Two owners of four Los Angeles car wash businesses were each sentenced to one year in jail and ordered to pay restitution of an estimated $1.25 million dollars in unpaid wages to car wash workers in a landmark plea agreement to resolve multiple criminal counts of repeatedly and willfully stealing wages and violating labor laws, the Los Angeles City Attorney™s office announced. Car wash owners Benny and Nissan Pirian each entered a plea of no contest to six criminal counts, including conspiracy, grand theft, and several labor code violations; they were sentenced to 365 days in jail and four years of probation. The Pirians and the corporations through which they operated the car washes were also ordered to pay full restitution to the victims pursuant to a future hearing.
The criminal complaint alleged that for years, workers at the Pirians™ car washes were paid a flat rate of $35 to $40 per day, far below the federal and state minimum wages, with some working for tips alone. The complaint further alleged that none of the workers were compensated for their overtime and during the day, the workers " who often labored in extreme heat " were either discouraged from taking rest breaks or denied the right altogether. The complaint also alleged that the defendants failed to provide clean drinking water, safety gear, or uniforms, forcing employees to pay money out of their substandard wages for bottled water and company t-shirts.
Throughout the course of the City Attorney™s investigation and prosecution, the complaint alleged further, the defendants attempted to intimidate employees, at times punctuated by threats of physical violence, to dissuade the workers from assisting law enforcement. As part of the plea agreement, the court issued protective orders prohibiting Benny and Nissan Pirian from attempting to intimidate and dissuade any employee, witness or victim from participating in the enforcement of the settlement or the investigation and prosecution of any future law enforcement or legal action, or from engaging in union activity.
To ensure future compliance with the law, during the term of the defendants™ probation, each of the car wash locations must keep their payroll and health and safety records open for inspection at any time by the City Attorney™s Bureau of Investigation, the US Department of Labor, the California Division of Labor Standards Enforcement, and the California Occupational Safety and Health Administration.