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

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA


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 shall be in effect for a period of four years from the date entry of this Judgment by the Court.

6. Every six months during the first year of this judgment and once a year thereafter, Defendants shall allow representatives of the Wage and Hour Division of the U.S. Department of Labor to conduct a training/presentation at each business location as to the requirements of the FLSA. Defendants shall require all employees to attend this training and allow the employees to ask questions and confidentially meet and speak with Wage and Hour representatives. This provision shall be in effect for a period of four years from the date entry of this Judgment by the Court.

7. Within 30 days of the entry of this Judgment Defendants shall supply all of their employees with copies of the attached Exhibit 1, in the employees' native languages, which summarizes terms of this Judgment and the employees' rights under the FLSA. The English, Spanish and Armenian versions are attached. In addition, Defendants shall provide copies of Exhibit 1 to all new hires, and post a copy at each business establishment in an area that is frequented by employees and where it is highly visible. This provision shall be in effect for a period of four years from the date entry of this Judgment by the Court.

8. Within 10 days of the entry of this Judgment, Defendants shall post a copy of this Judgment at each business establishment in an area that is frequented by employees and where it is highly visible. This provision shall be in effect for a period of four years from the date entry of this Judgment by the Court.

ORDERED that each party shall bear its own fees and other expenses incurred by such party in connection with any stage of this proceeding, including but not limited to attorneys' fees, which may be available under the Equal Access to Justice Act, as amended; and, it is further

ORDERED that this Court retains jurisdiction of this action for purposes of enforcing compliance with the terms of this Consent Judgment.

U.S. DISTRICT COURT JUDGE

For the Defendants: The Defendants hereby appear, waive any defense herein, consent to the entry of this Judgment, and waive notice by the Clerk of Court:

For: Hollywood Car Wash Inc.

By: ___________________________ _____________________

Benny Pirian Date

Its: __President __________________

For: Celebrity Car Wash Inc.

By: ___________________________ _____________________

Nisan Pirian/Benny Pirian Date

Its: ___________________________

For: Vermont Car Wash Inc.

By: ___________________________ _____________________

Benny Pirian Date

Its: __President __________________

For: Benny Pirian

By: ___________________________ _____________________

Benny Pirian, Individually Date

For: Nisan Pirian, aka, Piaman Nisan Pirian

By: ___________________________ _____________________

Nisan Pirian, Individually Date Attorneys for the Defendants

BLANK ROME LLP

HOWARD M. KNEE, Attorney Blank Rome LLP 1925 Century Park East, Suite 1900 Los Angeles, CA 90067 Tel: (424) 239-3439 Fax: (424) 239-3414

For the Defendants: The Defendants hereby appear, waive any defense herein, consent to the entry of this Judgment, and waive notice by the Clerk of Court:

For: Hollywood Car Wash Inc.

By: ___________________________ _____________________

Benny Pirian Date

Its: __President __________________

For: Celebrity Car Wash Inc.

By: ___________________________ _____________________

Nisan Pirian/Benny Pirian Date

Its: ___________________________

For: Vermont Car Wash Inc.

By: ___________________________ _____________________

Benny Pirian Date

Its: __President __________________

By: ___________________________ _____________________

For: Benny Pirian

Benny Pirian, Individually Date

Nisan Pirian, Individually Date For: Nisan Pirian, aka, Piaman Nisan Pirian

By: ___________________________ _____________________

Attorneys for the Defendants

BLANK ROME LLP

HOWARD M. KNEE, Attorney Blank Rome LLP 1925 Century Park East, Suite 1900 Los Angeles, CA 90067 Tel: (424) 239-3439 Fax: (424) 239-3414

For the Plaintiff:

M. PATRICIA SMITH Solicitor of Labor

LAWRENCE BREWSTER Regional Solicitor

DANIEL J. CHASEK Associate Regional Solicitor

BORIS ORLOV, Attorney Date Attorneys for the Plaintiff U.S. Department of Labor

Exhibit 1

LEGAL NOTICE TO ALL EMPLOYEES

The Fair Labor Standards Act provides that all employees must be paid minimum wage for all hours worked. In addition, employees must be paid overtime, at a rate of time and one half their regular rate, for the hours they work over 40 in a workweek. All employees, whether they are paid hourly or on a piece or flat rate basis are entitled to overtime when they work over 40 hours.

To resolve a lawsuit brought by the Department of Labor, the United States District Court entered an Order forbidding Hollywood Car Wash, Inc., Celebrity Car Wash, Inc., Vermont Car Wash Inc., from violating the minimum wage or overtime requirements of the Fair Labor Standards Act. All employees who work in this establishment can help the employer not to violate the Court's Order. If you think you are not being paid in accordance with the law, call the U.S. Department of Labor, Wage and Hour Division, at (213) 894-6375 and your name will be kept confidential.

NOTICIA LEGAL A TODOS LOS EMPLEADOS

La ley de el Fair Labor Standards Act determina que se les debe de pagar a todos los empleados el sueldo minimo por todas las horas que ellos trabajen. A su vez, tambien estipula que todo empleado que trabaje extra, mas de 40 horas en una semana laboral, se les debera pagar a tiempo y medio de lo que ganen por cada hora extra trabajada. To- dos los empleados, independientemente de que se les pague por hora o por pieza, tienen derecho a que se les pague el tiempo extra cuando trabajan mas de 40 horas en una se- mana laboral.

Para resolver una demanda laboral iniciada por el Departamento Del Trabajo, la Corte de Distrito de los Estados Unidos expidio una orden que prohibe a Hollywood Car Wash Inc., y Celebrity Car Wash Inc., Vermont Car Wash Inc., de violar los requisi- tos de pago de el sueldo minimo y de el pago de sobretiempo que estipula la ley de el Fair Labor Standards Act.

Todos los empleados que trabajan en este establecimiento pueden ayudar a que este em- pleador no viole la orden de la Corte. Si usted piensa que no le estan pagando de acuerdo a la ley, por favor llame al Departamento del Trabajo de los Estados Uni- dos, Division de Horas y Salarios, al (213) 894-6375. Su llamada sera confidencial.

Armenian

20111025

© 1992-2011 VersusLaw Inc.



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