IR #07-35
July 27, 2007

Kate McGuire
Dean Fryer
(415) 703-5050

EEEC announces results of car wash enforcement sweeps

Orange County – Investigators with the Economic and Employment Enforcement Coalition (EEEC) recently targeted businesses in the car wash industry that were operating illegally. The businesses visited were in Orange County.

EEEC is a multi-agency task force designed to root out California's underground economy. In the recent enforcement sweep in the car wash industry, the EEEC targeted businesses that avoid labor, tax and licensing laws, safety and health regulations and carry no workers' compensation insurance for their employees.

"As of July 2006, California companies that employ individuals who detail or wash cars were required to be registered with the state," said EEEC Executive Director David Dorame. "We have found that companies that are not in compliance with this requirement are often out of compliance with other California labor laws. Everyone must play by the rules."

The results of the sweep are as follows:

Number of inspections19
Number of citations issued.33
Total citation amount.$548,150
Citations issued forno workers' compensation, not being registered, improper payment of minimum wage and overtime, not providing itemized wage deduction statements, and no work permit for minors.

Launched in July'05 with the full support of Governor Arnold Schwarzenegger, the EEEC was formed with a dual mission: enforcing California labor laws and educating business owners and workers on those laws and regulations. On the enforcement side, the EEEC aims to root out businesses participating in the underground economy, which cost the state and legitimate businesses millions each year, in many cases passing the cost on to the consumer. In addition, EEEC helps educate business owners on California's employment laws and their responsibilities, and educates employees on their rights as workers.

EEEC is a collaboration of the Labor and Workforce Development Agency's Department of Industrial Relations (Division of Occupational Safety and Health; Division of Labor Standards Enforcement) and the Employment Development Department. The U.S. Department of Labor participates in the EEEC, as well as the Contractors State License Board when targeting the construction industry.

The EEEC conducts enforcement sweeps in various industries, including garment, agriculture, construction, horse race track, car wash, janitorial and restaurant, which have been identified as having a high degree of workplace violations and lack of regulatory compliance. EEEC also holds workshops throughout the state to educate employers and workers on labor and wage issues. For more information on the EEEC, please visit our website at

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