Nail Salon Sweeps in New York Reveal Abuses and Regulatory Challenges

Mar 01, 2016 · 125 comments
peterhenry (suburban, new york)
"Several said their employees would rather be paid in cash, under the table, because they were not authorized to work in this country."

Well, you know, then it's illegal to hire them. And illegal to not pay disability and Social Security for these employees. And illegal to not withhold and pay state and Federal income taxes on their salaries. And illegal not to meet state and Federal wage-hour standards.

And you're complaining that the government is picking on you ?
Fed Up (USA)
Within the past 5 years SIX nail salons have opened up within a 1 1/2 mile radius from my home. However, when I go to the neighborhood shops and library I rarely see women with perfectly polished and manicured nails. What's with that? Perhaps I should start looking at mens nails!
AmateurHistorian (NYC)
Seems like the elitists at NYTimes are trying to uplift poor people again and the result will be another crash to reality.

Nail salon are not cheap to run because the rent is tremendous and service slow. The workers cannot be paid more because the work is close to unskilled and the work days are long. The government can try to enforce minimum wage laws but the end result is more salon and worker will turn underground. We have an underground economy often for legit good/services because government regulation forced them into the shadows.

The idea of minimum wage is good but certain jobs simply doesn't make sense to be covered by minimum wage laws because the work is too unskilled. Does it makes sense a salon worker that cannot speak a lick of English makes similar money to a college graduated bank teller or Geek Squad?
OzarkOrc (Rogers, Arkansas)
This is juust a small example of the "Race to the Bottom" affecting all American workers.

Sad that a proper minimum wage job would represent an improvement for anyone willing to work in this country.

Even sadder, many people just don't care. They don't understand their own stagnant wages directly reflect this, our bargain culture is at the cost of workers at all levels.
sf (sf)
The gatekeepers of the comment section did not publish my last comment here. Maybe this time it will get through.
My sentiments are that as awful or illegal the nail salons are I am more concerned about the 'massage parlors/spas'. Many of the immigrant women that work at these types of establishments are human trafficked sex slaves, indebted to their smugglers/johns. Some of them are underage. This needs to be seriously addressed. The Craigslist/BackPage ads are full of young Asian (and other) girls being peddled like fast food.
AmateurHistorian (NYC)
My suspicion is those ads are scams and you will be robbed or honey trapped by police. I doubt law enforcement are that stupid to not know those ads are illegal.
Jmilbrook (Millbrook, new york)
So about 85 percent of salons fail to maintain adequate payroll records. In my experience the only way to maintain adequate payroll records is to pay a lot of money to a payroll company. The payroll laws are way to complicated for a small business owner to maintain. In fact I would say that no immigrant business owner, not one, can keep adequate records without help. I wish the myriad rules and regulations were greatly simplified.
NYHUGUENOT (Charlotte, NC)
I was a small business owner for 30 years. I computed and filed all the taxes for my employee's withholding and income taxes and paid all the monthly and quarterly taxes the business owed quarterly.
The paperwork involved in running a business is part of the requirements due us as business owners. If you can't or won't then you hire it out.
I see no justification for non-filing on these people's part and there is no excuse for not collecting income taxes on these people except to commit fraud.
Jmilbrook (Millbrook, new york)
Nyhuguenot. I do respect your diligence in following all the rules and I agree with you that everyone should be paid on books. But in my experience, it is very difficult and time consuming to keep your own payroll (and not farm it out). The vast majority of people simply can't do it because of the voluminous complicated laws and regulations. I suspect you may say that perhaps those people who can't do it should not be in their own business. But I would like to see it easier for people to be self employed - it's good for all of us
peterhenry (suburban, new york)
Really. Take your computer, buy Quickbooks Payroll, or one of many other such packages. Put in names, rate, hours. Download tax rates. Press ENTER.
Jammer (mpls)
Great work. These owners must gain the ability to follow the law or be shut down. This includes managing the books, paying legal wages and taxes.
AmateurHistorian (NYC)
And those taxes will be used to fund wars. Darn, nail salon workers directly contributes to make this country exceptional.

I rather the cheapest and simplest good/services do not charge tax so the people making small amount of money can keep more and government don't have to spend $200 to recover $11.23 in back taxes.
Mary (Atlanta, GA)
Do the inspectors ever ask about tips? Probably not, and I doubt workers would provide an honest answer. Bottom line is that salons, and a multitude of businesses, operate under the tax radar. I don't understand how the US allows this; we've thousands of IRS agents, what are they doing?

