Report: Four Spas Shuttered for Underreporting Payroll, Operating Without Insurance

Thursday, May 25, 2017 | 0

The Connecticut Department of Labor issued stop-work orders to four spas that it says were either operating without workers’ compensation coverage or intentionally underreporting payroll or number of workers, according to a report by the Record-Journal in Meriden.

Spas throughout the state were targeted as part of a sweep that was in part spurred by previous violations discovered at nail salons, according to a spokeswoman for the Department of Labor.

“This is where we find the biggest violations of not having worker protections that should be at every business,” Nancy Steffens said. “We anticipated that we might see the same problems as in nail salons.”

The Record-Journal reports that Golden Crystal Spa in Wallingford received a stop-work order after state inspectors found the company had no work comp or unemployment insurance, had no payroll records and “underreported wages for means of committing fraud.”

Sunny Spa in Wallingford and Flower Spa in Meriden were also shuttered for underreporting wages and not maintaining payroll records. Serenity Massage and Wellness in Meriden was shut down for underreporting employees and not having payroll records.

The companies must remain closed until they demonstrate to the Department of Labor that the violations have been corrected.