On July 27th, 2017

Towing Companies Cited $4.8 Million for Wage Theft Violations

SANTA ANA – On July 26, 2017, the Labor Commissioner’s Office announced that it cited two California towing companies in Anaheim and Oakland $4,874,661 for multiple wage theft violations affecting 187 workers including tow truck drivers, dispatchers and mechanics.

“These investigations can be lengthy and complicated, and require investigators who know the labor laws inside and out,” said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona. “These investigators work to ensure employers are paying their employees properly.”

In December 2016, the Labor Commissioner’s Office launched an investigation into Irvine Auto Towing, Inc. dba Pride Towing and Recovery in Anaheim, and Yaco Investments Inc. dba Stride Towing and Recovery in Oakland, after a former worker at Pride Towing filed a wage claim and reported labor law violations. Noel Yaqo and his son Aram Yaco own and operate both towing companies through their corporations, Irvine Auto Towing, Inc. and Yaco Investments Inc.

According to the investigation:  Employees generally worked 12-hour shifts with no meal or rest breaks, and some worked seven days a week. Pride Towing typically paid workers $110 per day, resulting in an underpayment of regular wages, and Stride Towing failed to pay workers for all overtime hours worked. Drivers and mechanics also incurred unlawful deductions and were charged for uniforms and for any accidents or damages incurred while working in the field.

“This is an egregious case of wage theft affecting a large group of workers who were denied a just day’s pay and forced to work without meal or rest breaks,” said Labor Commissioner Julie A. Su. “My office enforces California’s labor laws to prevent employers from cheating workers as a means to gain an unfair advantage over their law-abiding competitors.”

The Labor Commissioner’s Office issued citations to Irvine Auto Towing, Inc. and Yaco Investments Inc. for violations of minimum wage, overtime and meal and rest period provisions for 129 workers at Pride Towing from June 15, 2014 to February 16, 2017, and for 58 workers at Stride Towing from August 15, 2015 to February 16, 2017. The citations include liquidated damages and waiting time penalties, as well as itemized wage statement violations. Both employers have appealed the citations.

 

 

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