The operator of Hair Cuttery salons in Delaware and other states in the region has been ordered to pay nearly $1.2 million in back wages to more than 7,500 employees.
The order from Maryland U.S. Bankruptcy Court was applied to Creative Hairdressers Inc. – an operator of unisex hair salons in 15 states and the District of Columbia – to pay $1,149,965 in back wages to more than 7,500 employees.
The action comes after U.S. Labor Department Wage and Hour investigators found Creative Hairdressers Inc. – doing business as Hair Cuttery, BUBBLES The Color Salon, Salon Cielo and Salon Plaza – closed all of its 750 salon locations on March 21, 2020, amid the coronavirus health crisis and failed to pay their employees’ final paychecks.
The division deermined that the employer violated the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA) and affected more than 7,500 employees. Creative Hairdressers Inc. filed Chapter 11 bankruptcy and was purchased by another company.
In addition to Delaware employees in Connecticut, Florida, Illinois, Indiana, Maryland, Massachusetts, New Hampshire, New Jersey, North Carolina, Pennsylvania, Rhode Island, Virginia, Washington, D.C., West Virginia and Wisconsin will receive back pay.
“While the employer’s violations were not found to be willful, its employees are among the thousands of personal service workers in America whose livelihoods have been dramatically affected by the coronavirus pandemic,” said Cheryl Stanton, Wage and Hour Division administrator. “Like many workers, these employees depend on their paychecks to meet their basic living expenses. Even in these unprecedented times, the U.S. Department of Labor’s Wage and Hour Division is committed to ensuring that workers receive their hard-earned wages.”
In addition to the back wages, the court ordered Creative Hairdressers Inc. to pay an approximate total of $3.1 to satisfy state minimum wages, 401(k) contributions, bonus program payments and applicable employment-related taxes.
