Update: NYC response to reports of nail salon employee violations
In response to the New York Times multi-part story exposing nail salon employee violations, New York mayor Bill de Blasio said his administration will take steps to improve salon industry compliance with employment laws, including investigations by NYC agencies.
On May 21, hundreds of volunteers and city employees visited salons and informed manicurists of their rights, and owners of their responsibilities. Fliers were distributed by volunteers at subway stations and transit hubs across New York, explaining workers’ rights to wages, sick leave, and a safe work environment.
De Blasio said in a statement “every New Yorker must be protected from predatory workplace practices that threaten their health and exploit their labor.” Employers will have to post notices that explain that it is illegal to not be paid for work. Each nail salon will be required to secure a bond or increase insurance coverage to cover claims of unpaid wages.
Governor Andrew Cuomo announced emergency measures to protect salon industry nail workers from wage theft and health dangers. This includes the creation of a task force that will investigate wage theft and harmful chemicals in nail salons, among other industry abuses. According to Cuomo, in a statement to the New York Times, nail salons that fail to pay workers for back wages will be shut down, according to new rules.
The New York Department of Consumer Affairs will focus its investigation on employment agencies used by manicurists and their role placing workers in positions that pay less than minimum wage.
New manicurist litigation
Two manicurists, who wish to represent a class, filed a lawsuit against New York City nail salons based on allegations of FLSA violations ( Fernandez v. Nailsway Inc, U.S. District Court for the Southern District of New York, No. 15-cv-3710).
Plaintiffs Gloria Marca and Blana Fernandez claim they worked for a flat fee of $55 and $60 per day, respectively, which resulted in an hourly rate below minimum wage. Their complaint also includes allegations that they did not receive meal breaks or overtime pay.
The salons may claim that the customer tips the plaintiffs received contributed towards their earning minimum wage, but the plaintiffs argues that the defendant did not record the gratuity or inform the workers of such an arrangement.
Gregory Filosa, the lawyer who filed the lawsuit, said his clients approached him before the New York Times articles were published. He believes the minimum wage class would likely include more than 50 individuals.
Analyzing manicurists’ employment violation claims
As the case proceeds, it is likely that both sides with retain experts to assess the data and evaluate alleged damages. Statistical and economic expert Dwight Steward, Ph.D. explains that there is a great deal of data that is considered in a case that analyzes allegations of unpaid overtime and minimum wage violations, stating that “payroll and time data tabulations are often key evidence in these types of wage and hour lawsuits.”
One public resource that experts utilize for industry information when analyzing alleged damages in an employment wage and hour lawsuit is the US Department of Labor Bureau of Labor Statistics. It provides some insight into the employment of manicurists and pedicurists in the ‘occupational outlook handbook’. The most recent calculation of their median pay is $9.24 per hour, or $19,220 per year. This of course does not figure in data for employees who are illegally paid beneath minimum wage.
Read the previous post about manicurist employee employment violations and litigation here.
