Lawsuit alleges California discriminates against Vietnamese manicurists in labor law

SANTA ANA, Calif. (KABC) -- Nail salon workers are suing the state of California and an Orange County state assemblyman is spearheading the federal lawsuit that demands equal treatment under the law.

During a press conference Monday, Assemblymember Tri Ta announced the lawsuit which alleges changes in labor law implemented at the start of the year discriminate against Vietnamese manicurists.

Manicurists at the Happy Nails salon in Newport Coast said they have had to walk away from their jobs as state law forces them to become W-2 employees.

Nancy Vu is a receptionist at Happy Nails. Vu was among the dozens of nail salon workers who attended the press conference in support of the lawsuit.

"This has been extremely challenging to find a manicurist willing to be a W-2 employee," Vu said.

That challenge started happening across the state at the start of the year because of a change in California Labor Code.

Licensed manicurists are no longer allowed to work as independent contractors under the 1099 tax code. They're now salon employees.

That doesn't work for Emily Micelli, a manicurist of more than two decades.

"The 1099 (means) I work for myself. I can create my own business within a business," Micelli said.

For many working mothers, like Katie Le, it's about choice and flexibility.

"I love what I'm doing. I choose my hours because I have... young kids and I could take them to school," Le said.

Assemblymember Ta announced the lawsuit that alleges racial discrimination.

"It is not just unfair. It is discrimination," Ta said.

Ta said the labor code change does not affect others in the beauty industry like barbers and cosmetologists, but instead targets nail salon workers.

"Eighty two percent of whom are Vietnamese and 85 (percent) of who are women," Ta said.

Jenny Tran is a store operator at Holly and Hudson in Long Beach.

"It's that freedom that allowed them to pretty much support their family. It is like a big part of our culture to everybody-come here, you know, being independent, doing their own thing," she said.

Happy Nails staff said they've lost half a dozen manicurists since the change in labor code was implemented, and they expected more would have to leave if they aren't able to return to their independent contractor status.