Tuesday, August 24, 2010

California car wash owners face jail time, must pay $1.25 million in restitution for wage theft

Two owners of four Los Angeles car wash businesses were each sentenced to one year in jail and ordered to pay restitution of an estimated $1.25 million dollars in unpaid wages to car wash workers in a landmark plea agreement to resolve multiple criminal counts of repeatedly and willfully stealing wages and violating labor laws, the Los Angeles City Attorney’s office announced. Car wash owners Benny and Nissan Pirian each entered a plea of no contest to six criminal counts, including conspiracy, grand theft, and several labor code violations; they were sentenced to 365 days in jail and four years of probation. The Pirians and the corporations through which they operated the car washes were also ordered to pay full restitution to the victims pursuant to a future hearing.

 

The criminal complaint alleged that for years, workers at the Pirians’ car washes were paid a flat rate of $35 to $40 per day, far below the federal and state minimum wages, with some working for tips alone. The complaint further alleged that none of the workers were compensated for their overtime and during the day, the workers — who often labored in extreme heat — were either discouraged from taking rest breaks or denied the right altogether. The complaint also alleged that the defendants failed to provide clean drinking water, safety gear, or uniforms, forcing employees to pay money out of their substandard wages for bottled water and company t-shirts….

 

http://www.employmentlawdaily.com/index.php/news/california-car-wash-owners-face-jail-time-must-pay-1-25-million-in-restitution-for-wage-theft/

 

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