Finance News & Insights

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.

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