The owner of a dozen Southern California car washes will pay $4.2 million to settle a federal lawsuit claiming that he cheated hundreds of employees out of wages.
The U.S. Department of Labor announced Wednesday that about 800 workers will receive back pay under a consent agreement reached with Vahid Delrahim. The agreement was filed in Los Angeles federal court.
The labor department lawsuit alleged that Delrahim required employees to work off the clock at the start of each shift, to clock out but remain at the car washes when business was slow and to work unpaid overtime.
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Officials say some employees worked several hours a day without proper pay.
The agreement calls for a court-appointed monitor to oversee the businesses for a year.