BILL NUMBER: S5212
SPONSOR: SCARCELLA-SPANTON
 
TITLE OF BILL:
An act to amend the general business law, in relation to the licensing
of nail salons
 
PURPOSE OF BILL:
The purpose of this bill is to raise standards and improve working
conditions in the nail salon industry.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1- amends section 400 of the General Business Law to define
"nail salon" as an appearance enhancement business, which practices nail
specialty.
Section 2- amends section 404-b of the General Business Law to require
owners and operators of nail salons to be trained and provide training
and educational materials to their workforce on issues such as wage and
hour laws and health and safety information. The Secretary of the
Department of State shall convene a training committee to prepare the
written educational materials and curriculum for the training, which
will be required for all nail salon workers, managers, and business
owners.
Section 3- adds a new section 406-a of the General Business Law to add
licensing requirements for Nail Salon operators. This new section:
potential licensees or renewals must apply to the Secretary of State
unlawful to operate without a license licenses are valid for 2 years $60
license/renewal fee renewals must attest that they are compliant with
all laws employees input shall be a consideration for licenses/renewals
Section 4- adds a severability clause.
Section 5- Provides for a 90 day effective date.
 
JUSTIFICATION:
There are over 40,000 nail salon workers in New York State, most of whom
are immigrant women of color. The industry continues to be plagued by
poor working conditions, including wage theft, exposure to toxic chemi-
cals, and long hours without legally mandated breaks. A recent report by
the NY Nail Salon Workers Association found that over 80 percent of nail
salon workers are experiencing wage theft, losing an average of over
$9,000 per year. According to Census data, the number of nail salons in
New York surged through the 2000s, far outstripping the rest of the
country, and the New York Department of Labor projects that employment
of nail salon workers will grow almost 20 percent over the next ten
years in the state, far outpacing the average of other industries.
In the current business licensing process, there are no good mechanisms
to ensure employer compliance with labor and health and safety laws,
which allows unscrupulous businesses to continue to break the law and
puts the onus on workers to file complaints. These practices give bad
actors a competitive advantage and fuel a race to the bottom in the nail
salon industry. Lawlessness in this industry is a danger to workers and
consumers. Nail salon workers will be phased out of the subminimum wage
(or "tipped wage") structure by the end of 2020, but workers need stron-
ger mechanisms in place to ensure that employers are complying with
these new changes. Reforming the business licensing process to use
licensing and renewal as mechanisms to ensure owner compliance with
labor and health and safety laws is in the public interest. These amend-
ments will provide a real opportunity to hold bad actors accountable,
shift competitive advantage to salons that are complying with the law,
and raise standards industry-wide.
 
EXISTING LAW:
Article 27 of the New York State General Business Law governs the issu-
ance of appearance enhancement licenses and authorizes the Secretary of
State to order the cessation of unlicensed appearance enhancement activ-
ity and to register trainees in the practice of nail specialty. Appear-
ance enhancement business licenses are valid for four years and may be
renewed for an additional period of four years upon payment of the
renewal fee, without further examination. Article 27 of the New York
State General Business Law requires workers to be trained and licensed
in the practice of nail specialty. It does not require training for
business owners.
 
PRIOR LEGISLATIVE HISTORY:
2024; Held in Consumer Protection Senate Committee.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
90th day

Statutes affected:
S5212: 400 general business law, 404-b general business law