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Owners of Two Car Wash Chains to Pay Millions to Settle Labor Violations

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TWC News: Owners of Two Car Wash Chains to Pay Millions to Settle Labor Violations
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The owners of two car wash chains are paying millions of dollars in fines to settle labor violations.

State Attorney general Eric Schneiderman says that John Lage and his son, Michael Lage, and Fernando Magalhaes committed the violations over a period of six years.

Schneiderman says that at 21 car washes across the city, the men failed to pay overtime, deducted pay for breaks that their employees didn't really take, and took employees' tips for themselves.

They'll have to pay back a total of $2.2 million to more than 1,000 workers.

They will also pay more than $1 million to the Workers' Compensation Board and $500,000 to the Department of Labor.

The men will also have to pay for up to three years of independent monitoring of their labor practices.

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