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Los Angeles Times
3 days ago
- Business
- Los Angeles Times
Federal lawsuit alleges discrimination against Vietnamese women nail techs
The fight for licensed manicurists to be able to work as self-employed without passing a test is going to court. Backed by Vietnamese American nail technicians and nail salon owners holding protest signs, including 'stop Asian hate,' Republican Assemblyman Tri Ta announced Monday morning the filing of a discrimination lawsuit outside of the Ronald Reagan Federal Building and U.S. Courthouse in Santa Ana. 'Earlier this year, our office received many concerns from Vietnamese American manicurists and nail salon owners,' Ta said at a news conference. 'Their lives were turned upside down overnight when the independent contractor status expired on January 1.' 'It is not just unfair, it is discrimination,' he added. Licensed barbers, cosmetologists, estheticians and electrologists can still work as independent contractors under state labor law without being subjected to a rigorous test. But exemptions under Assembly Bill 5 expired this year for manicurists. The change has left manicurists and nail salon owners alike confused as to whether non-employees can continue renting booths for their businesses — a decades-long industry practice. Ta, whose 70th Assembly District encompasses Little Saigon, said 82% of manicurists in the state are Vietnamese, with 85% of those being women. The federal discrimination suit, filed on May 31, represents several Orange County nail salon businesses as well as individual manicurists. Gov. Gavin Newsom and the heads of five state agencies and boards are named as defendants. 'This lawsuit seeks only one thing — to make sure that all professionals in the beauty industry are treated equally and to eliminate the obvious discrimination against the Vietnamese community,' the complaint reads. Attorney Scott Wellman, who is litigating on behalf of the nail salon owners and manicurists, held up a copy of the complaint during the news conference. He claimed the equal protection rights of his clients under the U.S. Constitution are being violated by the lack of an exemption. 'This wrong has to be righted,' Wellman said. The suit represents a change in strategy for those fighting on behalf of aggrieved manicurists and nail salon owners. In February, Ta introduced Assembly Bill 504, which aimed to reinstate the exemption for manicurists, but later claimed the proposed legislation couldn't even get a hearing from the committee on labor and employment. He followed up in March by calling for the U.S. Department of Justice to launch an investigation into alleged racial discrimination codified in California labor law, before ultimately turning to federal court. 'These hardworking professionals deserve the same freedom to set their own hours, to choose their own clients, to rent their own booths and to run their own businesses on their own terms just like other peers in the beauty industry,' Ta said Monday. Ta and the suit cite statistics from a UCLA Labor Center report on California's nail salon industry that was published last year. Co-authors of the report, though, have been publicly critical of Ta's efforts to have the exemption reinstated. 'As an industry predominantly consisting of Vietnamese and female manicurists, AB 5 protects the community from misclassification and labor violations that have long existed at the workplace so that they can receive the wages, benefits and protections that all workers deserve,' said Lisa Fu, executive director of the California Healthy Nail Salon Collaborative and report co-author. The report found that 80% of nail salon workers are considered low-wage earners, with 30% of manicurists in the state classified as self-employed, which is triple the national rate. Assemblywoman Lorena Gonzalez, who authored the sunset provision in AB 5, previously told TimesOC that the nail salon industry has a long history of high misclassification rates that needed added guardrails for labor rights 'while still allowing individual business owners the ability to work as a sole proprietor and simply rent space from a salon.' Manicurists who back the federal discrimination suit spoke out at Monday's press conference. 'I want to be able to continue to work as an independent contractor,' said Loan Ho. 'It gives me more flexibility. I have time to raise my children.' Emily Micelli works out of Blu Nail Bar at Fashion Island in Newport Beach, which is the lead plaintiff in the suit. She has more than 20 years of experience as a nail technician and doesn't want to be a nail salon employee. Micelli left the previous nail salon she worked out of when the owner wouldn't allow her to continue as an independent contractor. 'I cannot keep clients on my phone, make appointments and come up with my own custom design packages,' Micelli said after the news conference. 'I have to abide by the salon's rules. It will make me lose business.' Micelli believes that while the law may be well-intended, it otherwise serves to discriminate against Vietnamese American women like herself. 'I know the law wants to protect us as workers,' she said, 'but being a W-2 [worker] is better for office workers not for people like us, who are artists. I'm actually an artist — a nail artist.'
