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Nail Salon Owner Fined $1.2 Million for Misclassification, Wage Theft

  • State: California
  • Topic: WEST
  • - Popular with: Legal
  • -  1 share

A Southern California nail salon was hit with more than $1.2 million in citations for misclassifying and failing to properly pay 36 workers.

Following up on a complaint filed through the California Private Attorneys General Act, the Labor Commissioner’s Office launched an investigation into Young’s Nail Spa in Temecula. Records audited as part of the investigation revealed that 36 workers were paid on a piecemeal basis rather than based on hours worked.

Workers typically worked 9.5 to 10 hours a day and allegedly did not receive meal or rest breaks. They also were not paid for overtime, according to a statement released by the Labor Commissioner’s Office.

Young’s Nail Spa also failed to carry workers’ compensation coverage for the last three years.

The Labor Commissioner’s Office said it cited the salon $160,000 for misclassifying workers as independent contractors, and $207,887 for not carrying comp coverage. Other civil penalties include $104,000 for not providing wage statements, and $100,300 for wage violations.

The salon must also pay $670,040 to workers for unpaid wages.

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Do not post libelous remarks. You are solely responsible for the postings you input. By posting here you agree to hold harmless and indemnify WorkCompCentral for any damages and actions your post may cause.
Jul 31, 2018 a 10:07 pm PDT

[deleted]

Christine Crawford Jul 31, 2018 a 10:07 pm PDT

Christine Crawford Jul 31, 2018 a 10:07 pm PDT
I am surprised as I have been to this nail salon and it is very upscale and very pricey. Curious if this company will make it through. I can't tolerate underground 1099's employees that have to be there for certain hours and the employer is too cheap to pay their social security portion and worker's comp coverage let alone state payroll taxes. Let this be a wake up call to all other companies that abuse the system. Chris Crawford, Account on Us Medical Billing, Temecula, CA

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