Hair Cuttery and sister companies ordered to pay $1.1 million to workers they stiffed
Being shut down by a pandemic forced Creative Hairdressers into bankruptcy, but a U.S. Bankruptcy Court let the company know that didn’t mean it didn’t owe employees pay for work already done.
That’s approximately $1,149,965 to over 7,500 employees, the U.S. Department of Labor announced Monday night, or about $153.33 per employee.
Creative Hairdressers entered the coronavirus era on March 21, when it shut down all 750 salons operating as Hair Cuttery, BUBBLES the Color Salon, Salon Cielo or Salon Plaza. Alas, somebody forgot to pay the employees their last paychecks.
That’s when the Department of Labor’s Wage and Hour Division got involved and included among the creditors.
Benefiting from this are the chain’s workers in Florida, North Carolina, Pennsylvania, Illinois, Indiana, Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode Island, Virginia, West Virginia, Wisconsin and Washington, D.C..
Creative Hairdressers has entered an asset purchase agreement with HC Salon holdings.
“While the employer’s violations were not found to be willful, its employees are among the thousands of personal service workers in America whose livelihoods have been dramatically affected by the coronavirus pandemic,” said Cheryl Stanton, Wage and Hour Division Administrator. “Like many workers, these employees depend on their paychecks to meet their basic living expenses.”
This story was originally published May 12, 2020 at 6:43 AM.