I suspect, as others here do, that many of the workers are illegal immigrants/undocumented workers. They come from countries where cheating on taxes is a national sport. About half of the people in this country pay Federal taxes. Why? So that those that choose not to pay taxes don't have to; most get tax credits because they under report their income - meaning even more tax payer money goes into their pockets. It's a scam, and it would appear the NYTimes and US government doesn't care.

As far as the job itself? Yes, hours are long, but the work is not difficult. Exposure to chemicals is high; can't be good for one's health. However, what is the alternative for these workers? It's the owners that need to answer to the labor laws they flaunt, not the workers.
Anne Russell (Wrightsville Beach NC)
Women are crazy to throw away their hard-earned money on nail salons, paying for abnormally-decorated talons which defy usefulness.
AmateurHistorian (NYC)
Maybe you found a guy that doesn't care about appearance but I for one like people that at least show some care about their appearances. My believes is fancy nails and those extra long ones are about expressing individuality while neatly trimmed and polished nails are for show to ones spouse. Say what you will about appearing attractive to ones spouse.
Unhappy camper (Planet Earth)
Pedicures, especially, can be a boon to the elderly. Hip or knee replacements, or arthritic conditions, can make pedicures difficult to do as self care. My mother appreciated the opportunity to have her toenails cut and her feet massaged. (She skipped the nail polish.) She paid the going rate and tipped well, frequenting the same salon and the same person.
Concerned Citizen (Anywheresville)
Absolutely seniors need help with nail care. Long nails can cause pain, ill-fitting shoes, even cuts and infections. It is nearly impossible to safely trim your toenails if you have cataracts, any vision issues, arthritis in your hands or feet, etc. Diabetics are especially at SEVERE risk -- infections that could lead to amputations.

BUT....seniors get Medicare and Medicare pays for a monthly toenail trim at a podiatrists office. Much safer and much cleaner.

I would NOT trust a beauty salon or nail parlor for this -- PLEASE tell your mom to use the podiatrist! Salons that pay $4 an hour or exploit illegal aliens will not be rigorous about cleanliness or sterilizing instruments or always using new (or autoclaved) instruments!

I got a spa pedicure some years ago, in a fancy upscale salon (Groupon, lol) and an overly aggressive technician (who was white American) used clippers on my cuticles, cutting one on my big toe so badly it bled and took weeks to heal. Thankfully, I am not elderly and not diabetic, and I did heal without infection -- but OMG, if that were my elderly mother inlaw or aunt (in their 80s), it could have led to disaster. PLEASE USE A REAL PODIATRIST for this.
tme portland (oregon)
So it is OK?
NVFisherman (Las Vegas,Nevada)
These are all cash businesse and who really knows what is going on. There are not enough investigators available to audit every nail salon. Maybe the best thing is to force mandatory courses for every owner of a nail salon.
Cuong Vinh (OC, California)
The relationship betwêen nail salon owner and workers is much more complicated than just observing the labor laws, the minimum pay etc...
Nobody, I said nobody can live with 30 to 50 bucks a day in New York. Workers and owners in the nail industry get paid in several ways. They mainly operate as an agrêement betwêen 2 people to work on commission basis and the worker earns also the tip from patrons. So, just go around and lơok at those cars that nail ladies are driving, from Acura to Lexus, to BMW and Mercedes. I used to run nail shop. Everybody cheats the government, not reporting everything they made.....I just like to sêe someone do some research and statistics on cars and houses that nail people own....it will be very surprising.
Concerned Citizen (Anywheresville)
Although in no way I am endorsing exploitation or illegal immigration -- the fact is, these nail technicians are not living off $4 an hour. They get tips, which are almost certainly more than that -- another $5-$10 an hour. Also off the books and untaxed.

It is a similar job to waitressing, where most of your income is in tips. Waiters and waitresses only get half the minimum wage in most areas, and depend on tips for the majority of (untaxed, unreported) income.
Unhappy camper (Planet Earth)
Those 'nail ladies' you're talking about would be the shop owners, not the women who do the actual work.
Janis (Ridgewood, NJ)
Another "cash business" and another reason why there should be a flat tax.
David Taylor (norcal)
How does a flat tax address this? Do you mean funding the government from sales tax? It would be over 20%.
Harry (Atlanta)
A flat tax won't fix tax evasion. If you underreport your cash income, the IRS can't tax what they don't know about,
Gert (New York)
I wonder how many of the women who worked at the salons that closed have, since receiving their pink slips, been able to find $9-an-hour jobs. Does anyone think that those women are better off now?
JH (Mountain View)
Excellent follow up to the original article and I commend the NYT for doing this sort of investigative journalism, no matter how big or small it might seem. There is an unequal balance of power between the employees, many of whom have limited to no understanding on English compared to the salon owners. This is why labor laws and minimum wage laws were created to protect one party (the employer, mostly) from exerting their power in improper ways.

