Newport Beach luxury carwash settles wage theft case for $1.2 million
Los Angeles – The California Labor Commissioner’s Office (LCO) has secured a $1.2 million settlement with Newport Auto Spa, Inc., doing business as The Car Spa, a luxury carwash in Newport Beach, after uncovering widespread wage theft and labor law violations.
The LCO’s Bureau of Field Enforcement (BOFE) investigated Newport Auto Spa and found that employees working as ticket writers, washers, dryers, and detailers were denied full payment for all hours worked, including overtime. Workers were also required to remain on-site without pay during slow business hours and were routinely prevented from taking uninterrupted meal and rest breaks.
What California Labor Commissioner Lilia García-Brower said: “Employers who deny workers their full pay exploit their workforce and hurt honest businesses that follow the law. This settlement ensures these workers finally receive the wages they earned and sends a clear message that wage theft will not be tolerated.”
The Labor Commissioner distributes settlement checks to affected car wash workers in Newport Beach.
A total of 23 employees were affected by this settlement. Some had worked at the car wash for up to 20 years. They were consistently underpaid and expected to work off the clock. The investigation confirmed a pattern of underpayment and a failure to maintain accurate payroll records.
“I started working there at 19, and for twenty years I put up with scolding, threats, and never getting my full pay,” said a former employee, whose name is being withheld to protect their privacy. “I worked through sickness, missed moments with my family, and I stayed quiet because I was scared of losing my job. This win means more than money. It means that after decades of fear and wage theft, someone finally heard us. I hope my experience encourages other workers to speak up and claim their rights.”
The Labor Commissioner assessed $1.5 million in unpaid wages, penalties, and interest, and the case was resolved through a $1.2 million settlement. Payments to affected workers range from $8,500 to $92,800.
The liable parties include Newport Auto Spa, Inc., Colin Berger, and Meliora Development, LLC, doing business as Premier 7 Car Wash.
About the Bureau of Field Enforcement
The LCO reminds the public that all workers, regardless of immigration status, are protected under California law, and individuals may file wage claims even if they are outside the United States. The newly launched immigration protection helpline at 1-855-526-7775 is available to help workers understand their rights.
BOFE is a unit within the LCO enforcing key labor laws through on-site investigations and strategic enforcement actions.
BOFE targets industries with high rates of labor violations, conducting workplace inspections to uncover wage theft, child labor violations, failure to carry workers’ compensation insurance, and other unlawful employment practices. Its work helps ensure fair treatment for workers while promoting a level playing field for responsible employers.
BOFE has also issued more than 3,600 notices to discontinue labor law violations in the past year, and corrected violations that collectively impacted more than 45,000 California workers.
To meet growing enforcement demands and expand outreach, BOFE has also increased staffing across key regions, strengthening its presence in communities most impacted by labor violations.
Workers who have questions about labor laws enforced by the LCO can call 1-833-LCO-INFO (833-526-4636) between the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday, with services available in Spanish and other languages.
The LCO is a division of the Department of Industrial Relations.
Californians can follow the Labor Commissioner on Facebook and X (Twitter).
Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov
Media Contact: Communications@dir.ca.gov, (510) 286-1161