Actually, it was larger than a spot. Interior Magic of California, a car detailing service in Riverside County, will have to pay $292,000 in back wages and liquidated damages to 205 current and former employees, plus $34,408 in civil penalties to polish its image following a U.S. Department of Labor Wage and Hour Division (WHD) investigation.
WHD investigators concluded the company willfully violated the Fair Labor Standards Act () by failing to pay minimum and overtime wages and breaking wage-and-hour record-keeping requirements.
Interior Magic’s slight of hand? It made workers pay for damage to vehicles they were cleaning, which often brought their hourly pay below the minimum wage. The workers also were paid straight time for all their work, even when they worked more than 40 hours in a week.
The company also misclassified some workers as FLSA-exempt when they were not. As a result, those employees did not receive proper overtime pay.