If the abuses are common enough as this article describes, we need new policies that make sure the nail salon owners have more training about the labor laws. It seems pretty clear that the overtime rules are complex based on the difference between hourly and day wage that was explained here. This doesn't excuse what's happening to people but it's something we have to understand to solve it.

For this reason, to really fix this problem it's going to take training and more outreach, not just fines and enforcement. A mandatory training process for the salon owners would be an excellent idea.
Aurther Phleger (Sparks, NV)
The undelrlying problem here is the mass numbers of unskilled illegal immigrants in this country driving down wages for low skill jobs like foodservice, landscaping, cleaning, childcare etc. If these ladies were here, salon owners would have to pay more and a manicure would be priced as the luxury that it is. US citizenship used to be like a union card. Foreign labor could compete through imports but not on US soil. Lax immigration enforcement has allowed in what are in effect millions of scabs. It's ironic how liberals love labor unions but then seek to destroy the bargaining power of the largest union we have by allowing in foreign labor.
Shoshanna (Southern USA)
A great description of the over-regulation of business. Just stay out of it and let them operate. Trump will end this kind of nonsense
Alison C (NJ)
I wonder if you would feel the same Shoshanna, if the labor laws go away and your boss or your children's bosses decide to pay you/them less than what is guaranteed by law. Would you still feel that was fair? What if you had no other choice but to work for $3 because that is all that was around? Would that still make it fair? Get a grip and look beyond your mirror.
Troglotia DuBoeuf (provincial America)
The New York Times defends the sacrosanct right of two consenting adults to have gay sex, yet argues that a horrendous crime has occurred when two consenting adults enter into a labor contract for less than the minimum wage.

The obvious and just solution to such egregious conduct is to strictly enforce the labor laws so that New York nail salons hiring immigrant women go bust. That way desperate immigrant employees can earn $0 and go to bed hungry in belly yet warm at heart, knowing that the purity of the minimum wage remains unsullied.
Andy (New York, NY)
"consenting adults entering a labor contract." sounds like the salon owners and the manicurist are on equal footing in your view. these are at risk individuals who should be protected by the laws of the land. the minimum wage paid with social security and taxes taken out of their pay check. qualification for disability and unemployment all while the owner rightfully keeps correct account of his/her business so that taxes are fairly paid. if THAT puts them out of business then they aren't charging enough or have a poor business plan to begin with OR maybe just maybe they are exploiting their workers for their singular financial benefit.
Lilly VonSctupp (California)
Are there no prisons? No workhouses?
AmateurHistorian (NYC)
Salon owner and workers are on equal footing. We often confuse boss-employee relationship at work with overall relationship. The boss can order the employee around to do work pertaining to the employment but the employee can walk out and simply not work for the employer if he/she doesn't like the job.
dawndbike (Alexandria, VA)
So many times I see one Asian man who dominates the Asian women. No one speaks English and I have always thought there was something illegal about the shop. False certifications perhaps and sweat labor seem the norm. The women hardly look up and learn the job from each other. Yes, the owner should be made to pay back wages for a slum business that now revealed will hurt the young girls who work there.
AmateurHistorian (NYC)
You found a salon with a guy in it? I have in face never saw a guy in a nail salon before.
Lynn C. (<br/>)
Like the Peter Liang case, the Asian community (business owners in this case) is again crying foul when they are being held accountable under the law. As an Asian American this disappoints me to no end. It's no secret that Asian business owners are among the most abusive employers, mainly because they can get away with exploiting a largely undocumented immigrant labor force. Rather than clean up their act, these Asian businesses enlist politicians and lawyers to portray them as victims of discrimination. Cry me a river.
AR (Wichita, Kansas)
I am no supporter of salon owners here, or of Peter LiNg But to bring Peter Liang case was a low blow. Admit it, if Liang were a white police officer he would not have been charged, let alone convicted.
AmateurHistorian (NYC)
@Lynn C.
Asian communities are also know to produce self-hating Asian that wish they were white. They think the more they bash other Asians, the more white peoples would like them for their non-Asian-ness.

Peter Liang and the salon owner are being assaulted by media peddling yellow peril aided by self-hating Asians.
Mineola (Rhode Island)
I thought every employer is required to have huge posters for employees that state their rights, minimum wage etc and who to contact if they are not receiving it. Or is that not a New York State law. It seems that having that posted would be the most obvious first step and also for clients to know the employees have that information. But then again, I guess they'd need it in Vietnamese/Korean etc.
Jonathan (Brooklyn)
Mineola - I've seen the poster in English and it looks like a textual Jackson Pollock. I'd guess that the Chamber of Commerce dictated the poster design just as the tobacco lobby dictated the cigarette pack warning design.
na (here)
I am so tired of NYT's apologia for illegal workers, their extractive bosses and their self-indulgent cluelss patrons.

