Rohit Shokeen, 23, and Dinesh Singh, 27, are Indian nationals who worked at Car-Fe since 2010 and 2011, respectively, as car groomers.
Dinesh Singh was promoted to an operational manager role and was in the process of applying for permanent residency in New Zealand.
The men were both in New Zealand on working visas granted on condition of their employment at Car-Fe and now fear they will be forced to leave the country.
They claim Mr Ridge breached employment law by paying them incorrectly and withholding holiday pay and that his treatment of them - which they described as "bullying and harassment" - breached health and safety regulations.
The pair are seeking reimbursement for lost wages, holiday pay entitlements and compensation for "humiliation, loss of dignity and injury to feelings".
Mr Shokeen and Mr Singh told the Weekend Herald they were subjected to name calling by Mr Ridge and his teenage son. They also allege they had poor work conditions and were required to complete tasks outside their job description.
An MBIE spokesman declined to comment on the ERA process, but documents seen by the Herald showed Mr Shokeen's paperwork had been lodged and a date set for mediation within the next fortnight.
The Labour Inspectorate confirmed an investigation into Car-Fe was started after a complaint was received on May 12.
Mr Shokeen said the ongoing issues came to a head on May 11 when he tried unsuccessfully to raise the issues with Mr Ridge. The conversation turned into an argument and he left the Car-Fe premises, contacted an employment lawyer and lodged a personal grievance on May 24.
Mr Ridge contacted Immigration New Zealand and said Mr Shokeen and Mr Singh were no longer employed by him.
Paperwork showed that on June 16 and June 17 respectively, the men were contacted by an MBIE staff member who said without their employment at Car-Fe they no longer met the terms of their working visas.
The men have both applied for visitor visas.
Attempts to contact Mr Ridge were unsuccessful. In response to emailed questions about the claims, Car-Fe manager Yadwinder Singh said: "The claims raised against Car-Fe Ltd are without any merit and in our opinion amount to blackmail and extortion.
"Car-Fe Ltd looks forward to a favourable outcome by continuing to follow the correct channels and procedures as set out under NZ law."