Former employee alleges C&C Trading Co. failed to pay overtime and filed fraudulent tax returns

Floyd County Courthouse
Floyd County Courthouse
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A recent legal filing claims that a local beauty supply store operator failed to pay required overtime wages and submitted inaccurate tax documents on behalf of a former employee. The complaint was submitted by Hyun Ik Shin in the United States District Court for the Northern District of Georgia on March 25, 2026, naming C&C Trading Co., Inc., doing business as Beauty & Beyond, and Peter Chi as defendants.

According to the complaint, Hyun Ik Shin worked as a cashier for C&C Trading Co. at its Decatur location over a period spanning from August 2022 to February 28, 2026. The plaintiff alleges that during this time, they were regularly scheduled to work an average of fifty-five and a half hours per week but received only a fixed weekly wage regardless of total hours worked. The lawsuit states that some wages were paid in cash in addition to regular paychecks.

The plaintiff asserts that their duties did not require discretion or judgment and that they were classified as non-exempt under the Fair Labor Standards Act (FLSA). As outlined in the filing: “Defendants failed to provide Plaintiff with one and one-half times the regular rate of pay for Plaintiff’s work in excess of forty hours in a workweek.” The complaint further alleges that this practice continued throughout Shin’s employment, with weekly wages reported as approximately $1,400 until February 12, 2025, then increasing to about $1,600 thereafter.

In addition to claims regarding unpaid overtime compensation under FLSA provisions (29 U.S.C. § 206), Shin also accuses C&C Trading Co. and Peter Chi of submitting false or incomplete wage information on federal tax forms—including Internal Revenue Service Form 941 (Employer’s Quarterly Federal Tax Returns) and Form W-2—during periods when Shin was employed by them. According to the document: “When Defendants filed their Internal Revenue Service Form W-2 for the period Plaintiff was employed with Defendants, they omitted or understated the amount of wages paid to Plaintiff.” The complaint contends these omissions were both false and fraudulent.

The legal action seeks several remedies from the court. These include an order finding that defendants violated specific sections of FLSA related to overtime payment requirements; an award for unpaid wages; liquidated damages equal to any proven losses; attorney fees; costs associated with litigation; civil damages under federal law governing fraudulent tax filings (26 U.S.C. § 7434); as well as any additional relief deemed appropriate by the court. Specifically regarding fraudulent tax filings, Shin requests damages “up to and including any actual damages sustained, or in any event not less than $5,000 per fraudulent filing” along with reasonable attorney’s fees.

The plaintiff is also demanding a jury trial on all claims where such right is available under federal law.

Legal representation for Hyun Ik Shin is provided by Brian Kim PC of Duluth, Georgia. The case identification number is 1:26-cv-01602-JPB.

Source: 126cv01602_Hyun_IK_v_C_&_C_Complaint_Northern_District_of_Georgia.pdf



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