How AB 5 Affects Salons in California


Article Posted on 09/25/2019


Salons were one of the relatively few industries to receive some exemption from the newly signed AB-5.  The bill’s language lists ‘workers providing licensed barber or cosmetology services’ and further refines that to ‘Services provided by a licensed esthetician, licensed electrologist, licensed manicurist, licensed barber, or licensed cosmetologist’.  However, that exemption came with some constraints.

In order to be exempt, the individual providing the service must:

  • Set their own rates
  • Be paid directly by their client
  • Process their own payments
  • Set their own hours
  • Have complete discretion over which and how many clients they will service
  • Have their own book of business
  • Schedule their own appointments
  • Maintain the necessary business licenses for services offered
  • Provide a 1099 for rent paid for their space

Additionally, the exemption for licensed manicurists expires January 1, 2022.

AB-5 becomes effective January 1, 2020.  The complete bill can be found here https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB5

 

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