If the workers or the employers were Americans, the NYT would be puffed up in outrage - as it should. But, the standards are different for non-Americans. Ironic that in their own country, Americans cannot get away with actions that non-Americans can get away with.

All those of us - taxpayers - who do not use these nail salons are subsidizing the workers, the employers and the patrons. Very disturbing.
Fernando (Florida)
"I want to follow American law and rules to be good citizen,” Ms. Yang said. “But something we don’t know, they have to let people know first.”

How are these people even allowed to open a business without an understanding of american business law? I thought New York was a city with stirct regulations and protections for workers.

The article also mentions that employers said their employees prefer to payed illegaly because they cannot work legally in this country. This is what happens when illegal immigrants are protected by the left in this country, and this is coming from a democrat.
Jonathan (Brooklyn)
Fernando the 'democrat' - your point is based on having accepted two allegations by salon owners as truth.
AJ (nY. ny)
You should post a list of the salons that do meet all requirements and aren't treating their employees poorly. Then perhaps those seeking nail services would flock to those - eventually pushing the salons breaking rules out of business.
whatever, NY (New York)
Avoid the salons that you think are not right. Sullen employees, dity work areas.

New Yorkers are suppossed yo be street smart.
tbulen (New York City, NY)
Capitalism at its finest!
DSS (Ottawa)
10-1 odds these salon owners vote republican. Making America great again means making these kinds of business practices legal.
Joe Paper (Pottstown, Pa.)
In New York City???

I don't think so.
Andrew (Atlanta, GA)
they can't vote because they aren't citizens
Hard Choices (connecticut)
And none of the employees are reporting their earnings, or paying income tax. And they're all on Medicaid, and getting Care for Kids to pay their mothers to babysit their kids.
David Taylor (norcal)
Said mothers will then stay here after their visitor visas expire and collect a form of social security for the indigent.

It would be wise for the Democrats to get this under control before programs like Social Security lose their support.
anycomment (N J)
Employees earning the wages described would owe some FICA tax but would likely owe no other tax and may get a refundable credit.
tbulen (New York City, NY)
If you wouldn't trade place with them for that deal, then get off your high horse. Your taxes can go to failed DOD fighter jet programs, while mine can go to women like these.
LB (Florida)
This is what happens when illegal immigration is encouraged, as it most certainly is in New York. What do you expect?
Andrew (Atlanta, GA)
China already has a wall.
Trudy Lou (Brooklyn)
Did any of these reviews look at how many of the manicurists can legally work in the US? If they are working illegally, the bosses will be free to exploit and the employees will continue have no recourse.
rjs7777 (NK)
Which illustrates why the true criminals of the situation, the employers, should be prosecuted to the fullest extent.
Tournachonadar (Illiana)
Anyone who doubts Trump's appeal would be advised to read this article. If elected, he will be instrumental in the enforcement of Title 8 U.S.C. (immigration code) and will fill up planes for Asia on one-way trips. Similarly Jacques Chirac as Premier of France filled planes up with those illegals from various parts of France's former empire and was widely applauded for doing so.
Wrighter (Brooklyn)
Everyday I pass at least 5 nail salons on my walk from the subway to my house in Brooklyn and every single one is full of disinterested-looking women reading a magazine or on their phone while 2 other women scrub their hands and feet. I would be shocked if any nail-salon frequenter even bothers to learn the name of the person helping them, it's not they're real people right?

Hopefully at least one person will read this and actually care enough to find out for themselves.

It won't be regulations that stop these types of working conditions, it will (or won't) come down to people.
Steve (Washington DC)
Frustrating when the Times lists violations (telling employees to lie, leave, forging payroll) then says "....employers are often unfamiliar with the intricacies of state labor laws." They KNOW they are breaking the law with behavior listed. Why let them off the hook.. by the way, if they immigrated here, they are used to rules, regulations, forms, fees... USCIS ain't easy to deal with...
Shoshanna (Southern USA)
sounds like the law is way too complicated and over reaching
Doug Tarnopol (Cranston, RI)
Gotta hand it to the people I often stick it to: the NYT. Along with bad stuff they do, they also do stuff like this. Good.

