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Home » Business » Chicago-area Car Care Centers to Pay $799K

Business

Chicago-area Car Care Centers to Pay $799K

Martin Smith
Last updated: September 20, 2024 4:52 pm
Martin Smith - Editor in Chief 52 Views
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Chicago-area Car Care Centers to Pay $799K
Chicago-area Car Care Centers to Pay $799K
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The US Department of Labor recovered $799K in back wages and damages owed to 110 employees denied overtime by Chicago-area car care centers.

The court order resolves the department’s allegations of overtime and recordkeeping violations from the Chicago-area car care centers.

CHICAGO, IL (STL.News) A federal judge has ordered Mariusz Lekarczyk, the owner and operator of four Chicago-area We Wash Hand Wash and Car Detail Centers, and We Wash Car Care Center Inc. to pay $799,566 in back wages and damages to 110 employees and $110,990 in penalties to the U.S. Department of Labor, as part of a consent judgment and order obtained by the department.

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The US Department of Labor recovered $799K in back wages and damages owed to 110 employees denied overtime by Chicago-area car care centers.The court order resolves the department’s allegations of overtime and recordkeeping violations from the Chicago-area car care centers.

On September 19, 2024, the U.S. District Court for the Northern District of Illinois in Chicago ordered Lekarczyk and his car care centers company to pay the back wages owed by May 1, 2025, and penalties by August 1, 2025.  The employer must immediately display posters and inform employees about their rights under the Fair Labor Standards Act.

The court’s action was spurred by the filing of a complaint in district court after an investigation by the department’s Wage and Hour Division discovered Lekarczyk did not pay workers overtime at time and one-half their regular rate of pay for hours over 40 in a workweek or keep records of payments to workers, as required.  The division found violations at the car care centers in Chicago locations at 2042 S. Halsted St. and 4660 W. Lawrence Ave. from at least June 23, 2020, to June 22, 2022, and at their 2744 Skokie Valley Road, Highland Park, and 5600 New Wilke Road, Rolling Meadows locations between Oct. 21, 2020, and Oct. 20, 2022.

The complaint alleges that Lekarczyk and his car care centers paid workers by check for the first 40 hours they worked and then paid them in cash for overtime hours at straight time without the overtime rates.

The division previously investigated the Halsted and Lawrence locations in 2013, and similar overtime violations were found.

“The recovery of these rightfully earned wages will have a tremendous impact on the employees who earned them and sends a clear message to all employers that we will not tolerate an employer’s failure to pay overtime,” explained Wage and Hour Division District Director Tom Gauza in Chicago.  “We appreciate the court’s support in the Department of Labor’s fight on behalf of workers and in holding employers legally accountable.”

“The U.S. Department of Labor will take all necessary legal actions – including recovering back wages, seeking damages, and assessing penalties – to hold employers who violate the law accountable,” said Regional Solicitor of Labor Christine Z. Heri in Chicago.

The department’s compliance guide explains employees’ rights under the Fair Labor Standards Act.

TAGGED:Illinois
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By Martin Smith Editor in Chief
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Martin Smith is the founder and Editor in Chief of STL.News, an independent digital news publication owned and operated by St. Louis Media, LLC. He founded STL.News in 2016 and oversees its editorial direction and digital publishing operations. His coverage includes business, financial markets, securities litigation, government and regulatory developments, legal news, and St. Louis-area businesses and economic activity.
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