NEW YORK — A federal court ruled on June 3rd that a proposed class-action suit against Manhattan nail salon Gypsophila Nail & Spa Inc. can move forward, denying a motion for summary judgment brought by the company. The company claimed in the motion that it was not covered by the Fair Labor Standards Act (FLSA) because its annual sales in 2014 were less than $500,000 and because it was not an enterprise engaged in commerce.
Requirements for Employee Coverage Under FLSA
There are two ways that employees of certain businesses or organizations are covered by FLSA. The first way is through enterprise coverage. If an enterprise has at least two employees, has an annual dollar volume of sales or business done of at least $500,000, or is a hospital, business providing medical or nursing care for residents, school, or government agency, then its employees are covered.
The second way that employees are covered is if their work regularly involves them in commerce between states. This includes employees who are involved in the production of goods that will be sent out of state or who regularly communicate with persons located in other states, handle records of business transactions done with companies or people in other states, travel on-the-job to other states, or handle maintenance and janitorial work in buildings where goods are produced for shipment outside the state. Finally, domestic service workers such as housekeepers, full-time babysitters, and cooks are normally covered by the law.
In this case, the nail salon attempted to use a previous year’s tax return to show that it did not meet the $500,000 threshold. However, the judge did not allow them to use that information because of evidentiary issues on its reliability. Additionally, the judge found that the nail salon engaged in interstate commerce as long as some of its employees wore uniforms or used items such as brooms, bags, or cleaning supplies that were moved in interstate commerce.
Alleged Nail Salon FLSA Violations
The representative plaintiff in this case claimed that the company paid her merely $70 per day to work as a nail technician and as a beautician, even though she regularly worked more than 60 hours a week. She alleged that this was less than the required minimum wage and did not account for the overtime hours she worked. The suit was filed weeks before an exposé was published in the New York Times detailing heinous wage violations prevalent in the nail salon industry in New York City.
If you or someone you know is not being paid minimum wage or overtime pay as required by FLSA, you should call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page. Our top rated team of wage lawyers will evaluate your situation to determine your best course of action. We will also determine if it is in your best interest to file a lawsuit against your employer. There are strict time limitations for filing so it is important that you call our experienced attorneys today.