Carwash Workers to Receive $450,000 in Unpaid Wages

Sixty workers at a Redondo Beach, Calif., carwash will receive $450,000 in unpaid wages after a settlement was reached in a lawsuit filed more than a year ago by the California Labor Commissioner’s Office, officials announced.

The commissioner’s office began investigating Bruno Scherrer Corp., which does business as Hollywood Riviera, in October 2006 and eventually charged that the carwash had shorted employee wages and intentionally failed to record total hours worked by employees.

Hollywood Riviera allegedly paid employees minimum wage for as little as three to four hours, then required them to finish their work day on tips alone, labor officials said. The commissioner’s office filed suit against Hollywood Riviera in September 2007.

“Clearly this case reveals a deplorable situation where employees were being taken advantage of by not being paid their proper wage,” said Labor Commissioner Angela Bradstreet. “This case is an excellent example of why we register carwash companies in California.”

California's Carwash Worker Law established a registration system for all carwash and polishing businesses. All California carwash owners were required to register with the state by July 20, 2006, according to the commissioner’s office.