Five massage parlos closed, fined
By Alfred Lee and Emma Gallegos, Staff Writers
Posted: 12/31/2008 02:41:27 PM PST
ARCADIA - State officials shut down five massage parlors and fined one business $1.8 million for alleged labor code violations.
Arcadia Police Department investigators and officials from the state Employee Development Department conducted inspections of the locations Dec. 19, police said.
"What was discovered was that employees working at the facilities were being treated unfairly," Arcadia police Lt. Paul Foley said. "They were required to stay there hours upon a day and were not paid at all unless they did a massage. In essence, they were not receiving hourly wages."
New Life Acupuncture, 610 E. Live Oak Avenue, was fined $1.83 million by the EDD for allegedly violating laws requiring employers to provide pay stubs and to provide workers' compensation insurance.
Four other locations were fined between $2,000 and $4,000 each for allegedly violating workers' compensation insurance laws, Foley said.
The four other locations were Ocean Health Center, 556 W. Las Tunas Drive; C. H. Health Center, 178 W. Live Oak Ave.; Arcadia Spa, 28 E. Duarte Road; and Best Health Center, 25 N. Santa Anita Ave.
"That $1.8 million number was based upon what the violation is per employee," he said. "It keeps multiplying per employee, so the tally gets to such a high number, based upon what labor inspectors discovered."
Some of the businesses were not able to provide proof that workers - and taxes - were being paid properly, Foley added.
Inspectors at the EDD could not be reached for comment Wednesday.
The fines and closures continued a crackdown on massage-related businesses in the city. This year, police conducted a series of inspections - four, including the Dec. 19 visits - of such businesses.
Police have alleged that many of the businesses serve as fronts for prostitution, and city officials have issued code violations at several locations this year.
In October, the City Council adopted a year-long ban on new license applications for businesses that offer massage therapy services.