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  1. #1
    Join Date
    Mar 2011
    Posts
    3

    Default Employer Confusing Employees Out of Money

    What I would like to find out is if anyone thinks the following is illegal. If so, exactly what type of lawyer should I talk to.

    My sister works for a ritzy high dollar hair salon. Full service spa type of place. They have 60 stylists working there.

    All of the items below seem odd to me, but thats why I am asking.

    Every stylist is charged twenty cents per client to cover the credit card machine fees.
    When a stylist uses hair color on a client, the stylist is charged for the color as follows:
    $3.80 for the first color, $1.90 for the second color, and $1.90 for the third color. Not all clients get 3 colors every time. A tube of color costs the company $5.00. One tube of color does 2 heads. No they can't keep what they don't use.
    All the above charges come off the top of the pay and the remainder is posted on the pay stub as the gross. They are not furnished any type of report that shows what came off the top.

    They get paid every 2 weeks. Every pay stub lists the amount of tips the stylist supposedly received. They get a separate document that has the tips broken down by client.
    The separate document is what they get their tips paid by. In other words if the sheet for this pay period says $300 then thats what she will see in the bank.
    I did a running total for a few years of what the sheet says versus what the pay stub says and here is a sample of what it looks like:

    DATE PAYSTUB TIPS ACTUAL PAID TIPS
    1-1 to 1-15 439.95 321.44
    1-16 to 1-31 439.95 291.50
    2-1 to 2-15 521.40 362.25
    2-15 to 2-28 521.40 401.12
    3-1 to 3-15 488.29 275.10
    3-15 to 3-31 488.29 307.33

    As you can see, every 2 weeks their number never changes. It is always this way. I have crunched numbers until I was blue in the face trying to figure out where they come up with the pay stub tip numbers but can not.
    On top of these numbers, the over taxation is another issue I would think?

    There are many other things that I could list but will spare everyone.
    Why doesn't she go work elsewhere? She has medical issues and is tied to the job for the health insurance. She's been there 15+ years and still gets 1 week vacation.

    I'm just looking for advice. Many of these girls are afraid to confront the employer for fear of losing their job. Any thoughts would be appreciated.

    Thanks

  2. #2
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Employer Confusing Employees Out of Money

    We ask for your state for a reason. What state?

  3. #3
    Join Date
    Mar 2011
    Posts
    3

    Default Re: Employer Confusing Employees Out of Money

    Apologies. Florida.

  4. #4
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Employer Confusing Employees Out of Money

    OK, that's too bad, because Florida basically has no wage and hour laws of its own, so federal law would apply.

    First, let's talk tips. How are tips reported? A tip sheet? Other method? Is the worker keeping a daily tip diary (strongly recommended)? Are the tips reported on the pay stub different than what the employee reports they have received (including tips charged on a credit card)?

    Federal law allows the employer to "pass through" the merchant "credit card fees" to the employee on tips only (not on the regular service). So, if the credit card company charges the employer 3% to process the charge, the employer can reduce the tips paid out to the employee by 3%. Is this "charge" of $.20 charged for cash clients also? Although it's a crazy way to do it, if this is a "ritzy" salon, it's likely most customers pay with a credit card and, if you netted out $.20 per client against the percentage the credit card company charges, it's probably much less deducted from the employee the way they are doing it.

    I'm sorry, I don't understand the "numbers are always the same". They look different to me. What exactly is the same? What is the gross pay based on? Commissions or an hourly rate (less the "supplies" charge)?

    Charging the employee for supplies is not inherently legal, but it's certainly fishy. She should be able to keep her own records of how much color she uses on each customer. I recommend your friend contact the nearest office of the federal DOL and ask this question. She will probably have to leave a message and an investigator familiar with this issue will call her back.

  5. #5
    Join Date
    Mar 2011
    Posts
    3

    Default Re: Employer Confusing Employees Out of Money

    Tips, years ago, were given directly to the stylists right there in their chair at time of service like it is with most places. Many years ago the employer made it known that tips are to be given at the front desk to make it more "convenient" for the client not having to walk all the way back to the stylist. Some pay with cash but like you said, most pay with plastic. Needless to say across the board tips went way down by doing it this way. The stylists have no way of recording the tips. Since it is done at the desk, the stylists have to hope the people accepting the tip on their behalf are honest. She went through that a while ago as well. A client that has tipped $20 for years, all of a sudden tips $8. The salon, provides the stylist with the "separate document" I mentioned earlier. This document is the broken down record of what each client gave as a tip and on what date. The stylist gets this document along with the pay stub.
    Sorry the money chart was confusing, it was typed in more understandable but when the post was submitted it bunched it all together. If you look at the first entry, the tips that the employer reported on the pay stub is $439.95. What the tip report document said was $321.44. So this is plain wrong in the fact that the employer listed over $100 more in tips that was actually taken in AND paid to the stylist. Now look at the next 2 weeks, the employer reported tips on the pay stub is exactly the same amount as the previous 2 weeks. Every month, the tips reported by the employer is exactly the same for the 2 week periods in that month. Look at the chart I made above and read it from top to bottom and you should be able to understand it better now. Sorry for the confusion in that, didn't know how else to show it. So yes to your question, the employer is reporting higher tips received than they are actually paying the employee. 2 weeks of tips on the pay stub exactly the same every month? Not possible. Like I said, the stylist has no way to report tips herself because tips are given at the desk. Recorded by the employer, and paid every 2 weeks to the stylist in a separate direct deposit than the actual payroll for the 2 weeks. So 2 direct deposits every 2 weeks, one for payroll and one for tips.

    Stylists are paid a percentage based on the level of their skills. Most seasoned stylists get 40%. In a nutshell they get a commission not hourly pay. This is their gross pay.
    Lets say in a 2 week period the stylist did $1000 in services. Haircuts, colors, foils, whatever. They get 40% of this. So of that $400 that they earn as a commission, the .20 per client for credit card charges, supplies usage, etc. is deducted from this $400. What is left is their gross pay. From there, deductions are made on the pay stub for taxes, health insurance, etc.
    As I mentioned earlier, the deductions prior to achieving the gross pay amount are not furnished to the stylist in any way. I had my sister keep a log of what colors she uses to figure out what the deduction for that portion would be. She could not accurately do this because of the pace of people getting in and out of her chair. The stylists are allotted X amount of time with the client based on what service they are getting. So there is hardly any time to take out a notebook and write down everything you did for the previous client. Let alone use the restroom when it's not your break time.

    There are employees in this salon that just wash hair. Nothing else. Wash, rinse between colors, etc. These girls get charged for water usage in the same way that the stylists get charged for color. I won't go into the charges for the employees that do the massages, facials, nails, etc.

    To me, this just seems like one big confusing scam to the employees.

    I do appreciate you taking the time to read and respond.

    Thanks

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