Attorney General Eric Schneiderman: 2 NYC car wash chains must pay $3.9 million because of labor law violations

Attorney General Eric Schneiderman says two car wash chains in New York City owe workers $3.9 million in restitution for underpaying them. (3/6/14)

THE BRONX - Attorney General Eric Schneiderman says two car wash chains in New York City will have to pay workers $3.9 million in restitution for underpaid workers.

Six of those car washes are in the Bronx. They are Boulevard Car Wash of N.Y., Webster Car Wash, Hand Wash Inc., 24-07 C.W. Corp, Tremont Car Wash Inc., and Bronx River C.W. Corp.

Schneiderman says the two major car wash chains are owned are operated by John Lage, Michael Lage and Fernando Magal-Haes. They will have to pay $2.2 million to an estimated 1,000 car wash workers for the six years they underpaid them.

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They will also have to give $513,000 to the New York State Department of Labor's Unemployment Insurance Division and nearly $1.2 million to the New York State Workers Compensation Board.

They are also required to pay for independent monitoring of their labor practices for up to three years.

"They both engaged in rampant labor law violations and cheated hundreds of workers," says Schneiderman. "My labor bureau, through an investigation, found that some of the car washes didn't pay overtime. They illegally deducted pay for breaks workers didn't get."

He says the agreement will ensure that car washes clean up their act and comply with the law.

According to the agreement, the owners must provide additional protection for workers in case of a sale or closure of a car wash location.

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