labor lawAdivision of labor law center

California employers should be aware of a special enforcement action targeting carwashes and other illegal operations in “the underground economy.” During a three-day August enforcement sweep, investigators visited 97 carwashes in Northern California. Fifty-four of them were issued citations resulting in fines totaling more than $521,000.

 

Thirty of the car wash businesses were shut down until they comply with labor laws, including:

• Require work permits for minors
• Provide employees with an itemize wage deduction statement
• Pay overtime wages
• Pay the annual registration with the commissioner’s office
• Provide workers’ compensation coverage 

“Our efforts are directed at illegally operating carwash businesses as part of the underground economy,” said California Labor Commissioner Angela Bradstreet. “These illegal operations have a negative impact on our state’s economy, do not provide the protection workers are legally afforded, and have an unfair advantage over competitors who do follow the law.”

 

Fifteen teams of investigators were involved in the enforcement efforts.

 

A similar action in July netted 47 violations totaling $356,200 in fines to car washes in Los Angeles and Orange counties. In that sweep, investigators visited 72 businesses, fining 28 of them.

 

This action suggests that the Department of Labor Standards Enforcement may target other small businesses in the near future, in an effort to uncover unlicensed, illegal businesses in other industries.

 

A complete list of the violations and businesses cited is available by emailing a request to  the Department of Industrial Relations at: Communications@dir.ca.gov.

 

“We will continue to strengthen our efforts in addressing these types of violations that are typically associated with the underground economy,” added Bradstreet.

 

The Division of Labor Standards Enforcement adjudicates wage claims, investigates discrimination and public works complaints, and enforces state labor law and Industrial Welfare Commission wage orders. To learn more about the functions of the California Labor Commissioner, visit the web site at www.dir.ca.gov/dlse.

 

Employers who have questions regarding license compliance or worker coverage can call the California Workers’ Information Hotline at 1-866-924-9757

 

 

 

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