Wage and Hour Division (WHD)
U.S. Department of Labor
SAN JOSE, Calif. -- The U.S. Department of Labor’s Wage and Hour Division has recovered $268,501 in unpaid back wages for 270 employees of Lozano Inc., doing business as Lozano Car Wash, as a result of failure to pay its workers for all hours worked under the provisions of the federal Fair Labor Standards Act (FLSA).
The employer operated car wash services and property rental establishments in Mountain View and Sunnyvale, Calif.
An investigation revealed that workers were required to arrive at the establishments at their scheduled times but had to wait to be placed on the clock based on car wash service volume. Workers waited between 15 minutes to over an hour each workday.
While the employer paid the state statutory overtime compensation of time and one-half regular rates of pay for hours worked over eight each day, employees were not paid for the time engaged in waiting. Following the investigation, the employer paid required back wages in full and agreed to future compliance with federal law.
“I’m pleased that the Wage and Hour Division’s enforcement efforts assisted these vulnerable workers,” said Susana Rincon, district director for the division in San Francisco.
The investigation covered the period from Dec. 10, 2006, to Dec. 6, 2008. Anyone working for this employer during that time should contact the Wage and Hour Division office in San Jose at 408-291-7730, ext.12 to determine if back wages are due.
The FLSA requires covered, nonexempt employees to be paid at least the federal minimum wage of $6.55 per hour for all hours worked, and time and one-half their regular rates of pay for hours worked beyond 40 in a week. Employers must also maintain accurate time and payroll records. A workweek includes all time during which an employee is necessarily required to be on the employer’s premises, on duty or at a prescribed work place. “Workday,” in general, means the period between the time on any particular day when such employee commences his/her “principal activity” and the time on that day at which he/she ceases such principal activity or activities. The workday may therefore be longer than the employee’s scheduled shift, hours, tour of duty or production line time.
For more information about the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.
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