Wash.-based spa required to pay back wages
A spa in Redmond, Wash. was ordered to pay back wages to 23 massage therapists. According to Puget Sound Business Journal, the U.S. Department of Labor investigation into the business found that massage therapists had been misclassified as independent contractors. A Seattle judge mandated the company pay $135,536 in back wages and liquidated damages to the spa employees.
By classifying the workers as contractors, the spa company was able to pay the massage therapists on a commission basis, violating the Fair Labor Standards Act. In addition, many employees worked between 57 and 74 hours per week without receiving minimum wage and overtime compensation for hours worked in excess of 40. Under the FLSA, employers must pay at least the federal minimum wage of $7.25 for all hours worked, as well as overtime pay of time and one-half.
In addition to back pay and damages, District Court Judge Thomas Zilly ordered the spa company to install time clocks at all three of its locations and provide a copy of its payroll records to the DOL Wage and Hour Division.
Attendance software better enables employers to keep records of worker hours and to maintain compliance with labor laws. To further prevent lawsuits, workplaces must ensure that all employees are classified correctly based on their job duties.
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