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

Tuesday, July 31, 2018 | 1

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.