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Owner of eight CA washes agrees to huge settlement

January 12, 2012
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SACRAMENTO, CA — Some carwash employees here, and in other cities, will share in a $1 million state settlement paid for labor-law violations, The Sacramento Bee reported.

The Jan. 11 story stated that California’s attorney general found workers at eight carwashes were denied minimum wage, overtime pay, meal breaks and other benefits.

The bulk of the settlement, $800,000, will be split among the workers and ex-workers, according to the story. The carwashes also must pay $50,000 in back payroll taxes and $100,000 in civil penalties.

Over a year ago, the attorney general’s office sued the eight carwashes and their principal owner, Dipu Haque Sikder. The case was settled in Los Angeles Superior Court with Sikder admitting no liability or wrongdoing, the story noted.

“There is a strong public interest in distributing unpaid wages restitution to alleged employee victims … as promptly as possible,” state lawyers said in court papers. “The victims are generally unskilled, low-wage, non-English speakers who are at high risk of being unemployed and without resources and especially vulnerable to financial hardship.”