Please: more this; less bad stuff. You know what the bad stuff is; just don't do it, and do more this. :)
stewart (louisville)
I was shocked when told the cost of having my nails done in NY city. I pay 35.00 plus a tip in my city This is an average price in my city.I pay 15.00 in NY city.I can not cheat these people. I tip to equal the fee in my city. The people who do my nails in my city are from Vietnam. I would bet that the women who are cheating these helpless women scream the loudest for their personal rights. All of you should be ashamed.
anycomment (N J)
The labor practices described int eh article are wrong and illegal. There are no acceptable excuses for it. If someone is running a business that entails hiring employees they need to know the rules and abide by them or they should be fined and shut down. Period.
Rudolph W. Ebner (New York City)
And that goes for big corporations and Wall Street!@ -Rudy
Joe Paper (Pottstown, Pa.)
Rich New Yorkers go to these salons all the time for cheap manicures.
Then they go out and talk about income inequality and fairness.
Some are even on TV with perfect nails sitting at those shinny desks or fancy leather couches.

Sorta like those that complain about Walmart then go there for cheap goods while nobody is looking.
Christine (California)
Sorta like those- I believe the word you are searching for is hypocrite.
Peter S (Rochester, NY)
The owner's claim ignorance but in fact they are hard working intelligent people who know how to seek out opportunity and establish a business. Many will cheat their employees and the system until they get caught. Its part of the game. To have an attorney and an accountant speak to a group of salon owners is easy enough to do at a very low cost to the group. They don't do it because they want to cheat people, to make more money. Money, money, money.
C.C. Kegel,Ph.D. (Planet Earth)
These business owners, who claim to be ignorant about minimum wage and illegal workers, sure are savvy when it comes to how much to charge. Manicures are outrageously expensive so that even if the workers were paid legally there would be a tidy profit.
Concerned Citizen (Anywheresville)
I don't know where you live, CC, but people here FROM the NYC area say that manicures are absurdly cheap (in the nation's most expensive city) -- $15.

I live in the Rustbelt Midwest, and I could NOT get a manicure at anything like that price -- closer to $30, plus tip.

I also notice that tips are not mentioned. I thought manicurists were like waitresses -- that the hourly minimum was just a base, and that their main income came from tips. Am I wrong about that?

If manicures in the Rustbelt run $30+, it seems to me that it should cost $50 or more in NYC.
NYTReader (Pittsburgh)
"In interviews, some owners of salons that were cited insisted that they had done nothing wrong and that a few bad operators had tarnished the entire industry. Several said their employees would rather be paid in cash, under the table, because they were not authorized to work in this country."

They are stealing from all law abiding, tax paying citizens.
Off to jail with them!
Dlud (New York City)
What are these NYS investigations worth? The Department of Health's oversight of nursing homes is similar: a spirt of headlines in the press and nothing changes. How about staying on top of whether these investigations have any teeth and lead to positiive long-term change?
ManhattanWilliam (New York, NY)
The argument SHOULD be a simple and straightforward one: put proper legal protections in place to protect both undocumented and abused workers AND the general public that avail themselves of nail salon services across the state. WHY is this proving to be an intractable problem? Albany inefficiency and corruption at it's clearest and worst if they can't sort out an industry as basic as this one.
AmandaG (Brooklyn, NY)
The public needs an updated (and regularly monitored) list of all local nail salons that abide by NY labor laws. Has anyone complied this? I myself would happily travel where needed to patronize only those salons that pay and treat their workers well. I also know I am not alone! This would encourage other salons to raise their standards to attract new and loyal customers.
michjas (Phoenix)
Just take the New Jersey Transit.
David Sumner (Brooklyn NY)
Good idea. Short list
P2 (NY)
Every salons need a sign like Grade "A", as we see out side of restaurant. If they don't comply mark them "F" or we will assume "F" for salon who doesn't have a sign.
DSS (Ottawa)
This is the peak of the iceberg folks. How many so called business owners are violating basic standards of decency to be in that 1% that Trump represents? A vote for a Republican is a vote for supporting wage inequality.
anycomment (N J)
I was not aware that Trump has expressed his support for these business practices. You need to share your documentation and publicize it. The Times didn't even include the bombshell in its article.
DSS (Ottawa)
Hey anycomment here is the documentation from the Washington Post. http://www.washingtontimes.com/news/2015/aug/20/donald-trump-having-low-...
anycomment (N J)
The article says Trump supports the current minimum wage. It does not say he supports paying less than the legislated minimum wage -- which is criminal.
S.L. (Briarcliff Manor, NY)
As long as women are willing to have their nails and cuticles trimmed by untrained or barely trained women and then expect to pay only $20 for their manicure and pedicure there will always be exploitation. These shops are in business because they have customers. Women should be afraid of getting serious infections from salons. If the salons don't follow the law on wages, then they are probably not following the law on health code regulations either.

