If the salon owner ensures that you’re paid the prevailing wage at the end of the pay period, it’s legal. If they aren’t guaranteeing wage compliance, it is not. You can learn more about that here.

Typically no, but you may want to inform them anyways. At the very least, ensure your lease doesn’t prohibit subletting.

Hi! I don’t recommend utilizing her as an independent contractor on a routine basis like that. There are two alternatives to consider:

a.) I’d recommend having her pay commission in lieu of rent UP TO a set rental rate. This offer would be limited to a time period of your choosing (generally, 3 months is sufficient). She would be collecting the money from her clients, though, so there’s some trust involved. She has to be made to understand that she will be running her own business, which means it will be her job to supply her own clients, cover her own product/equipment costs, insure herself with a PLI policy (and provide proof to you that the policy exists), and handle all of her own accounting. She doesn’t get to be self-employed and expect the benefits of employment too.

b.) She establishes her own freelance microblading business. This means having her own website, social presence, business license, business phone line, and merchant services account (just as it would if she were renting). The two of you arrange periodic microblading events, each of which has its own separate event agreement. The two of you would agree to terms in advance, including her rate. You’d pay a deposit, she’d show up to do the work, and you’d pay her the rest after the event concludes. These instances would have to be planned and coordinated. No more “dropping in.”

In instance A, you would not be advertising her services whatsoever. That would be on her. In instance B, you could advertise the event, just so long as you’re clarifying in those advertisements that she’s a guest artist. (Or you could have her take that responsibility, or you could share it–it’s up to the two of you to work that out when you negotiate the event agreement.)

Any situation that has an “independent contractor” routinely showing up to your salon isn’t a safe one. You would be assuming all of the liability for little to no reward.

So I have a renter that’s new to her industry (microblading) and is wanting to switch to a commission split (independent contractor) which I’ve never had before. (We are a lash studio) She’s concerned about committing to a flat rental fee and I don’t mind helping her out. Can we do it this way? She comes and goes as she pleases, books her own clients, has her own supplies, we do refer some clients to her. We definitely don’t have enough demand through our clientele to hire a “microblader” or Permanent Makeup Artist.

Also, if we can have it as an independent contractor relationship, can we advertise her services? Who supplies the clients? Me or her or both? And how do the bookings work? If she finds a client and wants to bring her in, is that acceptable? If she gets busy enough and wants to switch back to a flat fee rent can we do that?

Just trying to learn all I can.

Thanks!

No. I recommend your wife read this post immediately, and this one.

That doesn’t seem right to me at all, but my recommendation is to speak with an employee rights attorney in your area and tell them what’s going on. As an alternative, you can tell the salon owner you want the IRS to provide clarification, and so you’ll ask them to by filing an SS-8 form and having them investigate whether or not the classification is appropriate. Should they get defensive about you doing so, you’ll know that they likely know that what they’re doing isn’t an appropriate use of the IC status.

I am currently an assistant at my salon. I am about to finish my cutting program. The salon wants me to assist part time and be a independent contractor part time while I do the color program. Is this legal?? What should I do?