Four O.C. Laundries Closed After Raid

State and federal labor investigators raided four laundry services Tuesday in Orange County, turning up numerous violations and forcing the establishments to close down.

The investigators found that some of the establishments failed to pay overtime and minimum wages, and paid workers in cash, which is illegal, said Henry Huerta, senior state deputy labor commissioner. The violations carry fines of as much as $285,000.

Officials said they closed four of five investigated services because they lacked workers’ compensation insurance.

The raids were the first in this industry by the Targeted Industries Partnership Program, which previously focused on labor violations in the garment, restaurant and agriculture businesses.

Investigators targeted the laundries after receiving anonymous complaints, officials said. A computer check determined that several businesses were not paying state employment taxes, officials said. The laundries provide services under contract for other dry cleaners.

Investigators closed Western Laundry & Cleaners, Crystal Laundry and Best Laundry, all in Garden Grove, and Reliable Laundry in Santa Ana for failing to carry workers’ compensation insurance, according to Huerta.

KNH Laundry in Irvine also was inspected, but investigators found no noticeable violations, Huerta said. The laundry remained open.

Nhiem Dang, owner of Western Laundry, refused to comment. Owners of the other laundries could not be reached.

Authorities planned more raids today in Orange County, Huerta said.

At their first stop Tuesday, investigators cited Western Laundry for paying wages in cash, failing to keep proper records and failing to carry workers’ compensation insurance. The alleged violations carry fines of more than $65,000.

Several of Western’s 10 employees, many of them Guatemalan, applauded the inspection.

“They’re enforcing the laws,” said Saulo Gomez, 41, from Anaheim.

Gomez said Dang, the owner since December, has always paid him in cash. And though he often worked 12 hours a day, six days a week, Gomez said he was not paid overtime.

Another worker, Lisandro Lopez, 18, said employees were paid a flat weekly amount, rather than by the hour.

State officials issued a stop order, forcing Dang to close his establishment until he obtained workers’ compensation. Before investigators left, Dang rushed outside to tell them he had his insurance agent on the phone. But the site was ordered closed.

Officials said the joint enforcement effort is making an impact.

“We all cooperate and share information to better target violators,” said Rick Rice, deputy director of communications for the state Department of Industrial Relations.