A car wash in Pennsylvania is on the brink of bankruptcy after a lawsuit was filed over claims that it did not pay the minimum wage for its employees.
SilverStar Car Wash, a small car wash that opened in the spring of 2016, claims it did pay $1.9 million in wages to the state of Pennsylvania for 2016, but it filed for bankruptcy in May, and is trying to collect more than $1 million in unpaid wages.
“The business is in good shape,” owner and manager Scott Stuck said in a statement, according to the Philadelphia Inquirer.
“We have all the employees who were employed through July 1.
The business is fully operational.”
The company said it had lost $300,000 in 2016 alone.
SilverStars car wash had about 1,000 employees, but employees say they didn’t receive the wages they were owed.
In August, SilverStar filed for Chapter 11 bankruptcy protection.
Silverstar Car Wash was founded in 1996, and the owners have been operating out of their garage since 2012.
According to the Inquireer, SilverStars owner and managers told the newspaper that they did not expect to collect any of their debts until after the bankruptcy filing.
Stuck, who said he was told he would receive a check by the end of the week, said he had been making about $10 an hour as a janitor at the time, and that he would continue to work to keep up with his debts.
“I’m not going to give up,” he told the Inququirer.
Stunk said he still owed $1,500 in unpaid payroll taxes.
The car wash is currently paying its employees at $1 an hour, according a statement from the Pennsylvania Department of Labor and Industry.
The department has also told employees to file wage claims with the state labor department.