The U.S. Department of Labor said Wednesday that it has settled a federal lawsuit with three Rhode Island nail salons over allegations of retaliation against employees that began with a July 2020 workplace safety investigation.
The DOL had sued New VIP Nail Spa Inc., VIP Neo Nails Inc. and VIP Spa & Nails Inc., and their owner, Steven Xingri Cao, after Mr. Cao fired and threatened a worker who became sickened by an undiluted sanitizer.
The employee had filed a complaint with the U.S. Occupational Safety and Health Administration.
After close to two years of litigation, the defendants agreed to pay employees $753,500 in back wages and liquidated damages. The settlement prohibits further violations of the Occupational Safety and Health Act and the Fair Labor Standards Act.
The settlement also includes punitive damages to workers – one who was fired for raising safety and health concerns, another who was allegedly threatened by Mr. Cao and a third who Mr. Cao made sign false employment documents, the DOL said.
The defendants agreed to provide anti-retaliation training to supervisors, post employee rights notices in languages other than English, and hire a payroll monitor for at least two years to evaluate compliance going forward.
The DOL said the litigation represented one of the few joint cases the department has ever filed involving retaliation claims under both the Occupational Safety and Health Act and the Fair Labor Standards Act.