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