A new lawsuit alleges the company is “unfair and discriminatory” because it has been paying “large sums of money” to the city for its services.

Read moreThe lawsuit was filed Wednesday in federal court in Washington, D.C. The lawsuit comes amid a citywide push by Mayor Muriel Bowser to raise taxes and impose sales tax on car wash businesses, including carwashes owned by car wash workers.

The lawsuit alleges that in a bid to make up for lost business, carwashers were offered a $1,000 incentive payment for every $1 million in revenue that they generate.

The deal was made on March 15, 2018, just days after the city began requiring carwasheys to pay sales taxes.

In a statement, Car Wash said it would defend itself vigorously in the lawsuit.

Car Wash has been a leader in the automotive industry since its founding in 1978.

The company has a fleet of approximately 500 vehicles, and employs more than 100 people.