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Michigan cosmetology school reaches $2.8M settlement in unpaid labor case

A judge has approved a $2.8 million settlement in a dispute over unpaid work by aspiring cosmetologists at a Michigan cosmetology school.

Attorney John Philo said Monday that about 1,500 people who worked as students at the Douglas J. Aveda Institute, such as sweeping floors, washing towels and stocking shelves, will receive compensation.

The Sugar Law Center for Economic and Social Justice filed a class action lawsuit alleging violations of federal labor law. Philo said the work the students did was not directly related to cosmetology education.

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“What this case shows is that there are limits to what we can ask of students,” said Philo, who worked on the case with attorney Kathryn Bruner James.

U.S. District Judge Judith Levy, who handed down a landmark ruling in favor of the students in the long-running case, signed the settlement on Dec. 21. The school did not accept responsibility.

An email seeking comment from the school's attorney was not immediately returned.

Michigan-based Douglas J. Aveda Institute has reached a $2.8 million settlement in an unpaid labor lawsuit.

Philo said compensation for former students enrolled in the settlement will be based on the number of hours worked. The lawsuit was filed in 2014.

“For some people, it could be thousands of dollars. For others, it could be a few hundred dollars on average,” he said.

Nearly 30% of the deal, or $794,000, will go to lawyers on behalf of the students.

At the beginning of the lawsuit, Joy Everline, who completed the program in 2012 and passed the state licensing exam, said she always had laundry to do and “load after load of towels, washed and dried, of course.” , fold it, and put it in the washing machine.'' The cabinet they belong to. ”

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Schools are located in Ann Arbor, East Lansing, Grand Rapids, and Royal Oak. Tuition for the cosmetology program is over $20,000.

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