Settlement with Passaic Laundromat Spotlights Widespread Labor Violations Across Industry

Settlement to improve wage practices impacts over 220 workers at Brite Services, Inc.

NEW JERSEY - In a major enforcement move, the New Jersey Department of Labor and Workforce Development (NJDOL) has secured an enhanced compliance agreement with Brite Services, Inc., a commercial laundromat in Passaic County, after identifying multiple labor law violations. The agreement comes as part of NJDOL's strategic initiative targeting the coin-operated laundromat sector, aiming to uphold worker rights under New Jersey’s Wage and Hour laws.

Investigators from NJDOL's Wage and Hour Division discovered that Brite Services, which operates under the name Star Laundry and serves hotels across New Jersey and New York, had misclassified over 40 employees. These workers, including drivers, helpers, washers, and office staff, were improperly labeled as managers to exempt them from overtime pay, despite their duties not justifying such classification. The company also failed to pay minimum wage and overtime, kept incomplete employment records, delayed wage payments, and did not inform employees about their earned sick leave rights.

“Our investigations continue to show that misclassification of laundromat workers is widespread,” said Labor Commissioner Robert Asaro-Angelo. “Our department is committed to ensuring employees are paid the wages and benefits they have lawfully earned, and that all employers comply with the law. Violations of wage and hours laws are preventable if employers and employees understand their responsibilities and rights.”

Under the terms of the settlement, Brite Services has committed to rectifying these issues by reimbursing affected employees with back wages, damages, penalties, and fees totaling $209,175.20. This includes addressing a previously issued judgment of $6,626. The agreement stipulates ongoing oversight by an independent auditor through December to ensure adherence to labor laws, with the NJDOL being notified of any compliance failures.

This enforcement action highlights a broader issue within the retail laundromat industry, where an initial NJDOL probe found that 80% of facilities did not comply with the Earned Sick Leave law, affecting over 130 workers. The NJDOL's strategic focus on industries like laundromats and drywall, known for frequent non-compliance and underreporting by employees, represents an effort to strengthen protections for vulnerable workers.

Employers are reminded of the importance of adhering to both state and federal labor laws, particularly concerning overtime exemptions which require specific salary thresholds and job duties as outlined in the Fair Labor Standards Act. For more details on compliance with wage and hour regulations, businesses can visit myworkrights.nj.gov or the U.S. Department of Labor at dol.gov.

Businesses seeking to ensure compliance with labor laws are encouraged to contact NJDOL at wagehour@dol.nj.gov for guidance and support in maintaining lawful work environments.