Miami Herald
3 days ago
- Business
- Miami Herald
Vietnamese American salon owners sue California alleging labor code is discriminatory
Several Vietnamese American-owned nail salons in Orange County have sued California, alleging the state's labor code is discriminating against their businesses. The lawsuit, filed in U.S. District Court in Santa Ana on Friday, alleges that the state's labor code violates the 14th Amendment's guarantee of equal protection under the law by forcing nail technicians to be classified as employees. The suit argues that professionals in the beauty industry for years have operated as independent contractors, renting space in a salon and bringing in their own clients. That changed at the beginning of 2025, when nail technicians in the labor code became required to be classified as employees, the lawsuit said. California Assemblyman Tri Ta (R-Westminster), who represents Little Saigon and surrounding communities, said his office has fielded much concern from Vietnamese American nail salon owners. "Their lives have turned upside down overnight," Ta said at a news conference Monday morning. "It is not just unfair, it is discrimination." The switch in labor law came back in 2019, when a sweeping law governing worker classification rules across various industries called Assembly Bill 5 was approved - a law that codified a California Supreme Court decision creating a stricter test to judge whether a worker should be considered an employee rather than an independent contractor. AB 5 sought to crack down on industries where many workers are misclassified as independent contractors, who are not afforded protections including minimum wage, overtime pay and workers' compensation that employees have access to. But various industries have said AB 5 targets them unfairly, creating an uneven playing field for businesses. Some professions received carve-outs, including doctors, accountants, real estate agents and hairdressers; while others such as truckers, commercial janitors and physical therapists must abide by the tighter classification rules. Some implementation of the law was staggered to give industries, including nail technicians, time to adapt. The lawsuit describes how the nail salon industry in California became dominated by Vietnamese workers in recent decades, when Vietnamese refugees began fleeing to the U.S. in large numbers in 1975 after the fall of Saigon in America's failed military intervention in Southeast Asia. The industry "has become synonymous with the Vietnamese community," the lawsuit said, with more than 82% of all nail technicians in California being Vietnamese American, and some 85% women. The businesses that filed suit include multiple locations of Blue Nail Bar, Happy Nails & Spa and Holly and Hudson Nail Lounge. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
4 days ago
- Business
- Yahoo
Vietnamese American salon owners sue California alleging labor code is discriminatory
Several Vietnamese American-owned nail salons in Orange County have sued California, alleging the state's labor code is discriminating against their businesses. The lawsuit, filed in U.S. District Court in Santa Ana on Friday, alleges that the state's labor code violates the 14th Amendment's guarantee of equal protection under the law by forcing nail technicians to be classified as employees. Read more: Google settles lawsuit alleging bias against Black employees The suit argues that professionals in the beauty industry for years have operated as independent contractors, renting space in a salon and bringing in their own clients. That changed at the beginning of 2025, when nail technicians in the labor code became required to be classified as employees, the lawsuit said. California Assemblyman Tri Ta (R-Westminster), who represents Little Saigon and surrounding communities, said his office has fielded much concern from Vietnamese American nail salon owners. "Their lives have turned upside down overnight," Ta said at a news conference Monday morning. "It is not just unfair, it is discrimination." The switch in labor law came back in 2019, when a sweeping law governing worker classification rules across various industries called Assembly Bill 5 was approved — a law that codified a California Supreme Court decision creating a stricter test to judge whether a worker should be considered an employee rather than an independent contractor. Read more: New California labor law AB 5 is already changing how businesses treat workers AB 5 sought to crack down on industries where many workers are misclassified as independent contractors, who are not afforded protections including minimum wage, overtime pay and workers' compensation that employees have access to. But various industries have said AB 5 targets them unfairly, creating an uneven playing field for businesses. Some professions received carve-outs, including doctors, accountants, real estate agents and hairdressers; while others such as truckers, commercial janitors and physical therapists must abide by the tighter classification rules. Some implementation of the law was staggered to give industries, including nail technicians, time to adapt. The lawsuit describes how the nail salon industry in California became dominated by Vietnamese workers in recent decades, when Vietnamese refugees began fleeing to the U.S. in large numbers in 1975 after the fall of Saigon in America's failed military intervention in Southeast Asia. The industry "has become synonymous with the Vietnamese community," the lawsuit said, with more than 82% of all nail technicians in California being Vietnamese American, and some 85% women. The businesses that filed suit include multiple locations of Blue Nail Bar, Happy Nails & Spa and Holly and Hudson Nail Lounge. Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Los Angeles Times
4 days ago
- Business
- Los Angeles Times
Vietnamese American manicurists, salon owners sue California alleging labor code is discriminatory
Several Vietnamese American-owned nail salons in Orange County have sued California, alleging the state's labor code is discriminating against their businesses. The lawsuit, filed in U.S. District Court in Santa Ana on Friday, alleges that the state's labor code violates the 14th Amendment's guarantee of equal protection under the law by forcing nail technicians to be classified as employees. The suit argues that professionals in the beauty industry for years have operated as independent contractors, renting space in a salon and bringing in their own clients. That changed at the beginning of 2025, when nail technicians in the labor code became required to be classified as employees, the lawsuit said. California Assemblyman Tri Ta (R-Westminster), who represents Little Saigon and surrounding communities, said his office has fielded much concern from Vietnamese American nail salon owners. 'Their lives have turned upside down overnight,' Ta said at a news conference Monday morning. 'It is not just unfair, it is discrimination.' The switch in labor law came back in 2019, when a sweeping law governing worker classification rules across various industries called Assembly Bill 5 was approved — a law that codified a California Supreme Court decision creating a stricter test to judge whether a worker should be considered an employee rather than an independent contractor. AB 5 sought to crack down on industries where many workers are misclassified as independent contractors, who are not afforded protections including minimum wage, overtime pay and workers' compensation that employees have access to. But various industries have said AB 5 targets them unfairly, creating an uneven playing field for businesses. Some professions received carve-outs, including doctors, accountants, real estate agents and hairdressers; while others such as truckers, commercial janitors and physical therapists must abide by the tighter classification rules. Some implementation of the law was staggered to give industries, including nail technicians, time to adapt. The lawsuit describes how the nail salon industry in California became dominated by Vietnamese workers in recent decades, when Vietnamese refugees began fleeing to the U.S. in large numbers in 1975 after the fall of Saigon in America's failed military intervention in Southeast Asia. The industry 'has become synonymous with the Vietnamese community,' the lawsuit said, with more than 82% of all nail technicians in California being Vietnamese American, and some 85% women. The businesses that filed suit include multiple locations of Blue Nail Bar, Happy Nails & Spa and Holly and Hudson Nail Lounge.
