Hair Cuttery Stylists Owed Unpaid Wages and Commissions After COVID-19 Shutdowns, Lawsuit Claims

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The operators of the Hair Cuttery chain of salons failed to pay stylists wages and commissions to which they were entitled after shutting down mid-pay period due to the COVID-19 pandemic, according to a proposed collective action filed in New Jersey federal court.

The defendants, Ratner Companies L.C. and the group’s CEO and COO, made the call around March 21 to cease operations at their locations across 16 states, the suit explains. The decision to close up shop in response to the coronavirus crisis came during the middle of a pay period that began on March 15, the case claims, and was followed by what the plaintiff calls “conflicting information” with regard to how employees would be paid given the timing and circumstances.

Per the suit, Hair Cuttery stylists are paid through commissions and entitled to a percentage of the revenue they generate for a salon during a given shift. If a worker does not hit minimum wage within this pay structure during a shift, the employee is paid minimum wage for that shift, the suit explains. The lawsuit says that Hair Cuttery workers were to be paid on April 7 for shifts worked between March 15 and 21.

After the salons shuttered, workers were allegedly told first that they would be paid for the hours they worked and could use their accrued paid time off (PTO) to make up for days on which the salons were closed. Then, the suit says, workers were told they could not use their time off and would not be paid any wages for the hours they worked between March 15 and 21.

The plaintiff says that Hair Cuttery’s CEO and COO informed workers via video that they would not be getting paid as promised on April 7 because the company was awaiting federal funding. The defendants added that they intended to pay the employees either through that funding or after the salons were again operational, the suit says. Despite the defendants’ apparent assurances, the case alleges the parties violated the Fair Labor Standards Act (FLSA) and New Jersey Wage Payment Law by failing to pay Hair Cuttery workers at least the minimum hourly wage for hours worked between March 15 and 21.

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