Labor Commissioner Cites Nail Salon $1.2 Million for Misclassification and Wage Theft of 36 Workers

 

OAKLAND, Calif., July 30, 2018 /PRNewswire/ — The Labor Commissioner’s Office issued more than $1.2 million in wage theft citations to a Temecula nail salon for misclassifying and failing to properly pay 36 workers. An investigation found that the workers at Young’s Nail Spa were not paid an hourly rate and not paid overtime despite working up to 50 hours a week.

“Using misclassification as a business model not only denies workers of their rightful pay, but also gives the employer an unfair advantage over law-abiding businesses,” said Labor Commissioner Julie A. Su. “California law is clear that if employers pay less than the minimum wage, when they are caught they will be responsible for paying not just the wages owed, but an equivalent amount in liquidated damages plus interest.”

The Labor Commissioner’s Office launched its investigation when the Labor and Workforce Development Agency referred the case following notification of a complaint filed through the Private Attorneys General Act. Investigators audited the business records over a 40-month period and determined that 36 workers employed at the salon were paid for each salon service performed instead of the total hours worked. Shifts averaged 9.5 to 10 hours per day but workers were not properly paid for overtime, nor provided proper meal and rest breaks. Young’s Nail Spa also failed to carry valid workers’ compensation insurance coverage during the last three years.

The $1,242,227 citation amount includes $670,040 payable to workers and $572,187 in civil penalties. Of the total due to workers, $126,702 is for minimum wage violations plus $17,375 in interest, $144,076 for liquidated damages, $118,825 for failure to pay overtime, $92,492 for not providing final paychecks as required by law, $87,155 for improperly paid rest periods, $65,312 for not providing proper itemized wage statements, and $18,103 for meal period violations.

The civil penalties include $207,887 for failure to maintain valid workers’ compensation insurance, $160,000 for misclassifying workers as independent contractors, $104,000 for not providing proper wage statements and $100,300 for penalties associated with the wage violations.

Enforcement investigations typically include a payroll audit of the previous three years to determine minimum wage, overtime and other labor law violations, and any payments owed and penalties due are calculated. Civil penalties collected are transferred to the State’s General Fund as required by law.

Required workplace postings on wages, hours and working conditions must be posted in an area frequented by employees where it may be easily read during the workday. Nail salons have a specific posting required for all Barbering and Cosmetology Licensees.

Worker misclassification is the practice of knowingly misclassifying an employee as an independent contractor. It deprives employees of minimum wage and overtime protections, as well as workers’ compensation coverage if injured on the job, and creates an unfair playing field for responsible employers who honor their lawful obligations to their employees. The Labor Commissioner’s Office enforces laws prohibiting the willful misclassification of workers.

When workers are paid less than minimum wage, they are entitled to liquidated damages  that equal the amount of underpaid wages plus interest. If a worker quits, final wages are due within 72 hours of the notice. Waiting time penalties are imposed when the employer intentionally fails to pay all wages due to the employee at the time of separation. This penalty is calculated by taking the employee’s daily rate of pay and multiplying it by the number of days the employee was not paid, up to a maximum of 30 days.

The Division of Labor Standards Enforcement, or the Labor Commissioner’s Office, is the division within the Department of Industrial Relations (DIR) with wide-ranging enforcement responsibilities including adjudicating wage claims, inspecting workplaces for wage and hour violations, investigating retaliation complaints and educating the public on labor laws.

In 2014, Labor Commissioner Su launched the Wage Theft is a Crime multilingual public awareness campaign. The campaign defines wage theft and informs workers of their rights and the resources available to them to recover unpaid wages or report other labor law violations.

Employees with work-related questions or complaints may contact DIR’s Call Center in English or Spanish at 844-LABOR-DIR (844-522-6734).

Members of the press may contact Erika Monterroza or Paola Laverde (510) 286-1161, and are encouraged to subscribe to get email alerts on DIR’s press releases or other departmental updates.