Fast Company
21-05-2025
- Business
- Fast Company
Target reveals drop in first quarter revenue, expects to slip for all of 2025
Sales at Target fell more than expected in the first quarter and the retailer warned they will slip for all of 2025 year as its customers, worried over the impact of tariffs and the economy, pull back on spending. Target also said that customer boycotts have also done some damage. The company scaled back many diversity, equity and inclusion initiatives in January after they came under attack by conservative activists and the White House. Target's retreat created another backlash, with more customers angered by the retailer's reduction of LGBTQ+-themed merchandise for Pride Month in June of 2023. Shares fell more than 4% before the opening bell Wednesday. Sales fell 2.8% to $23.85 billion in the quarter, and that was short of the $24.23 billion Wall Street expected, according to FactSet. Sales are also down from the $24.53 billion the company reported during the same period last year. Target said Wednesday that it now expects a low-single digit decline in sales for 2025, and earnings per share, which excludes the gains from the litigation settlements in the first quarter, to be anywhere from $7 to $9. For the year, analysts expect earnings per share of $8.34 on sales of $106.7 billion. Comparable store sales, those from established stores and online channels, fell 3.8%. That includes a 5.7% drop in store sales and a 4.7% increase in online sales. That reverses a comparable store sales increase of 1.5% in the previous quarter. The number of transactions across online and physical stores fell 2.4%, and the average ticket dropped 1.4%. Target said Tuesday that it couldn't reliably estimate the individual impact of each of the factors that were hurting its business. Target is setting up a new office to be led by Chief Operating Officer Michael Fiddelke would focus on making faster decisions to help accelerate sales growth. Current Chief Strategy and Growth Officer Christina Hennington will move into a strategic adviser role. Target is also intensifying efforts to entice customers who are nervous about the economy and inflation. The retailer says it is offering 10,000 new items starting at $1 — with the majority under $20. 'I want to be clear,' Target CEO Brian Cornell told reporters on a call Tuesday. 'We're not satisfied with these results, so we're moving with urgency to navigate through this period of volatility … We've got to drive traffic back into our stores or visits to our site.' Out of 35 merchandise categories including discretionary and essentials that the company tracks, it's gaining or maintaining market share in only 15, the company said. Target rival Walmart reported strong quarterly sales last week. The nation's largest retailer said it's already raised prices on some items due to tariffs and that more price hikes are on the way this summer when the back-to-school shopping season goes into high gear. For example, car seats made in China that currently sell for $350 at Walmart will likely cost customers another $100, executives said. Target didn't offer specifics on tariffs' impact on prices, but said that it was looking at different ways to offset those costs. 'We look at competition,' Cornell told reporters. 'We make adjustments literally each and every week, so we're constantly adjusting pricing. Some are going up. Some will be reduced.' President Donald Trump's threatened 145% import taxes on Chinese goods were reduced to 30% in a deal announced May 12, with some of the higher tariffs on pause for 90 days. Yet Americans were already pulling back on spending as they grow increasingly uneasy over the state of the U.S. economy. Companies including toy manufacturer Mattel, toolmaker Stanley Black & Decker and consumer products giant Procter & Gamble have announced higher prices or plans to raise prices because of the trade war kicked of by the U.S. Walmart was able to dodge some of the tariff damage other retailers are suffering because groceries account for about 60% of its U.S. business. Target is more reliant on discretionary items like clothing and accessories, with less than a quarter of its sales coming from groceries. Target has reduced the number of its store-label products sourced from China to 30% now from 60% in 2017. The company is on its way to reducing that number to 25% by the end of next year, the company said. Target is shifting sourcing to Guatemala and Honduras and is looking to sourcing in the U.S. Target is being pressured on other fronts as well. The company in January said it would phase out a handful of DEI initiatives, including a program designed to help Black employees advance their careers and promote Black-owned businesses. Conservative activists and President Donald Trump have sought to dismantle DEI policies in the federal government, schools, and at private businesses. The pastor of a Georgia megachurch who led a nationwide 40-day boycott of Target stores in response called last month for a continuation of that effort. The Rev. Jamal Bryant is seeking a reinvigorated commitment from Target on diversity, and he wants more support from Target for Black-owned banks and businesses. Target earned $1.04 billion, or $2.27 per share, for the period ended May 3. That compares with $942 million, or $2.03 per share, in the year-ago period. Target operates nearly 2,000 stores nationwide and employs more than 400,000 people.
