Many Spas Are Classifying Estheticians As Independent Contractors When They Are Actually Employees

 

It is sad, but in this industry many spas are calling employees independent contractors when they are actually employees. Why would they do this? The better question is why wouldn't they do this if they can get away with it? They can circumvent around employment taxes and they don't have to pay into FICA or follow any employment laws if their staff is classified as an independent contractor.

So how do I know if I am actually an independent contractor or an employee?

An independent contractor usually means someone who is getting paid a commission split on services and or paid by service. This means the contractor is working independently within a business and the owner and independent contractor agree to certain terms. In most cases, this is put in writing to protect both parties. Generally the independent contractor determines their own hours, and they do not report to anyone at the business with the exception of working as a team with the owner for their mutual benefit. The business cannot require or demand that the independent contractor work certain shifts--they can request that they work within certain hours, but this all needs to be agreed upon in writing prior to the start of the business relationship.

What is an employee in a spa?

An employee is required to work certain shifts and days/hours a week...an employee must get all vacations approved. An employee is paid by the hour and works directly under the supervision of a designated manager.

Many spas are illegally classifying employees as independent contractors to keep staff on hand at all times without having to pay hourly rates. They avoid paying FICA and circumvent employment laws. The key difference is when an employer requires an esthetician to work a certain shift ...when you only get paid per service and not hourly you are not required to stay onsite unless you are getting paid per hour.

This seems to be a trend in the beauty industry these days. Why wouldn't these employers try it? If they can get an esthetician to agree to work from 10-7PM without paying them a dime unless there are services rendered then they always have staff on hand for walk in's without having to pay for it. They lose nothing! They have an esthetician on hand who might make good money if there is a ton of business, but on slow days and only one or two clients come in the esthetician might earn only a few dollars per hour or nothing per hour depending on the situation. These spas will tell estheticians how busy they are, but the reality is it isn't their bills that can't be paid with working in such an unpredictable employment situation.

The worse part is that this is illegal and unethical. They can't have it both ways. Either they hire an employee to be on staff at all times and risk losing some money during slow times, or they pay the estheticians an hourly rate which is fair and equitable.

My question to these employers is "Would you work for free?"

We all know the answer of course, they absolutely wouldn't work for free. These greedy spa owners are finding a loop hole in the term "independent contractor" by abusing the system and not paying employees an hourly fee when one is due. If you encounter this during an interview, please let these employers know it is illegal. If you are working in a situation like this turn them in to the Federal Employment Office. No one deserves this kind of treatment, and these greedy spa owners are abusing their power and taking advantage of estheticians who are so desperate for a job.