The California Department of Industrial Relations, established in 1927, protects and improves the health, safety, and economic well-being of over 18 million wage earners, and helps their employers comply with state labor laws. DIR is housed within the Labor & Workforce Development Agency. For general inquiries, contact DIR’s Call Center at 844-LABOR-DIR (844-522-6734) for help in locating the appropriate division or program in our department.

https://www.facebook.com/CaliforniaDIR   

https://twitter.com/CA_DIR 

http://www.youtube.com/CaliforniaDIR  

http://www.dir.ca.gov/email/listsub.asp?choice=1

SOURCE California Department of Industrial Relations; California Labor Commissioner’s Office

 

 

 

 

https://www.prnewswire.com/news-releases/labor-commissioner-cites-nail-salon-1-2-million-for-misclassification-and-wage-theft-of-36-workers-300688627.html

Carol Phillips

Retail Diva Will Help You Drive Sales at Face & Body Northern California

Retail sales can be a big revenue generator for a spa, but “selling” does not come easy to all spa professi­onals. Carol Phillips, keynote speaker on day three of the Face & Body Spa Conference and Expo Northern California, will teach attendees how to move past “I’m an artist, I don’t sell” to building the confidence to boost sales.

“We are in the business of beauty. While it is about doing a great facial, soothing massage or speedy waxing, it is still a business that offers these services and products,” said Phillips. “Yet many therapists and owners forget that you have to sell something and that it’s OK to make a profit.”

Phillips, who is known as “The Diva of Retail,” says businesses can underperform by 20% on average. During her keynote speech, Phillips will discuss several tips that everyone can put to work right away to increase sales.

“Face & Body always draws beauty professional who love to learn! One thing that I have experienced over the years as a keynote speaker is that the spa peeps that attend Face & Body are serious about their craft and their business,” Phillips said. “For the first time, Face & Body is offering attendees a keynote on Monday morning and I am thrilled to ‘take care of business’ with everyone there.”

The CEO and founder of BeauteeSmarts, Phillips offers full-service consulting, marketing, branding, service training and sales programs. She has trained and consulted for tops spas such as Miraval, Hilton, Waldorf Astoria, Encore, Wynn, Canyon Ranch Resorts, Sea Island and Elizabeth Arden Red Door Spas. Her unique perspective helps drive sales at every link in the beauty business—from product vendors, distributors, sales represen­tatives, chains, five-star resorts, day spas, medical spas, salons, solopreneurs and schools.

– See more at: http://www.skininc.com/spabusiness/leaders/people/Retail-Diva-will-help-you-drive-sales-at-Face–Body-Northern-California-420402103.html#sthash.MRc6XMnH.dpuf

Must See New Movie About The Inspirational Life Of John Paul DeJoria

 
Original Post by my buddy Winn Claybaugh on his FaceBook Page

The Good Fortune documentary tells the inspirational life story of Paul Mitchell CEO, John Paul DeJoria. Learn how he has used business to make the world a better place while becoming one of America’s most celebrated entrepreneurs. The film is coming to select theaters this month. We can’t wait to experience it and encourage you to gather your friends and family to see it, too! #PMTS #GoodFortuneMovie

Watch the trailer here: https://www.youtube.com/watch?v=6oxT2rJXBaM

Find out if Good Fortune is coming to a city near you: http://bit.ly/2spE7zS

Carol Note:  Go see this movie.  I don’t care what brand of beauty products you have in your salon, we all need a mega dose of entrepreneurial spirit.  XOXO Carol

 

 

Sonoma Mission Inn to pay $1 million in spa-worker case

as reported by:  PAUL PAYNE THE PRESS DEMOCRAT

Sonoma Mission Inn is expected to pay nearly $1 million to settle a class-action lawsuit with former spa employees.

A tentative ruling Tuesday from Judge Rene Chouteau gave final approval to the 103-member class, each expected to receive an average of $6,200. Chouteau also approved a $331,000 payout to the San Francisco-based lawyers, finding the amount was high for Sonoma County but justified considering no local lawyers would take the case without a retainer.

The Willow Stream Spa workers claimed unfair labor conditions spanning 2012 to 2015. Some reported being scheduled to provide treatments without adequate breaks. Others said they received no overtime when working more than 40 hours per week.

 

http://www.pressdemocrat.com/business/6951510-181/sonoma-mission-inn-to-pay#

PC: John Burgess/ The Press Democrat

Jeweler Tiffany posts steepest sales drop since financial crisis

Carols’  note…   sales plunged 10% in Q1. 25 % of sales is in their silver category which is priced under $500. Has the little blue box lost it’s sparkle???