Salons which have been ordered to pay back wages are unlikely to ever hand over any money to their current employees and certainly not past employees whose names they probably don't know. Government fines end up in the coffers of the state and don't benefit the victims of lost wages.

The state should be licensing the nail care workers. Not having a license or a provisional training license should mean you can't work in this business. Anything less is a farce. The government should have an online program for figuring wages so there are no discrepancies in how much an employee is owed.

The real fix for this is having women learn to do their own nails. If you don't start cutting cuticles to begin with, the nails pretty much take care of themselves except for a little filing. A pumice stone used in the shower or bath takes care of rough feet. Try it. There's no exploitation when you do it yourself.
Blue state (Here)
When you are old and can't see your toenails anymore, get back to me.
Charles W. (NJ)
"The state should be licensing the nail care workers."

And of course this would all even more useless, parasitic bureaucrats to the millions that already infest all levels of government but the government worshiping progressives can never have too many bureaucrats. In their ideal world everyone would work for their great god government, just like in the old Soviet Union and we all know how well that worked out.
Jeffrey Graf (Rosendale, NY)
I agree with S.L.: the blood is on the hands of those who use these services. Whether they admit it or not, they are promoting slavery. Shame on them: every one.
Yoda (Yoda)
the question this NY Times article should ask, but does not, is why are women so willing, to fulfill vanity, to harm so many workers? Women who patronize these establishments need to be called out.
michjas (Phoenix)
Ever go to a restaurant that only took cash. Paid a plumber in cash. Patronized any cash business? Then call yourself out.
Lizbeth (NY)
Yoda - I just did a quick search for news stories about companies being forced to pay back wages to their employees. There's literally hundreds of companies, big and small, who cheat their employees out of their earned money (even Disney is currently being sued--I hope you don't support them by buying any Star Wars merchandise). How is a consumer supposed to know if the money they pay goes to the workers or the owners?

The only way to ensure that employees are treated fairly is to come down as hard as possible on the people breaking the law by shortchanging their employees. The crackdown discussed in this article--making actual appearances at the nail salons, giving the employees ways to contact the Labor Department outside of their boss's supervision, making sure everyone knows their rights--is a great start.
rjd (nyc)
It is apparent that the Government is overwhelmed in their attempt rein in the chaotic and completely unregulated Nail Salon business.

Therefore they need the help of the public.

Consequently, I am once again recommending a Compliance Rating System similar to what can be found in the windows of every restaurant in the City.

Once the Public is made aware of abuse.... simply by placing a letter in the window.... they will take their trade elsewhere or force the owners into compliance.

No one is going to sit "uncomfortably" in a Nail Shop with a "C" rating in the window knowing that they are supporting some sort of abuse when they could just as easily walk down the block and and receive the exact same service in an "A" rated establishment.
S.L. (Briarcliff Manor, NY)
If the price is right they will happily have their nails done anywhere. "A" rated establishments will be so rare they will be nearly impossible to find. How many women do you think stopped having their nails done after the last article about exploitation? They ease their conscience with a $4 tip.
rjd (nyc)
I obviously tend to disagree with you. The social justice conscience and perceived peer pressure will far outweigh the ability to save a couple of bucks in the mind of this consumer. Right now they can all feign total ignorance. But once a Letter is posted there will be no excuse.
David Sumner (Brooklyn NY)
If only the city, state labor board, and IRS would investigate the entire hospitality industry. As a reputible spa owner, I know something of this subject. We can't get the police, attorney general or district attorney's offices to crack down on the obvious cases of prostitution and illegal labor practice located next door, much less the tax fraud and wage violations rampant in Brooklyn. Perhaps they are just overwhelmed?
Jonathan (NYC)
I would suggest that perhaps the profits from these businesses are more widely distributed than you might imagine....
Tom Ga Lay (Baltimore)
“I want to follow American law and rules to be good citizen, but something we don’t know, they have to let people know first,” Ms. Yang said.". Ms. Yang, the owner of Lucky Nail, blames others for not telling her about the laws. It is her duty to find out about all the laws relevant to the operation of her shop, including the inconvenient ones stipulating that she has to pay her employees fairly.
Consumers need to be reminded that the chemicals used in these products contain quite a few carcinogens: toluene; formaldehyde; acetone; coloring dyes, to name a few. Furthermore, the nail polish applied to nails, blocks one of the mechanisms that our bodies use to exchange gases with the outside world. Stop this practice of constant use of polishes on your nails, for your own health concern if not for others.
michjas (Phoenix)
When payrolls aren't recorded, business owners can't deduct the wages they pay. That would result in higher taxes which makes it crazy not to report wages. Most small businesses that run off the books are doing it to evade taxes. The key to the scam is not to report cash receipts, so that income is underreported. A labor department investigation looks only at one side of the equation. It examines reported wages without looking at reported income. The IRS has ways to investigate off the books businesses that result in huge tax penalties. Typically, small businesses that choose to flout the law are most concerned about taxes. They generally do not drastically underpay their employees. Perhaps nail salons are unique in scamming their employees only. But construction, restaurants and family businesses have been running this scam forever and the big loser is always the IRS.
cookie czar (bronx)
Vote with your feet. STOP supporting businesses who engage in wage theft!
Penn (Pennsylvania)
What this situation cries out for is education, both of the workers and of the salon owners and managers. Instead of protesting the crackdown, Ron Kim should be spearheading a program to teach owners how to comply with the law, and especially how NYS calculates overtime. Workers should be informed of their rights, something that could be done initially with flyers giving summaries in English, Korean, and other languages as appropriate, and posting those notices in businesses frequented by workers. The issue of undocumented workers needs to be dealt with separately but compassionately.

