Every employer must pay its employees their legal wages. That is not at issue. Governor Andrew Cuomo’s August 10, 2015 announcement requiring all nail salons in the State of New York to purchase wage bonds was swift action to provide employees some assurance for wage claims they may have against their nail salon employers.
While we applaud the speed with which the Governor took action to protect nail salon workers, the wage bond providers have not had the time to develop a wage bond product that matches the economics of the nail salons’ business model and effectively measures risks on those bonds.
This new legal requirement on nail salons disproportionately affects Korean American and Chinese American business owners and employees.
The Council of Korean Americans urges Governor Cuomo to work with the wage bond industry, the nail salon owners, and labor advocates to determine a new deadline by which the nail salons must have complied with the new law. That deadline should require all parties to move with all due haste and allow the sellers and new buyers of the wage bond product to correctly price this product for the nail salon industry.
This will ensure that more employers in the industry are in full compliance, which in turn will truly provide the necessary protection for all nail salon workers.