Velazquez Calls for Labor Probe into Nail Salon Wage Abuse

Washington, DC –Rep. Nydia M. Velázquez (D-NY) today wrote the Department of Labor regarding wage abuses in the nail salon industry. The text of the letter is below.

Administrator David Weil
Wage and Hour Division
U.S. Department of Labor
Frances Perkins Building
200 Constitution Avenue, NW
Washington, DC 20210

Dear Administrator Weil:

I am writing you in regard to recent wage abuses uncovered in the nail salon industry in New York City and surrounding areas. These allegations, as reported by the New York Times on May 7, 2015, demonstrate clear violations of the Fair Labor Standards Act (FLSA). As a result, I request that the Department of Labor examine these allegations and impose remedies to ensure that workers in this industry are paid according to applicable federal law.

Several compensation practices are particularly concerning and are depriving manicurists and associated workers from fair pay under the FLSA. As “tipped workers,” these employees are entitled to supplemental wages if “tips” do not equal or exceed the minimum wage. Evidence suggests that employers have systemically failed to pay such supplemental wages as required under the FLSA. This has led to cases in which workers are being paid as little as $3 per hour, well below the federal minimum wage.

In addition, it is apparent that workers in this industry are regularly working more than 40 hours per week and not being remunerated at federally-required overtime rates. In such instances, workers should be paid at a rate equal to at least 150 percent of minimum wage. Reports indicate that failure to pay overtime is a widespread practice among employers in the nail salon industry. Such occurrences indicate yet another violation of the FLSA.

Taken together, these allegations present a troubling pattern of wage and compensation abuses in an industry dominated largely by immigrant workers. Such workers often face language barriers and a lack of knowledge about their legal rights, making them more easily exploited by unscrupulous employers. For these reasons, I am requesting that you take immediate action to examine these claims and assist these workers in receiving fair pay under the FLSA.

Thank you for your attention to this matter and for your efforts on behalf of American’s workers.

Sincerely,

Nydia M. Velázquez
Member of Congress

cc: The Honorable Thomas Perez, United State Secretary of Labor
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