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Hilda L. Solis, Secretary of Labor, United States Department of Labor v. Hollywood Car Wash

October 25, 2011

HILDA L. SOLIS, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR, PLAINTIFF,
v.
HOLLYWOOD CAR WASH, INC., A CALIFORNIA CORPORATION, CELEBRITY CARWASH, INC., A CALIFORNIA CORPORATION, VERMONT CAR WASH, INC., A CALIFORNIA CORPORATION, BENNY PIRIAN , INDIVIDUALLY AND AS MANAGING AGENT OF CORPORATE DEFENDANTS, AND NISAN PIRIAN, AKA PIAMAN NISAN PIRIAN, INDIVIDUALLY AND AS MANAGING AGENT OF CORPORATE DEFENDANTS, , DEFENDANTS.



JS-6

CONSENT JUDGMENT

Plaintiff Hilda L. Solis, Secretary of Labor, United States Department of Labor ("Secretary"), and Defendants HOLLYWOOD CAR WASH, INC., a California corporation, CELEBRITY CARWASH, INC., a California corporation, VERMONT CAR WASH, INC., a California corporation, BENNY PIRIAN , individually and as managing agent of corporate defendants, and NISAN PIRIAN, aka PIAMAN NISAN PIRIAN, individually and as managing agent of corporate defendants, (collectively "Defendants"), have agreed to resolve the matters in controversy in this civil action and consent to the entry of this Consent Judgment in accordance herewith:

A. The Secretary has filed a Complaint alleging that Defendants violated provisions of Sections 15(a)(2) and 15(a)(5) of the Fair Labor Standards Act of 1938, as amended ("FLSA"), 29 U.S.C. §§ 215(a)(2) and 215(a)(5).

B. The Defendants have appeared by counsel and acknowledge receipt of a copy of the Secretary's Complaint.

C. The Defendants waive issuance and service of process and waive answer and any defenses to the Secretary's Complaint.

D. The Secretary and Defendants waive Findings of Fact and Conclusions of Law, and agree to the entry of this Consent Judgment in settlement of this action, without further contest.

E. The Defendants admit that the Court has jurisdiction over the parties and subject matter of this civil action and that venue lies in the Central District of California.

It is therefore, upon motion of the attorneys for the Secretary, and for cause shown,

ORDERED, ADJUDGED, AND DECREED that the Defendants, their officers, agents, servants, and employees and those persons in active concert or participation with them who receive actual notice of this order (by personal service or otherwise) be, and they hereby are, permanently enjoined and restrained from violating the provisions of Sections 15(a)(2) and 15(a)(5) of the FLSA, 29 U.S.C. §§215(a)(2) and 215(a)(5), in any of the following manners:

1. Defendants shall not, contrary to FLSA § 7, 29 U.S.C. § 207, employ any employee who in any workweek is engaged in commerce, within the meaning of the FLSA, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of FLSA § 3(s), for any workweek longer than 40 hours unless such employee receives compensation for his or her employment in excess of 40 hours in such workweek at a rate not less than one and one-half times the regular rate at which he or she is employed.

2. Defendants shall not, contrary to FLSA § 6, 29 U.S.C. § 206, pay any employee who in any workweek is engaged in commerce, within the meaning of the FLSA, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of FLSA § 3(s), wages at a rate less than $7.25 an hour (or less than the applicable minimum rate as may hereafter be established by amendment to the FLSA).

3. Defendants shall not fail to make, keep, make available to authorized agents of the Secretary for inspection, transcription, and/or copying, upon their demand for such access, and preserve records of employees and of the wages, hours, and other conditions and practices of employment maintained, as prescribed by regulations issued, and from time to time amended, pursuant to FLSA §§ 11(c) and 15(a)(5), 29 U.S.C. §§ 211(c) and 215(a)(5) and the implementing regulations found in Title 29, Code of Federal Regulations, Part 516.

4. Defendants shall amend and maintain their payroll practices to comply with the FLSA. To accomplish the provisions of this paragraph:

a. Defendants shall record all hours worked by employees in the payroll records.

b. Defendants shall install punch-in or electronic time clocks at every location and require all employees to punch in their timecards at the start of their shift and punch out at the end of their shift, including punching out for any unpaid bonafide meal periods.

c. Defendants shall maintain all timecards and payroll records for a period of not less than three years.

d. Defendants shall reflect all the amounts paid to employees, regardless of the manner of payment, on the payroll records.

e. Defendants shall pay employees for all compensable waiting time.

f. Defendants shall not direct supervisors or payroll preparers to falsify timecards in any manner including, reducing the number of hours worked by employees.

g. Defendants shall not request, require or otherwise cause employees to sign inaccurate timecards.

h. Defendants shall pay the employees for all compensable time worked even if the employees are sent home early for any reason.

i. Defendants shall not deduct from employee wages or otherwise charge employees for costs of cleaning supplies or any losses caused by customers leaving without paying for the car wash if such charges will result in an employee being paid less than the minimum wage in the pay period in which the charge is made.

j. Defendants shall not deduct from employee wages or otherwise charge employees for the cost of uniforms if such charges will result in an employee being paid less than the minimum wage in the pay period in which the charge is made.

k. Defendants shall not demand or accept a return of any portion of the employees' wages.

l. Defendants shall not threaten, terminate, reduce the pay or otherwise retaliate in any manner against any employee who has asserted his or her rights under the FLSA or who has complained or is suspected to have complained to any government entity regarding violations of the FLSA.

5. On at least an annual basis, Defendants shall hire an independent third party to conduct training at each location of supervisory and administrative employees as to the requirements of the FLSA. Defendants shall maintain documentation of these trainings for a period of four years and provide it to representatives of the Secretary of Labor upon their request. This provision ...


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