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.
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
Two jurisdictions face potential 2026 Federal Unemployment Tax Act (FUTA) credit reductions. If you operate in either one, your FUTA tax ra...
A federal appeals court could weaken a 50-year-old muzzle on companies and individuals that settle securities fraud allegations. And there&...
About a third of companies plan to follow Amazon’s lead and issue a return-to-office mandate that requires workers to be in the office fi...
After more than a year, the IRS has made changes to Form 1099-MISC, Miscellaneous Information, and Form 1099-NEC, Nonemployee Compensation....
Picture this: A salesperson establishes a long-term relationship with a customer who places a recurring order every month. And the salesper...
We’re only halfway through winter, so Jack Frost isn’t quite finished with us yet. In other words, now’s a good time to review...