Car Washes Run by Koi Restaurant Owners Sued for $6.6 Million

Attorney General Jerry Brown filed a $6.6 million lawsuit Monday against eight car washes owned by the Sikder family, proprietors of the Hollywood restaurant Koi. An investigation by the Attorney General's office revealed a widespread pattern of worker exploitation, unpaid wages and illegal business practices. 

"While Koi served up yellowtail tartare and Kobe beef carpaccio to Hollywood celebrities, the restaurant's owners routinely denied wages, breaks and overtime pay to workers at their unlicensed car washes," Brown said in a statement. "Today's lawsuit seeks to end this widespread pattern of worker exploitation."

The lawsuit, which was filed in Los Angeles County Superior Court on Monday, seeks $6.6 million to pay back lost wages and civil penalties, and an injunction to prevent the defendants from committing similar violations in the future.  

Patch was unable to reach the owners of Koi for comment.

Brown's lawsuit comes after a five-month investigation of eight Sikder-owned car washes in Fair Oaks, Folsom, Irvine, Laguna Hills, Laguna Niguel, Santa Monica, San Ramon and Venice. 

According to the Attorney General's office, investigators interviewed more than 80 workers and found the car washes routinely denied workers minimum wage and overtime, failed to pay wages owed to those who quit or were terminated, denied rest and meal breaks, and created false records of time worked.

The Attorney General's office says the car washes also owe more than $1.8 million in unpaid taxes, according to recorded liens. 

In addition to their car wash businesses, members of the Sikder family own and operate Koi, a high-end Japanese restaurant with locations in West Hollywood, New York, Las Vegas and Bangkok. The restaurants gross millions of dollars annually and are regularly featured in gossip magazines and on television shows, including HBO's Entourage, because of their celebrity clientele, according to Brown's announcement.

"The car washes required employees to report to work hours early and be available, unpaid, until business picked up," the statement said. "When workers were paid, many received paychecks that could not be cashed because of insufficient company funds. Additionally, the car washes operated for years without licenses from the Labor Commissioner, which are required under California law." 

The eight car washes named in Monday's lawsuit are: 

- Bonus Car Wash located at 2800 Lincoln Blvd. in Santa Monica 
- Crown Valley Car Wash located at 25991 Crown Valley Parkway in Laguna Niguel 
- Gold Rush Auto Spa located at 7620 Folsom-Auburn Blvd. in Folsom 
- Gold Rush Auto Spa II located at 4350 Sunrise Blvd. in Fair Oaks 
- Laguna Hills Union 76 Station [Car Wash] located at 24795 Alicia Parkway in Laguna Hills 
- Marina Car Wash located at 2305 Lincoln Blvd. in Venice 
- Sponges Car Wash located at 2061 Camino Ramon in San Ramon 
- Wash & Go Hand Wash (also known as Wash & Go Hand Carwash Corp and Irvine Auto Spa) located at 3080 Main St. in Irvine