IC’s are Independent Contractors. I’ve written several posts explaining how that employment status works and what it means. You can find all of them here. 🙂

Hi Tina, What are IC’s ? Thanks.

They are absolutely shady people. They’re paying you under the table, which means your income isn’t being reported. This is a huge problem for you and them. Reach out to them and ask them how you were classified for tax purposes. If you were considered an “independent contractor,” you will need a 1099 form from them. Unless you were misclassified (which I’m guessing you totally were since 99.9% of the IC’s I deal with are not actually renters), you’ll owe the IRS 15.3% of your gross earnings for self-employment tax. If you were classified as an employee (which I highly doubt), they need to provide you with a W-2 form. If the income wasn’t reported, you could have intense difficulty proving you made any money at all, so if you apply for a loan, a mortgage, or an apartment, you may not be approved because you can’t prove you earned money that wasn’t reported. I highly recommend that you search this site using the terms “misclassified,” “independent contractor,” and “know your rights.”

My question is… I don’t remember if I ever signed any paperwork and I have no paper trail on my end that I ever even worked there. They didn’t seem like shady people so I think I just may not understand how things worked but what am I supposed to do during tax time? Should I reach out to my old boss?

It’s not. I have a post here that has links to each state’s wage theft laws. NYC has some of the toughest in the country regarding wage theft and misclassification.

At best, it’s a terrible practice. Comping services sets a precedent, and soon word will spread that the salon will give away services to unhappy clients.

Whether or not it’s legal depends on the state, IF you’re being compensated in accordance with federal labor laws. So, assuming you’re classified appropriately as an employee and the salon owner is ensuring you’re making at least minimum wage for each hour you’re working, it may be prohibited by state law under their wage deduction/wage theft statutes. If it’s not (some states like Florida don’t have any wage theft protections for employees), then you have to rely on employment contract terms. If you don’t have it expressly prohibited in your employment contract, and you’re being paid in accordance with the FLSA, you likely don’t have any recourse. In any case, I wouldn’t put up with it. I’d demand the owner compensate me, then have them agree to never arbitrarily deduct money from my check again–or I’d find another job.

There are so, so many issues here. You definitely need a new job.
1.) 50/50 commission, you’re not getting paid in accordance with the FLSA. HUGE problem.
2.) Unprofessional employer. That’s an issue that won’t resolve itself and will continue to damage your reputation and hurt your ability to build.
3.) Irresponsible employer. You’re right. You aren’t a manager, and she needs to set an example. It’s unacceptable for her to burden you with her responsibilities without compensating you for it.
4.) Employer who competes on the floor. Her ass doesn’t belong there unless it’s absolutely necessary. Taking a client from you to do anything other than shampoo or prep her for you is BULLSHIT. She has NO RIGHT to take money out of your pocket like that. She’s working against you. Completely unacceptable.
5.) Free services?! #byefelicia

You need a new job. For sure. I wouldn’t waste another day there if I were you.