More than 800 employees at 12 Southern California car washes will receive a share of a $4.2 million recovery obtained by the U.S. Department of Labor to conclude a lawsuit filed by the Department. In a consent judgment entered by the U.S. District Court for the Central District of California in Los Angeles, car wash operator Vahid David Delrahim and his related businesses must pay $3.8 million in back wages and liquidated damages for violations of the Fair Labor Standards Act (FLSA), along with $400,000 in civil money penalties.

The lawsuit filed on behalf of the Secretary of Labor and the investigation by the Department found that Delrahim required employees at his company's car washes to work off the clock at the beginning of each shift and to clock out, but to remain at the car washes, when business was slow. The violations resulted in unpaid wages amounting to - on average - several hours of pay each day. As a result of the judgment, some employees will receive more than $10,000 in back wages.