California Luxury Carwash Settles Wage Theft Case for $1.2M

A luxury carwash in Southern California must pay a a $1.2 million settlement for wage theft and labor law violations.

The California Labor Commissioner’s Office secured the settlement with Newport Auto Spa Inc., doing business as The Car Spa, a luxury carwash in Newport Beach.

The LCO investigated Newport Auto Spa and reportedly 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, according to investigators.

A total of 23 employees were affected by the 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.

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.