Cost of failing to pay illegal aliens overtime: $245K
The feds have always been very clear about this: All employees are protected by the Fair Labor Standards Act (FLSA) — regardless of whether they’re citizens or not.
And this company is on the hook for a tidy sum because they didn’t adhere to those rules.
According to a Department of Labor investigation, NY-based nail salon, Cindy’s Total Care Inc., forced its employees to work more than 40 hours per week at a set rate without ever receiving overtime pay. In addition, Cindy’s failed to keep accurate records of employees pay and hours worked.
The salon appealed and argued that its staff were illegal aliens; therefore, they weren’t covered by the protections of the FLSA.
But a court said no way. The FLSA applies to “any individual” employed by the company — and “contains no exception or exclusion for persons who are not U.S. citizens or who are in this country illegally,” the court said.
It then ordered Cindy’s to pay a total of $244,309 in unpaid overtime, liquidated damages and trial costs.
- Share on
Free Training & Resources
Further Reading
The Department of Labor (DOL) has quietly issued a wage investigation policy change that could significantly reduce the financial impact of...
As a finance pro, you know that FLSA mistakes can be expensive. But even so, the sky-high cost of noncompliance found in the feds’ latest...
A North Texas company made a very expensive mistake. It misclassified workers as contractors and didn’t pay them for overtime put in....
The 2024 tables for federal income tax withholding are now available, IRS said during a recent Payroll Industry Call. The Service poste...
Private and public employers will want to reconsider imposing a vaccine mandate the next time a public health crisis occurs. A federal cour...
The IRS has started rolling out guidance on the One Big Beautiful Bill Act, which contains the no-tax-on-overtime provision and much more. ...
