what to know
Between 2015 and 2021, the salons failed to pay minimum wage to more than 100 current and former employees, many of whom were vulnerable immigrant workers and workers of color. The settlement and criminal conviction are the result of a multi-agency investigation into part of the OAG, the New York State Department of Labor (DOL), and the New York State Department of State (DOS). During this time period, Envy Nails salons misclassified their workers as independent contractors and they were not paid the required minimum wage or overtime pay.
NEW YORK — New York Attorney General Letitia James announced Wednesday that her office has recovered $300,000 in unpaid wages from workers at Envy Nails, a chain of 25 nail salons located in New York City.
Between 2015 and 2021, the salons failed to pay minimum wage to more than 100 current and former employees, many of whom were vulnerable immigrant workers and workers of color. As part of the settlement with the Attorney General’s Office (OAG), Envy Nails will pay $300,000 in restitution to salon workers, dissolve improperly registered corporate entities, and file reports with the OAG for a period of three years.
One of the 25 entities that do business as Envy Nails, Nails 181, Inc. (Nails 181), also pleaded guilty to third-degree grand theft for failing to pay sales tax between September 2014 and August 2019. As a condition of his sentence, New York County Supreme Court Judge Laurie Peterson ordered prosecutorial judgments against Nails 181 totaling more than $275,000 in favor of the state.
“Envy Nails failed to pay minimum wage, defrauding more than 100 salon workers out of their rightful earned livelihoods,” said Attorney General Letitia James. “We are holding them accountable for their crimes, and New Yorkers can be sure that we will always fight for workers’ rights. Thank you to our partners in government and defense for working together with my office to ensure that Envy Nails pays and restores the integrity of these workers.”
The settlement and criminal conviction are the result of a multi-agency investigation by the OAG, the New York State Department of Labor (DOL), and the New York State Department of State (DOS). The DOL referred the matter to the OAG in December 2018 after the DOL completed another civil action against Envy Nails.
The investigation revealed that between 2015 and 2021, 25 nail salons operating as Envy Nails in the Bronx, Manhattan and Queens systematically underpaid salon workers, in violation of New York State labor laws. During this time period, Envy Nails salons misclassified their workers as independent contractors and did not pay them the required minimum wage or overtime pay.
The investigation expanded when the New York State Department of Taxation and Finance (DTF) and the New York City Department of Finance (NYCDOF) discovered that, in addition to wage violations, Envy Nails failed to report more than $2 million. in taxable sales between September 2014 and August. 2019, resulting in the underpayment of at least $90,000 in owed sales tax, as well as penalties and interest.
“Wage theft undermines the basic rights of New York workers,” said New York State Department of Labor Commissioner Roberta Reardon. “I thank Attorney General James and Governor Hochul for their dedication to ensuring that no New Yorker is robbed of their hard-earned wages. I urge those who feel they may be a victim of wage theft to contact NYSDOL immediately.”
2023-08-17 02:14:32
#Attorney #General #James #Recovers #Unpaid #Wages #NYC #Nail #Salon #Workers
