfy the order. Finally, the defendants must post in
their facilities where all employees may view them official Department
of Labor posters informing employees of their rights under the FLSA.
The
Wage and Hour Division's district office in New York City is attempting
to locate several workers who are no longer employed by the
establishments to pay them the back wages to which they are legally
entitled. Individuals who believe they are due back wages as part of
this settlement should contact the New York District Office of the
division at 212-264-8185. Over the past two years, that office has
recovered more than $5.4 million for workers in the New York City car
wash industry. For more information about the requirements of the FLSA,
contact the Wage and Hour Division office in Manhattan at 212-264-8185
or call the Department of Labor's toll-free helpline at 866-US-WAGE
(487-9243). Information is also available on the Internet at
http://www.wagehour.dol.gov.
Solis v. LMC et al; Civil Action Number: 1:05-CV-6786
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