Jan. 18—A chain of beauty supply stores in Miami-Dade and Broward owes $53,841 in back pay to employees after the U.S. Department of Labor says the company used cash pay to hide that they didn’t pay earned overtime pay.
Classy Beauty Supply, the parent company of Classy Girl Beauty Supply stores in North Miami Beach, Miramar, Fort Lauderdale and Margate, owes that money to 10 employees, $5,384.10 per worker.
Labor said Wage and Hour Division investigators found once some employees exceeded 40 hours per work week, Classy Girl paid them their remaining hours in cash at straight time instead of at overtime rates. Other employees got paid off the books in straight cash for their straight time work and for their overtime work at straight time rates.
State records say Classy Beauty Supply has been run by company president Hussein Hassan since being registered with the state in 2008.
“Employers must pay their employees all of the wages they have earned for all of the hours they have worked, including overtime when they work beyond 40 hours in a workweek,” said Lesbia Rodriguez, the Miami district’s Wage and Hour Division acting director.
“The U.S. Department of Labor will continue working to level the playing field for employers who play by the rules. We encourage all employers to reach out to us for compliance assistance and for help understanding their obligations to their employees.”
Employers that find they’ve committed overtime or minimum wage violations can self-report through the Payroll Audit Independent Determination (PAID) program.
The Wage and Hour complaint section of the Department of Labor website contains information on how to file a complaint. Miami’s Wage and Hour Division office can be reached at 305-598-6607.