By Howard Koplowitz
The parent company of two Queens car washes agreed to pay its employees a total of $3.4 million in back wages to settle a lawsuit filed by the U.S. Labor Department, the agency said Tuesday.
The Howard Beach Car Wash Corp. and Long Island City-based Michael’s Car Wash, which are owned by Lage Management Corp., were sued by the Labor Department for allegedly violating the federal Fair Labor Standards Act, which requires employees to be paid at least the federal minimum wage and time and a half for overtime.
Labor Department spokesman John Chavez said it was unclear how many immigrant workers were employed by the car washes, but such workers were most likely affected.
“I have no doubt that certainly some of the workers were immigrant workers,” he said. “That goes without saying.”
The federal legislation also requires employers to keep accurate records of employees’ names, addresses, wages, hours and other conditions of employment.
Lage Management owns seven other car washes in the city and Westchester County.
As part of the consent judgment, the Queens companies have to pay current and former employees back wages and prohibits them from violating the legislation again, the agency said.
The two borough businesses and seven others across the state agreed to pay $3.4 million in back wages to 1,187 employees.
All of the companies involved in the suit were either car wash and auto lube-related businesses, the agency said.
“This case should serve as a 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,” U.S. Labor Secretary Hilda L. Solis said in a statement. “Employers must be aware of their obligation to comply with all federal labor laws, and we are here to make sure that they do.”
Former workers at the businesses who believe they are due back wages as part of the settlement were asked to contact the Labor Department’s New York District Office at 212-264-8185.
Reach reporter Howard Koplowitz by e-mail at hkoplowitz@cnglocal.com or by phone at 718-229-0300, Ext. 173.
