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WHD snags nail salons for wage violations

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in Compensation and Benefits,Human Resources

The U.S. Department of Labor’s Wage and Hour Division settled Fair Labor Standards Act violations with two New York City nail salons. In both cases, the salons paid employees a flat weekly rate plus commission regardless of how many hours they worked.

WHD filed charges against both Ada Nails & Spa in Manhattan and Hai Hua Beauty Salon in Whitestone. Twenty-one workers will split a settlement of $47,347 in back wages and overtime pay.

Both salons argued that their employees qualified for an exemption as inside salespeople. The WHD didn’t buy it. The inside sales exemption only applies if regular pay is more than one and one-half times the minimum wage, and the employee earns more than half of his or her pay from commissions.

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