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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.

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


Carol Phillips at the Paul Mitchell School San Diego with Future Professionals

Paul Mitchell School San Diego

I had so much fun working with the future professionals.  They had such a great spirit to learn!!  The night students were outstanding, many almost all of them are committed to a full-time job while attendign night school 5:00-10:00 pm!  A big shout out to all the Learning Leaders by leading by example. #allergictoaverage



Carol Phillips teaching at Paul Mitchell The School Costa Mesa

Andrew Gomez Dream Foundation Adds Carol Phillips To National Speaker Roster

Press Release

Paul Mitchell The Schools

Feb 23, 2017

Beauty Industry Sales Expert,  Carol Phillips, Has Been Approved By Andrew Gomez Dream Foundation For Paul Mitchell The Schools Nationwide


Carol Phillips is an internationally-known keynote speaker, trainer, industry consultant, and successful beauty business owner. For over 25 years, she has inspired clients all over the globe to re-focus on working smarter, using their resources at hand to build traffic, sales, and customer loyalty—especially useful information in today’s challenging business climate.

Carol Phillips’ unique selling approach enabled her spa to average 55% of total revenues from retail sales alone, causing her to be named American Salon magazine’s First Retailer of the Year for her outstanding work in salon display, merchandising, retailing and staff training.

Over the years, Carol’s professional articles and information have appeared in the Wall Street Journal, Life Magazine, American Spa, Day Spa Magazine, Spa Canada, American Salon, Modern Salon, Skin Inc., DermaScope, Salon Today, Nails, Nailpro, Medesthetics, and Les Nouvelles Esthetique, just to name a few.

Her first book, In The Bag-Selling in the Salon, has become the gold standard on spa and salon sales training. Carol was on the International Spa Association team that wrote the definitive book, Retail Spa Management. Carol has produced over 25 DVD and audio spa sales training and 2 cutting-edge in-spa music programs. Now beauty professionals around the world are being trained with the first online complete sales and marketing beauty curriculum designed and produced by Carol Phillips.

Thousands of beauty pros are boosting service and retail sales after complete this training. “Robert Cromeans Salons boosted a 40% increase in Take Home after one of Carol’s Classes.” Robert Cromeans is the Global Artistic and Business Director for John Paul Mitchell Systems. 

Carol is the founder of BEAUTEESMARTS, which offers full service consulting, marketing, branding, training, product development, and sales programs. Carol and her group have done work for industry icons such as John Paul Mitchell Systems, Eminence, JCPenney Salons, SuperCuts, Mama Mio, Intraceuticals, Osmosis, Environ, and Jane Iredale.

Carol has had the pleasure of consulting and training great spas and salons like Wynn, Encore, Hilton, Waldorf Astoria, Canyon Ranch Resorts, Red Door Salons, Gaylord Resorts, Glen Ivy Hot Springs, Grove Park Inn, MGM Hotel, and Exhale Spas. Carol designed the original prototype spas for Estee Lauder’s-flagship Origins Spa and General Nutrition Centres.

Carol has worked in every phase of the beauty business, from behind the chair, the counter, the front desk, and a microphone. Her unique insight into every layer of the beauty industry helps her design a SMART (Sales, Marketing, Advertising, Retail, and Training4Success) programs that get results for beauty businesses.

** For more information on the Andrew Gomez Dream Foundation

Andrew Gomez Dream Foundation was founded to honor a successful Paul Mitchell School graduate whose struggle against mental illness ended tragically in suicide. The foundation helps cosmetology students, graduates, their families, and cosmetology-related enterprises. Funds have provided educational opportunities, hurricane relief, and support in the fights against breast cancer, domestic violence, and other destroyers of self-esteem.

For more information on Paul Mitchell The School 

** Paul Mitchell The Schools booking:

Contact Carol Phillips:

o 760.678.0022 c 760.828.5005

300 Carlsbad Village Dr. Carlsbad CA 92008

Brand Intimacy

Retail trends: excerpt from National Retail Federation by Susan Reda

Brand intimacy describes an essential relationship between a person and brand. It transcends usage, purchase and loyalty, and according to brand agency MBLM, intimate brands create enhanced business performance.

So which brands succeed at developing intimate connections? That depends on gender.

Women connect with a broad and more mature staple of brands that involve more aspects of their daily lives. Apple is the most intimate brand among female consumers, followed by DisneyAmazonWhole Foods and Toyota, according to MBLM. The top five brands for men are Harley-Davidson, Apple, Toyota, Nintendo and Lexus.

MLBM partner Rina Plapler insists that how people form bonds with brands transcends gender. “It’s important to see the types of brands women tend to connect with and how age and income influence brand choices. … [It] helps marketers better promote their products and services and form deep brand attachments.”

What else did they learn? Age also plays a role in determining brand preferences. Among female Millennials ages 18 to 34, the top five are Apple, Amazon, Sephora, Target and Whole Foods; 18- to 34-year-old men pick Nintendo, Samsung, PlayStation, Xbox and YouTube as their top five.

Women earning $34,000 to $49,000 are most connected with health and beauty brands, with L’Oréal, Revlon and Dove in their top five. Among those with incomes of $50,000 to $75,000, the list leaders include Apple, Starbucks, Olay, Coca-Cola and Netflix. For those earning $75,000 to $150,000, Apple, Sephora, Amazon, Target and Clinique top the list.


Whose The Focus

Dear Product Vendors…

You might want to train your sales reps to be customer focused vs “I” focused. This was in my email today from our “Customer Service Representative”  The email had 118 words and 10 times she used the word “I”. There was no personalization to email. BTW this person has been our rep for all of 2 months yet this only 2nd email ever received. Yep, no phone call(s) to introduce themselves either. Thinking this company needs my BeauteeSmarts Sales Rep Sales Class ASAP (wink)

Actual copy of email sent to me by sales rep

Sales Rep Sloppy Email

Sales Rep Sloppy Email