Investigators from the California Labor Commissioner’s Office issued over $900,000 in fines to businesses in the carwash industry in a two day statewide enforcement sweep. The penalties included a total of $600,900 issued to 76 unlicensed carwash businesses that were cited for not having a registration. “Requiring carwash businesses to register with the state allows us to focus on those businesses that undercut their competition, which makes it difficult for legitimate carwash businesses to stay in operation,” said California Labor Commissioner Angela Bradstreet. “As part of the underground economy, these illegal businesses often do not pay state taxes, and take advantage of employees by not providing workers’ compensation coverage or paying proper wages.”
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