NYC car washers clean up with $4.7 million in OT settlements — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

NYC car washers clean up with $4.7 million in OT settlements

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in Leaders & Managers,Management Training

The parent corporation of several New York City area car washes has agreed to settle overtime claims from 1,187 current and former employees for $3.4 million.

Coupled with a previous settlement with 200 workers for more than $1.3 million, Lage Management has paid out more than $4.7 million in back pay and liquidated damages.

Rather than pursue a massive Fair Labor Standards Act suit in court, Lage agreed to settle under terms brokered by the U.S. Department of Labor’s Wage and Hour Division. The Labor Department may appoint a receiver to administer payments to the employees and, if necessary, liquidate company assets.

Note: Clearly, Department of Labor regulators are in no mood to cut employers slack on overtime payments. They consider their enforcement role a key portion of the Obama administration’s economic stimulus program.

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