Local Car Washes Settle Labor Suit

Santa Monica-based Bonus Car Wash is among eight California car washes that will pay more than $1 million in restitution to workers who claimed they were underpaid and denied rest and meal breaks.

A settlement between the employers and workers was announced Tuesday by California Attorney General Kamala D. Harris, who called the employers “unscrupulous” in “taking advantage” of their employees.

In the fall of 2010, her office filed a lawsuit against the eight car washes and Dipu Haque Sikder, who spearheaded the business. The suit sought $6.6 million and accused the car washes of exploiting workers and engaging in illegal business practices.

Based on interviews with more than 80 workers, the suit alleged that the businesses failed to register as car washing and "polishing" employers as required under California law; failed to pay employees minimum wages for all the hours they worked and for overtime pay; made payments with checks drawn on insufficient funds; and did not provide employees with 10 minute breaks for meals and for every four hours they worked. 

Bonus Car wash in December 2010 by workers who were locked out of Marina Car Wash amid the labor dispute.

In October of last year, as reported by and the Los Angeles Times, Bonus Car Wash workers became the first in Southern California to unionize after what workers there called a “two year struggle.”

In the settlement announced Tuesday, the businesses denied the allegations, saying they never undertook any actions that were “wrongful, unlawful or tortious.”

The agreement “is the result of compromise and extensive negotiations between the parties,” the settlement states.

Along with more than $1 million in restitution of unpaid wages and civil penalties, the car washes are required to pay $50,000 in employment taxes.

The settlement requires that the first installment be paid by Jan. 15 and the second installment by July 15.