Car-wash workers in New York City will get up to $3.9 million in unpaid wages after a settlement between the state and the owner of a car-wash chain.

Investigators found that 21 car washes owned and operated by John Lage and his associates underpaid workers and failed to compensate them for insurance returns. The stolen wages, tips and unpaid hours of overtime work date back to 2006, New York State Attorney General Eric Schneiderman said.

Under the settlement, the car-wash owners will pay up to $2.2 million to about 1,000 workers, many from Mexico or Central America; more than $513,000 to the state Labor Department’s unemployment insurance division; and $1.2 million to the state’s Workers’ Compensation Board.

“This makes you feel valuable, to feel like the laws of this country apply to you,” said car-wash worker Ernesto Salazar, a member of the Retail, Wholesale and Department Store Union.

The unfair practices came to light as part of a 2012 campaign for labor rights and fair wages by the union and advocacy groups. Since then, workers at six city car washes — four of them owned by Lage — have been unionized.

This is the second time that Lage has coughed up money in back pay — in 2009 he agreed to a $3.4 million payout after workers filed a federal lawsuit.

New York Daily News, March 6
Capital Playbook, March 6