Labor Commissioner Settlement Highlights Ongoing State Enforcement of Wage and Hour Compliance
On December 19, 2025, the California Labor Commissioner’s Office announced a $1.2 million settlement resolving alleged Labor Code violations involving Newport Auto Spa, Inc., doing business as The Car Spa, a luxury car wash in Newport Beach. The settlement followed an investigation by the Labor Commissioner’s Bureau of Field Enforcement (BOFE) into the employer’s wage and hour practices.
According to the Labor Commissioner, BOFE investigators determined that employees working as ticket writers, washers, dryers, and detailers were not fully paid for all hours worked, including overtime. Investigators also found that employees were required to remain on site without pay during slow business periods and were routinely denied legally compliant, uninterrupted meal and rest periods. The investigation further identified deficiencies in timekeeping and payroll records, which are themselves independent violations of the California Labor Code.
The settlement resolves claims involving 23 employees, some of whom had worked at the car wash for up to 20 years. The Labor Commissioner assessed approximately $1.5 million in unpaid wages, penalties, and interest, and the matter was resolved through a $1.2 million settlement. Individual payments to affected workers range from approximately $8,500 to more than $92,000. The liable parties include Newport Auto Spa, Inc., its owner Colin Berger, and Meliora Development, LLC, doing business as Premier 7 Car Wash.
In announcing the settlement, Labor Commissioner Lilia García-Brower characterized the conduct as “wage theft” and emphasized that enforcement actions are intended to ensure workers receive the compensation they have earned while promoting fair competition among businesses that comply with the law. A former employee, whose name was withheld to protect privacy, described working off the clock for years and remaining silent out of fear of losing his job, stating that the settlement represented not only financial recovery but also long-delayed accountability.
This matter reflects the ongoing enforcement priorities of BOFE, a specialized unit within the Labor Commissioner’s Office that conducts on-site investigations in industries with historically high rates of Labor Code violations. BOFE focuses on uncovering unpaid wages, overtime violations, meal and rest period violations, child labor violations, failure to carry workers’ compensation insurance, and related compliance issues. Between January 2022 and December 2025, BOFE issued more than 2,300 citations and recovered nearly $50 million in unpaid wages, damages, and interest statewide.
The Newport Auto Spa settlement is part of a broader pattern of enforcement activity announced by the Labor Commissioner in 2025, including recoveries involving construction, restaurant, and worker-classification matters. BOFE has also issued thousands of notices requiring employers to discontinue unlawful practices and has expanded staffing to increase enforcement capacity in regions most impacted by labor law violations.
For employers, the settlement serves as a reminder that wage and hour compliance remains a core enforcement focus for the Labor Commissioner’s Office. Practices such as requiring employees to remain on site without pay, failing to pay overtime, denying compliant meal and rest periods, and maintaining incomplete or inaccurate time and payroll records continue to draw scrutiny. The case also highlights the potential for individual and affiliated-entity liability when Labor Code violations are found.
The Labor Commissioner reiterated that all workers are protected under California law regardless of immigration status and that employees may pursue wage claims even if they are outside the United States. Employers with questions regarding compliance obligations may contact the Department of Industrial Relations for guidance.
As enforcement activity continues to expand, employers would be well served by periodically auditing wage and hour practices, timekeeping systems, and payroll records to identify and address compliance gaps before they result in investigations or significant financial exposure.