PHILADELPHIA — The U.S. Department of Labor filed a federal unpaid overtime lawsuit against against a Pennsylvania spa over allegations that the business set up an illegal tip pool for employees earning less than minimum wage and failed to pay all wages and provide accurate pay statements to other workers. The Labor Department filed the claim in U.S. District Court for the Middle District of Pennsylvania against Alexander’s Salon & Spa, which has multiple locations throughout the state.
According to the complaint, the defendants violated the Fair Labor Standards Act (FLSA) by failing to comply with federal protocols on setting up the “tip pool” for spa assistants paid less than minimum wage. Under the law, tip earning workers may be paid less than minimum wage but the difference between the employee’s hourly wage and federal minimum wage must be made up for by the tips these individuals receive from other workers.
The unpaid overtime lawsuit also alleges that the defendant took tips from some workers, like hair stylists, nail technicians, and massage therapists, but not others to compensate the spa assistants properly. Furthermore, the claim states that the defendant had no system in place to ensure tipped workers earned at least the federal minimum wage of $7.25 per hour.
Additionally, many workers routinely worked more than the 40-hours per week, after which employees must receive overtime wages, but were never paid one and a half times the employee’s average hourly wage. Instead, the defendant only paid workers straight time (regular hourly wages) for all their time spent on the job.
The case is a prime example of the creative and illegal lengths many unscrupulous employers will go to avoid paying employees all due wages in order to increase the company’s bottom line. These types of practices not only violate the law but also create unnecessary financial hardships on workers putting in extra hours on the job but not earning the premium overtime wages meant to create a balance between work, wages, and time away from the job.
Spa Assistant Unpaid Overtime Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.