 

________

repost from Rueters. Business Wed May 25, 2016 5:45pm EDT

 

Tiffany & Co (TIF.N) reported its biggest drop in quarterly sales since the peak of the global financial crisis as a strong dollar discouraged tourists from buying its high-end jewelry and eroded revenue from markets outside the United States.

The company’s shares fell as much as 3 percent in morning trading on Wednesday.

In the Americas region, Tiffany’s sales at stores open more than a year plunged 10 percent in the first quarter. Analysts on average had expected a 9.1 percent decline, according to research firm Consensus Metrix.

“Decline in customer share is evident among most shopper segments, including more affluent households,” research firm Conlumino’s Chief Executive Neil Saunders said.

“It is especially pronounced among affluent younger shoppers where the brand is seen as representing ‘old world luxury’.”

Tiffany, which opened its first store on Sept. 14, 1837 in New York and earned a total of $4.98 on the first day, got nearly half of its $4.10 billion sales last year from the Americas region.

Chief Executive Frederic Cumenal said the company also faced pressure from lower foreign tourist spending in Europe and Asia, particularly in Hong Kong.

“We continue to assume that results in Hong Kong will be pressured throughout the year,” said Mark Aaron, vice president of investor relations.

Tiffany, whose one-of-a-kind pieces are a regular feature on Hollywood red carpets, has said that it is being hurt by a decline in Chinese tourists to Hong Kong, an important market.

Same-store sales in the Asia Pacific region, its second biggest market, slumped 15 percent.

Japan was the only bright spot in the quarter, with same-store sales rising 12 percent, partly due to the “dramatic strengthening of the yen” against the dollar.

WEAK FORECAST

Tiffany forecast a mid-single digit percentage fall in its full-year profit. The company had earlier said it expected earnings to stay flat or fall by up to mid-single digit in percentage terms.

Net income declined 16.6 percent to $87.5 million, or 69 cents per share, in the quarter ended April 30. Tiffany expects current-quarter profit to also “decline by a similar rate”.

Net sales dropped 7.4 percent to $891.3 million – the biggest fall since mid-2009 – missing the average analyst estimate of $915.1 million, according to Thomson Reuters I/B/E/S.

Tiffany’s shares were down 1.4 percent at $63.96. Up to Tuesday’s close, the stock had lost more than a quarter of its value in the past 12 months.

(Reporting by Subrat Patnaik in Bengaluru; Editing by Kirti Pandey)

Unilever bulks up on prestige with Dermalogica

Unilever continued its march into high end personal care market on Wednesday with the acquisition of Dermalogica, a Los Angeles-based skin care brand.

Terms of the deal were not disclosed. But with sales of $240m last year, Dermalogica will be no more than a bolt-on acquisition for Unilever, which had sales of €48.4bn last year.

The maker of Dove soap, Flora margarine and Persil washing powder has been looking inject more growth into its portfolio by increasing sales of personal care goods to two-thirds of the total, up from 37 per cent currently.

As part of this effort, the Anglo-Dutch company acquired REN Skincare, a niche brand that specialises in natural ingredients, earlier in April. It also struck a deal to buy independent prestige brand, Kate Somerville Skincare last month.

Founded in 1986, Dermalogica has grown to become the leading skincare brand used in professional salons and spas.

Paul Polman, Unilever CEO, said in a statement:

Dermalogica enjoys an outstanding reputation and incredible awareness among skin care professionals and consumers alike, and has a clear positioning as a superior skin health brand that perfectly complements the rest of our Prestige offering.

Sign of the Times by Carol Phillips

Want to create attention in your retail zone without remodeling? The cheapest and most effective way to generate additional retail sales is to use in-salon signs. Good signs will attract attention to your products, increase sales on the spot, educate the client by making it easier to select products. Signs will give your salon the competitive edge. You can modify selection, pricing and features instantly.

5 Key Tips for Producing Signs That Sell

1. Handmade Signs vs. Machine Made Signs
Salon signs should always be machine made. Hand printed signs look elementary to the consumer. My only exception is when I design a bridal display and use calligraphy to simulate wedding invitations. You can produce machine made signs from several sources.

If you are computer friendly, you already have access to professional looking signs. Some of the new publishing programs make signing a snap. If you’re not artistically inclined even on a computer, don’t fret. Look in your local yellow pages under desk top publishing. There should be an abundance of professionals who can design your signs. Some of the quick copy places have added desk top publishing in their stores.

