FOR IMMEDIATE RELEASE
IR #2008-17
March 24, 2008

CONTACT:
Dean Fryer
(415) 703-5050


Labor Commissioner Nails Salons for Illegally Classifying Employees

SacramentoMarch 21, 2008— Officials with the State Division of Labor Standards Enforcement (Labor Commissioner’s Office) issued 52 citations totaling $156,000 in fines to Northern California spas and beauty salons in a recent two-day enforcement sweep.

Six investigators conducted the sweeps of 46 businesses that included nail salons, day spas and beauty salons in cities located in Butte, Humboldt, Placer, Shasta and Sacramento counties. The enforcement action uncovered serious violations including failure to carry workers’ compensation insurance or provide itemized deductions. A summary, by county, of the businesses cited is as follows:

County

Businesses Cited

Amount Assessed

Butte

7

$20,000

Humboldt

4

53,500

Placer

3

16,500

Sacramento

16

61,000

Shasta

4

5,000

“Many of the salons and spas cited, illegally classified their employees as independent contractors,” said California Labor Commissioner Angela Bradstreet. “Simply calling someone an independent contractor, or even having them sign an agreement to that effect, does not make them independent. We need to look at many factors, including the actual work they are doing.”

The DLSE adjudicates wage claims, investigates discrimination and public works complaints, and enforces state labor law and Industrial Welfare Commission wage orders. To learn more about the functions of the California Labor Commissioner, visit our web site at www.dir.ca.gov/dlse. Employees that have work-related questions or complaints can call the California Workers’ Information Hotline at 1-866-924-9757.

# # #