State Finds Labor Issues at Car Washes

A probe by the New York State Labor Department has found widespread labor violations within the car wash industry.

A third of the car washes inspected were in New York City, and more than 78 percent of those failed to pay minimum wage and overtime.

Agency commissioner Patricia Smith says statewide, close to 1,400 workers are owed $6.5 million in back wages.

SMITH: These car washes that we have already inspected will be re-inspected. And if we find continuing violations we will be sending referrals to district attorneys for prosecution.

REPORTER: Smith says many of the underpaid workers are foreign born and were often made to share their tips with managers. According to the Labor Department, there are about 640 car washes statewide.

The probe involved 13 percent of them. Smith says this is enough to conclude that the industry as a whole is troubled.