Maine Dept. of Labor Wins Case Against East Coast Coatings, Obtaining a Judgment for $104,191.95 in Owed Wages and Liquidated Damages for Employees

August 21, 2025

For Immediate Release: August 21, 2025

Maine Dept. of Labor Wins Case Against East Coast Coatings, Obtaining a Judgment for $104,191.95 in Owed Wages and Liquidated Damages for Employees

AUGUSTA - The Maine Department of Labor's Bureau of Labor Standards continues to stand up against worker exploitation and has helped 29 workers in Penobscot County. The Department won its case against Mostafa Elfaham and Maine Ride Detailing LLC, doing business as East Coast Coatings, and obtained a judgment for $34,730.65 in earned wages and tips, and $69,461.30 in liquidated damages for 29 employees - https://www.maine.gov/labor/bls/docs/2025/wagehouraction/MaineRideDetailingCourtJudgement469659_Redacted.pdf .

"Ensuring that workers are paid for every hour they work is a top priority for the Department. We are committed to upholding the law and supporting fair and responsible businesses. When violations occur, we will use all the available tools at our disposal to hold unethical employers accountable and to secure the wages and damages owed to workers," said Labor Commissioner Laura Fortman. "Our next step is to begin the process of collecting these unpaid wages and liquidated damages on behalf of the affected workers."

"Most Maine employers treat their workers right and try hard to comply with state and federal laws," said Bureau of Labor Standards Director Kate Burkhart. "But when an employer exploits their workers, refusing to pay them for their work or violating other labor standards, the Wage and Hour Division will pursue every remedy possible to enforce the workers' rights."

The Department proved that Elfaham and Maine Ride Detailing LLC violated multiple wage and hour laws by failing to pay their employees for the full time they worked and withholding the employees' tips paid by customers using a credit card. Specifically:

• Between January 1, 2020 and March 14, 2025, Elfaham and the business received and kept $29,982.80 in credit card tips;

• Between January 1, 2020 and March 14, 2025, Elfaham and the business failed to provide accurate pay statements to their employees either by not providing pay statements at all, or by providing pay statements that did not include credit card tips earned by the workers.

• For 266 pay periods, Elfaham and the business failed to pay workers on time or in full.

• Elfaham and the business did not pay 3 employees for some or all of their work.

In addition to the wages owed and liquidated damages to the 29 workers, Elfaham and Maine Ride Detailing LLC owes the Maine Department of Labor $35,684.50 in penalties.

Cases like this one highlight the importance of using all the tools available to the Bureau to collect unpaid wages, liquidated damages, and penalties from employers who violate labor laws. Prior to 2024, the Bureau could only pursue collection by initiating a civil lawsuit against the employer. After changes in the law - https://www.maine.gov/labor/news_events/article.shtml?id=12927774 , effective in August 2024, the Bureau now has the authority to order the payment of back wages, liquidated damages, and penalties, and to pursue a judgment to make workers whole. The Bureau partners with the Attorney General's Office to do this.

This case shows the effectiveness of Strategic Enforcement, through which the Wage and Hour Division focuses limited investigative resources where it can help the most workers: on industries where data shows that violations are known to occur at a higher rate. Strategic Enforcement maximizes impact by:

• Prioritizing High-Risk Sectors - focusing on industries where data shows a higher incidence of labor law violations.

• Enhancing Prevention Efforts - using education, outreach, and compliance guidance to reduce violations.

• Data-Driven Enforcement - using complaint data, industry trends, and employer records to identify key offenders.

• Maximizing Deterrence - imposing penalties, increasing public awareness, and pursuing legal action to discourage noncompliance.

• Building Partnerships - working with government agencies, worker organizations, and industry groups for broader enforcement impact.

The full list of violations and final agency actions so far in 2025 - https://www.maine.gov/labor/bls/whv2025/index.shtml, is available at https://www.maine.gov/labor/bls/whv2025/index.shtml and is updated on a quarterly basis.

Anyone who believes their employment rights have been violated, or employers who have questions, are encouraged to reach out to the Wage and Hour Division at (207) 623-7900 or https://www.maine.gov/labor/contact/