Having worked as staff at a university where "you don't put in for overtime" was the murmured but unpublished rule for non-exempt employees who were nonetheless regularly required to return to campus after a full shift to work at after-hours events, I believe this problem is rampant.
DSS (Ottawa)
One word that needs to said that could stop this kind of practice, "unionize."
Ted (NYC)
Until they start sending these owners to prison, nothing is going to change. I hope every salon owner who gets caught and cries racism has their fines tripled.
A (Bangkok)
Ted: Like all industries with exploited labor, it is a demand-driven problem.

In other words, arresting owners is addressing the supply of shops, not the demand for them.

Other shops and exploitative owners will open to replace those arrested as long as there is demand for a $5 manicure, or whatever the going rate is.

Fine the clientele, then you would see these sweat shops and exploited workers disappear in no time.
Lizbeth (NY)
A - This isn't like prostitution, where the person purchasing services knows that it's illegal. There's no way for the average consumer to know if the staff is being underpaid--it's not just an issue at nail salons, but at restaurants, retail establishments, etc.

A quick google search for companies that had to pay back wages included nail salons, airlines, restaurants, cleaning companies, venture capital firms, blueberry growers, clothing suppliers, and hotel casinos--and that's just the first page of news results.

The government needs to come down harder on the bosses and companies who are abusing their workers. Instituting a minimum manicure price won't do anything if that money doesn't make it to the workers.
Snack-Girl (Massachusetts)
The NYT reporting about this industry is extremely important. These workers desperately need the state's intervention to be paid for their work and for the abuse to cease. Please do not let up on your scrutiny. I always thought a manicure for $12 was too good to be true - and it is.
Gloria (&lt;br/&gt;)
The response by the salon industry has been thoroughly disgusting. These salons have made millions off the back of the most vulnerable people, and have habitually flaunted the laws. The industry has bought off several local politicians who now lobby in their favor. Throw the book at them.
Ratatouille (NYC)
Large numbers of Asian run businesses in NYC, particularly Korean and Chinese, grossly violate labor laws and get away with it on a daily basis. It's a cultural attitude that is difficult to police. The Korean delis that have multiplied over the last 30 years have been sued multiple times by their overworked, underpaid workers, it looks like the nail salons are the new thing. The city and state need to double-up on their efforts to crack down on these practices: heavy fines, making them pay all back taxes owed and maybe jail time will do it. Above all make them pay back what they have stolen from their employees.
DSS (Ottawa)
10-1 odds these salon owners vote republican. Making America great again means making these kinds of business practices legal.
Shiggy (Redding CT)
As an occasional customer of nail salons in CT, I feel partially to blame for this situation. It is obvious based on the prices charged and the seemingly endless hours they are open that they are not paying their workers anywhere near a fair wage for their labor.
swm (providence)
Rather than just feel guilt, why don't you call the salons you've gone to and voice your concern.
Frank (Chicago)
Should we be surprised about the underpay issue? Salon owners act like 'slave' owners. Most working in the salons are without proper paper works and the owners are sucking those poor souls dry!
BS (Delaware)
The owner of the first mentioned salon should be hired by a large Americian corporation for they know how to run a business in true capitalist style. Lie, cheat, steal, game the system, abuse and underpay your employees, hide your profits from being taxed, buy the lawmakers and laws you want and let greed be your guide. It's the American way. These small business owners would fit right in on any American board and on any international corporate board as well.
Yoda (Yoda)
maybe you should be blaming their female clientele who are more than willing to exploit that workforce for their own vanity.
Ray Zinbran (NYC)
I pay everything for my employees, salaries, bonuses...and even health insurance. I only have 3 employees, but treat them better than anyone else in my industry. Last year one of my associates came down with lymphoma and I paid her salary all through her six months of chemo.
And no, paying people well and treating them well does not mean you always get the best out of them. The people who embrace my system, well they are amazing. And it is astounding to watch them get boyfriends or girlfriends, lose weight, and recover from their other positions.
I pay what I do because it is the right thing to do. Because I happen to be here first and fate and luck made me the boss. It costs me a little more to do what I do, but I say to these salons..and Starbucks, and McDonalds. If you can't afford to treat your people right, they you should be out of business. You are Un-American.
Anne (NY, NY)
Wish there more employers like you out there.
Mirabhai (New York)
Thanks, Ray. It's important for us to remember that the enforcement of labor laws not only protects employees, but also law-abiding businesses. Following the law and doing the right thing shouldn't put you at a competitive disadvantage.
Christine (California)
Oh, they are VERY American. In America it is all for yourself at any cost to "them". All that matters in today's America is: He who does with the most money, wins.
kate (dublin)
Why do the women who go to these salons not understand that having the kind of nails that have become fashionable in the last few years is totally dependent on the exploitation of others? That has always been pretty clear from the prices they charge for the amount of time one spends. Very different from a good haircut! And yet having such nails is now understood to be proper grooming, which was not the case across such a broad swath of society not so many years ago.
Yoda (Yoda)
so men are not to blame?
Concerned Citizen (Anywheresville)
It's a fashion and it hasn't been around forever.