Check your local college’s computer graphics department for someone to help produce your signs. College kids always need extra money. I have recently used a franchise sign company that makes instant signs and charges super prices.

2. Size It Up
The ideal sign should be no smaller than 5 1/2″ by 7″. As those 76 million Baby Boomers age the eyesight has a tendency to weaken. Avoid small shelf clip signs, they can be too small for the clients to read. Blow-up your message to poster size and place it at the reception desk and service area.

3. lnfo Crazy
When you are making a sign include 4 key items: Name of brand – Especially if the product line you are featuring has been spending big bucks on national advertising. Play off the name of the company with their advertising.

Price – Put the price of the item featured on the sign. If the item will save the client money by buying from your salon, tell them. Put you competitor’s price on the sign. Store X is charging $5.95. Hot Locks has the same item for $5.25.

Savings– Highlight in the sign any savings the shopper will benefit from: 10% Off or Save $1.25. I am a big fan of discounting products over services. Take advantage of your distributor’s monthly specials to give your clients’ savings.

Feature Plus Benefit – On your sign tell the client why this particular item would be beneficial for them by highlighting the unique feature. Avoid the trap of “it’s a great shampoo,” the client needs more information to make a decision. Let your sign tell the story. Look in your product guide for a strong statement tagging the feature/benefit of the product.

4. Getting Framed
Complete the image by finishing off the sign with the appropriate frame. Display it in the salon in a Lucite holder, a laminated frame or a matte frame for extra attention.

5. Financial Times
Good signs do pay off. One market study showed that scores featuring machine made signs sold over 200% more merchandise compared to stores with no signs. Signing in the salon is a 24 hour a day duty. Signs will talk about your product and can be thought of as a way to add sales staff at a fraction of long-term cost.

For more information on Carol’s books,  seminars, please contact her: 760.429.7772

Mama Mio New Online Learning Lounge

NEW Mama Mio Online Learning Lounge the best in 24/7 global beauty training and education

About Mama Mio

We create high performance face, bodycare and spa treatments to give you beautifully FIT skin. It is our Mama Mio mission to help women feel more confident in their skin by helping them achieve fit skin for life.

This November, Mama Mio Skincare is launching the Mama Mio Online Learning Lounge, a comprehensive online training program that includes our entire curriculum, available online. Mama Mio collaborated with BeauteeSmarts, spa industry expert Carol Phillips’ training and education platform, to create a program to service spa owners, directors, technicians and retail staff that provides unparalleled education on demand.

Whether ongoing inspiration, sales tips, staff turnover or scheduling challenges, beauty businesses all face the same daily need: How do we best train and motivate our staff? “Mama Mio’s Online Learning Lounge is a turnkey solution to this challenge in the form of the best in hands on training and staff development,” says Mama Mio co-founder Jill Dunk.

According to Carol Phillips, “In order to make the cash register ring, every staff member must know how to confidently and comfortably talk about the brands on the shelf. Mama Mio is the first spa brand to offer 24/7 education, especially for product knowledge, with a built in staff tracking and testing system. The old days of vendors coming in and cramming into the back room to pass around a bottle of lotion and call it a product knowledge class… are over. Now every staff member can connect to the best in global beauty education and we are proud to connect Mama Mio with their amazing partners.”

Key Features of the Online Learning Lounge

  • Step by Step Protocols for: 4 Bootcamp Spa Treatments, 5 Mama’s Touch Maternity Spa Treatments
  • Pregnancy Basics featuring 2 core classes to increase therapist knowledge and confidence while service the pregnant guest
  • Confident Selling Skills
  • Downloadable treatment protocols for each lesson
  • Online staff testing and tracking
  • Complete Product knowledge library

 

Key Benefits

  • Flexibility – Staff can learn anywhere they have access to the internet: at home, at a spa’straining center, during downtime at work
  • Flexibility – No more scheduling hassles
  • Efficiency – New hires can be trained quickly and consistently. No waiting for the nextvendor training
  • Comprehensive – The Online Learning Lounge can be used by the entire spa staff from therapist  to front desk staff to retail specialists

 

For sales inquiries, please contact Jill Dunk · 888 962 6264 jill@mamamio.com  www.mamamio.com