Car Wash Employees Get $450,000

Many employers believe that only the 'big companies' can get into trouble with Wage & Hour issues. This belief is usually supported by the media - it's always good copy when a large employer gets hit with a multi-million dollar fine.

But that's not true! All businesses - regardless of size - are liable for violations of wage & hour issues. Like the car wash in Redondo Beach, California.

Turns out the car wash was paying about 60 employees for the first four hours of work, and then letting them work for 'tips only' for the rest of the day.

Big problem.

The California Labor Board conducted an investigation starting in 2006, which resulted in a lawsuit in 2007.

The award, announced in November 2008? $450,000 for those 60 employees.

Can your business survive a fine like that? If not, make sure you're intimately familiar with all wage and hour issues. Get a consultant or employment attorney to audit your practices to ensure you're in compliance.