That “team player” thing is enough to make anyone’s head explode. I HATE that argument and anyone who dares to say that to me better duck for cover or hope my chair’s bolted to the floor, because I will throw it at them.

Anyways, corporate salons are generally a safe bet if you don’t want to be exploited in the salon. While they don’t pay as well (or at least, appear not to pay as well) they do comply with federal wage and tax laws. Additionally, they often provide options for upward mobility that private facilities aren’t capable of offering.

Hi Tracy! I would recommend reading Know Your Rights. That post goes into everything you need to know about legal compensation. Regardless of how you’re being compensated, your employer is required to pay you at least the prevailing minimum wage (plus any applicable overtime) for each hour you’ve worked in the pay period. So, “commission-only” isn’t a thing. It’s commission versus (or plus) hourly, or it’s illegal.

As for the pay changes, any reduction in wages must be communicated in advance of any work being performed in that pay period. If you aren’t being informed until after the work has been performed, it’s not legal.

I’m so happy to hear that you’re not going to stand for it. Too few professionals have the same integrity, which is why this kind of garbage continues. I’m the same way. I would rather work retail than work in a salon for an exploitative salon owner. I won’t facilitate tax evasion, wage theft, or unfair competition–and I’m not too proud to work in another industry if that’s what it takes to pay my bills.

What those owners in your area don’t realize is that they’re creating an opportunity for someone to come in and crush them.

All it would take to lure all their employees out the door is a compliant compensation system. The clients would follow the professionals, and it’s game over for them. I’ve seen it happen because I’ve personally helped new salon owners do just that, lol. Maybe one day, you’ll be that new salon owner. 🙂

I would recommend going to an employee rights attorney, as they’re your best resource and are more likely to either a.) get things moving in a timely fashion, or b.) give you a strategy for working with enforcement agencies more effectively.

How she manages the gift certificate revenue on her end really isn’t relevant to anything so long as the renters are being paid upon redemption. It’s legal for her to run her business finances however she chooses (you’re right–business owners aren’t required to hold gift certificate revenue in a trust account or anything; they’re just responsible for ensuring that they have the resources to ensure redemption). Likewise, her poor financial management isn’t necessarily your concern UNLESS you want to approach her about it as a friend and a tenant who hopes to continue to have a place to conduct business. As far as I know, there are no laws against what she’s doing, but if you’re starting to see late payment notices–and you’re close enough to her personally to approach her about it–I’d recommend doing so ASAP, in private. Just prepare yourself. Some people are very sensitive about money issues and don’t respond well, even when those involved are coming from a position of genuine concern.