CLEAN Carwash Campaign Applauds Settlement for Carwash Workers
Labor Desk
November 20, 2008
The Carwash Worker Organizing Committee (CWOC) and the Clean Carwash Campaign applaud California Labor Commissioner Angela Bradstreet's announcement today that 60 employees of the Bruno Scherrer Corporation working at its Hollywood Riviera carwash in Redondo Beach will receive $450,000 in unpaid wages. The payout comes in settlement of a lawsuit against the carwash filed by the Labor Commissioner on the workers' behalf.
"Carwash workers are among the most exploited workers in California, and Commissioner Bradstreet's efforts are a significant step towards bringing them justice and dignity on the job," said Dave Campbell, Secretary Treasurer of United Steelworkers Local 675, and spokesperson for CWOC, a Steelworkers affiliate.
An investigation launched by the Labor Commissioner in 2006 revealed that Hollywood Riviera carwash had been paying employees minimum wage for as little as 3 to 4 hours of work, but required them to finish out the day by being paid tips only, resulting in significant violations of minimum wage laws. In September 2007 the Labor Commissioner filed a lawsuit against Hollywood Riviera in Los Angeles Superior Court on behalf of the sixty workers.
The Labor Commissioner was enforcing the Carwash Worker Law, passed in 2003, which requires all carwash operators to register with the state as a means to promote good labor practices. "We are pleased that the Labor Commissioner is giving teeth to the Carwash Worker Law, said Danny Park, Executive Director of KIWA and a member of the CLEAN Coalition, "but Hollywood Riviera carwash is the tip of the iceberg. Wage and hour and other labor law violations are rampant in the industry and we won't rest until the carwash industry is cleaned up."
Since CWOC's launch in March, carwash workers have been organizing and speaking out publicly about abuses in the industry. That month the Los Angeles Times reported the results of an investigation into the industry, which found that many owners pay less than half of minimum wage, and that two-thirds of those inspected by the state's labor department since 2003 were out of compliance with one or more labor laws. Although some violations were minor, others were fundamental: underpaying workers, hiring minors, going without workers' compensation insurance and denying meal breaks.
In one prominent case, a class-action lawsuit was filed in May in Los Angeles Superior Court covering an estimated 250 current and former employees at four carwashes owned or operated by brothers Benny and Nisan Pirian: Vermont Hand Wash, Celebrity Car Wash, Hollywood Car Wash and Five Star Car Wash. The suit alleges that the Pirians failed to pay minimum wage, failed to provide overtime pay, and denied meal and rest breaks during shifts, among other violations of state and federal law. Workers report that some employees routinely clocked 10-hour days for less than half the minimum wage, while others received no pay whatsoever and worked solely for tips.
"Carwash workers are among the most exploited workers in California, and Commissioner Bradstreet's efforts are a significant step towards bringing them justice and dignity on the job," said Dave Campbell, Secretary Treasurer of United Steelworkers Local 675, and spokesperson for CWOC, a Steelworkers affiliate.
An investigation launched by the Labor Commissioner in 2006 revealed that Hollywood Riviera carwash had been paying employees minimum wage for as little as 3 to 4 hours of work, but required them to finish out the day by being paid tips only, resulting in significant violations of minimum wage laws. In September 2007 the Labor Commissioner filed a lawsuit against Hollywood Riviera in Los Angeles Superior Court on behalf of the sixty workers.
The Labor Commissioner was enforcing the Carwash Worker Law, passed in 2003, which requires all carwash operators to register with the state as a means to promote good labor practices. "We are pleased that the Labor Commissioner is giving teeth to the Carwash Worker Law, said Danny Park, Executive Director of KIWA and a member of the CLEAN Coalition, "but Hollywood Riviera carwash is the tip of the iceberg. Wage and hour and other labor law violations are rampant in the industry and we won't rest until the carwash industry is cleaned up."
Since CWOC's launch in March, carwash workers have been organizing and speaking out publicly about abuses in the industry. That month the Los Angeles Times reported the results of an investigation into the industry, which found that many owners pay less than half of minimum wage, and that two-thirds of those inspected by the state's labor department since 2003 were out of compliance with one or more labor laws. Although some violations were minor, others were fundamental: underpaying workers, hiring minors, going without workers' compensation insurance and denying meal breaks.
In one prominent case, a class-action lawsuit was filed in May in Los Angeles Superior Court covering an estimated 250 current and former employees at four carwashes owned or operated by brothers Benny and Nisan Pirian: Vermont Hand Wash, Celebrity Car Wash, Hollywood Car Wash and Five Star Car Wash. The suit alleges that the Pirians failed to pay minimum wage, failed to provide overtime pay, and denied meal and rest breaks during shifts, among other violations of state and federal law. Workers report that some employees routinely clocked 10-hour days for less than half the minimum wage, while others received no pay whatsoever and worked solely for tips.
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