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Beauty salons and nail parlours are in the sights of immigration staff and labour inspectors after fears some are linked to organised crime and money laundering operations.
Compliance teams from the Ministry of Business, Innovation and Employment have launched a crackdown on rogue employment practices across much of the North Island.
Seventeen site visits have already taken place following a rise in complaints about beauty-sector businesses.
The unannounced visits are targeting nail salons, massage parlours and beauticians and will continue over the coming months.
The Labour Inspectorate said it is also gathering intelligence from the operation to inform future work in the sector.
Central region compliance manager, Margaret Meafua, said Operation Antic aimed to disrupt organised crime and prevent harm.
"I would say the beauty sector has been prioritised due to a growing number of complaints and referrals received by the Labour Inspectorate in recent years, particularly what we're seeing in the Waikato and Wellington regions," she said.
"Particularly around employment entitlements, getting the minimum wage, deductions, record keeping, which will form part of what we look at when we do go out on our visits.
"Intelligence has suggested it could be linked to other types of non-compliance, including organised crime, money laundering, and trafficking. But at the moment, that's what we're trying to establish through this initiative."
This is about ensuring fair treatment for workers and a level playing field for businesses doing the right thing, she said.
Potential consequences for companies found in breach include infringement and improvement notices, enforceable undertakings, and penalties through the Employment Relations Authority.
Staff would also provide education and support to help businesses understand their obligations.
Meafua said the MBIE teams were assessing the data collected during the Wellington visits and at this stage cannot provide details of issues of concern identified.
"Our teams will have a clearer picture of areas where non-compliance most needs to be addressed once this data has been processed and analysed."
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