Phoenix company ordered to pay $281K after wage violations and retaliation

PHOENIX — A Phoenix-based laundry business, Sparklean Laundry, has been fined over $281,000 following a federal investigation that revealed wage violations and subsequent retaliation against its workers. The U.S. Department of Labor (DOL) discovered the company failed to pay overtime wages to 70 employees and later demanded kickbacks when ordered to compensate the affected workers.
The investigation, conducted in 2020, exposed that one employee was owed nearly $7,000 in back wages. Despite initially agreeing to pay the overdue wages, Sparklean Laundry failed to uphold its commitment. The company resorted to demanding kickbacks from the workers, submitting falsified records, and threatening employees who cooperated with the federal investigation.
On October 11, the U.S. District Court for the District of Arizona mandated Sparklean Laundry to pay $87,735 in back wages, $94,135 in liquidated damages, and $100,000 in punitive damages. The court’s decision highlights the gravity of the company’s actions and serves as a stern warning about the legal repercussions of violating workers’ rights.
“Workplace retaliation is intolerable and illegal, and demanding that employees return their hard-earned wages to their employer is among the most egregious types of retaliation we regrettably see,” stated Marc Pilotin, Regional Solicitor of Labor. The DOL continues its commitment to advocating for workers’ rights and encourages employees to report any violations of the Fair Labor Standards Act.
The substantial fine imposed on Sparklean Laundry sends a clear message to employers across Arizona: wage violations and retaliation against workers will not be tolerated. As the DOL intensifies its efforts to eradicate unfair labor practices, businesses are reminded of their legal obligations to their employees and the critical importance of upholding workers’ rights.