It is due, in part, to the popularity of very fancy, costly shoes that often have open toes and expose a lot of the foot -- and which also led to women of fashion NOT wearing hosiery.

You did not see this in "my day" (30-40 years ago), because we all wore pantyhose. Why go the expense of fancy nail polish, manicures, sanding off dead skin -- and then cover it up with pantyhose? Pantyhose and all stockings basically hide your feet, under a sheen of "flesh tone". But once your legs and feet are naked -- they better look FLAWLESS, with baby soft skin and nails like jewels -- OR you are going to pretty much look like Wilma Flintstone or a Hobbit.

Go and watch some older films, from maybe the 70s and 80s. Most of the female actresses have natural manicures -- nothing more than neatly groomed nails. They only rarely have fancy "dragon lady" nails, and when a character does, she is usually a villainess. It just wasn't something ordinary women aspired to.

In college in the 70s, and working professionally in the 80s -- I didn't even own a bottle of nail polish, except one old bottle of clear polish I used to dab on runs in my pantyhose. I did not know a soul who went to a nail salon. I didn't even know that "nail only" salons existed! The first time I ever had my nails done, it was for my WEDDING.

Women used to be much more into "the natural look". That's something I'd love to see come back into fashion.
Joe (Iowa)
The NYT is doing a good job really digging into this nail salon situation, but for some reason takes a cavalier attitude towards laws broken by which compromise national security by the President's cabinet members.
HonestTruth (Wine Country)
This is an outrage -- where did they find 15% of nail salons that aren't abusing workers?
David Taylor (norcal)
It is simply unfair that industries like this - and there are scores of others, ranging from child care to contracting to gardening - escape the long arm of the tax man. It leaves us suckers working for reputable firms for hourly wages bearing the tax burden for the entire country. One reason the US works as a country is because there is a high rate of voluntary tax compliance. The cost of losing this compliance is astronomical and would likely end the US position in the group of first world nations.
Jonathan (NYC)
Not only that, they collect food stamps, get subsidized child care, and receive subsidies for health insurance under the ACA, all because they have 'low income'. There's no limit to how low your income can be if you don't tell anyone about it!
Jonathan (Brooklyn)
"Cash only" businesses make me suspicious generally, particularly those that use mental calculations and a cigar box (or the equivalent) for transactions. After reading this article and Mr. Taylor's comment, I suggest:
a) Businesses are to be fined automatically if they don't keep payroll records and provide stubs to employees; and
b) Businesses (especially those that are cash-only) that don't keep verifiable sales records are to be charged some estimated tax rate (based on industry, location and other relevant factors), similar to the way a full-distance toll is charged for people who don't have their entrance-ramp ticket when they get off the turnpike.
OzarkOrc (Rogers, Arkansas)
Somewhere around 15-20% of American workers have already slipped back into third world conditions.

Of course, most of them are brown people or "poor white trash" types of one sort or another, not a big concern of suburban and exurban (Republican) voters, whose representatives are busy hollowing out our safety net. Think Flint, Michigan as an example.
Christina (Italy)
Nail salons are an enviromental nightmare.