California Manicurists May No Longer Be Booth Renters
As of January 1, 2025, California will no longer allow nail salons to have independent booth renters operating in their salons and all manicurists will be classified as employees!
This means all nail techs in California will have to be transitioned into W-2 employees, else the establishment owner will face not only regulatory fines but be prey to private litigation by “AB 5” head-hunting law firms specializing in these harassing lawsuits.
The PBF have been witness to dozens of such private-action lawsuits, in which small businesses have been financially strapped — and in some cases ruined — by these costly legal threats. And because of the stacked law against them under the provisions of the now infamous “AB 5” law, there’s no winning these challenges in court (and they are further insulted by having to pay the plaintiff’s legal expenses … meaning the greedy law firms who’ve been profiting off this new law since it was passed in 2020).
Fortunately until now, our industry has been shielded from AB 5, because we worked to get a legal carve-out for hair, skin and nail workers and barbers when that law was working it’s way through the Legislature in 2019. Unfortunately, due to the Legislators’ concern about one segment of our industry, manicurists and their establishment owners were only given a temporary exception that is set to expire this coming January.
The PBF have been lobbying California lawmakers and powerful lobbying interests — including labor unions (the primary defenders of AB 5 and ending all forms of independent contracting) — to allow the manicurist sunset date exception to be extended, but to no avail. To illustrate our challenge, the author of AB 5 is now the President of the most powerful union organization in Sacramento, the Labor Federation, so any wonder why this has been an uphill battle?! And with only one month left in this year’s legislative session, we’re not hopeful we’re going to be successful.
This means on January 1, 2025, any nail technician may be lured into filing legal action against their establishment owner for misclassifying them as an independent worker and not an employee, demanding back pay and other legal entitlements. And the considerable state labor regulatory apparatus could also come crashing down on those same salon owners, requiring withholding taxes and Workers’ Comp premiums retroactive to January 1, 2025.
This could spell disaster for this segment of our industry, which overwhelming relies upon the booth rental model and who won’t be able to absorb the additional costs of transitioning all of their manicurists into W-2 employees, including payroll taxes and Workers’ Comp premiums. And that doesn’t include the considerable costs of potential lawsuits for non-compliance post-January.
The PBF will continue to push lawmakers to extend the January 1 deadline before they adjourn in September, but if we are unsuccessful, we will need to martial this segment of our industry to rise up and demand that their elected representatives treat them justly and equally as the other two segments of our industry — which enjoy a permanent exception from AB 5. This grassroots campaign will need to begin in earnest come the new legislative session that begins next year. So stay tuned for your marching orders! [Hint: get to know your locally elected State Assembly member and Senator, now]
If you’d like to read more about this legal quagmire, you may see the relevant sections of the law here:
Business & Professions Code Section 2778 (b)(2)(L):
And to find out who represents you in Sacramento, go here:
Covid Relief Still Available for Self-Employed & Employers!
As anyone who’s been following the Professional Beauty Federation knows, when Covid struck we hit-back on your behalf! If you’re an employer or self-employed pro in any of the 50 states who hasn’t yet claimed Covid-related federal tax credits, you can skip the following background info and go directly to …
Finally Covid $ for Independents/Self-Employed!
Booth/Suite Renter *** Self-Employed hair/skin/nails professional *** Independent Contractor/1099 FINALLY there is Covid Relief $ for you! You’ve probably heard all the adds aimed at employers for “ERC” relief funds. We at the PBF led the way over a year ago in this regard and have successfully been helping thousands of …
Here is My Why. Personal Story from Cancer Survivor Leonie Waite, Hairstylist and Owner of Franzine Beauty, Talking About Living Benefits
My name is Leonie Waite. Here is my why. At the tender age of sixteen, I first realized I wanted to be an entrepreneur. I was always making money finding odd jobs because my mom was a single parent of six kids. I became successful and started making great income …
PBF Now Offers Virtual Healthcare Services
The Professional Beauty Federation (PBF) is pleased to announce a strategic partnership with GVC Health Tech and it’s disruptive App product, Give Virtual Care, to offer for the first time to beauty and barbering professionals a turn-key affordable virtual healthcare membership solution that includes unlimited, on-demand, virtual urgent and general …
Introducing Pro Beauty Pay™ – Our Industry’s Merchant Payment Solution
Over the next few weeks, we will be rolling out some exciting new partnerships that pass considerable savings and valuable benefits to our beloved followers. We hope some of these new offerings will be of value to you, as we worked hard to negotiate the best deals for our barbering/beauty …
PBFC Guides Employers to New Federal $$$
Beauty Federation Announces New Service to Help Salons and Beauty Owners with New Government Tax Credit Opportunity Up to $33,000 Per Employee If You Qualify! July 15, 2021 — Sacramento, CA — The Professional Beauty Federation of California is pleased to announce the launch of a turn-key, full services platform …
SB 803 and Its Impact Explained — Podcast Interview
Hair Game podcast host and Salon Republic founder, Eric Taylor, interviews PBFC Legal Counsel/Advocate Fred Jones about the potential implications of our beloved industry if SB 803 as currently drafted becomes law. This long-format interview answers many of your questions about this dramatic reform legislation, including not only the threatening …
SB 803 Threatens Our Professionalism
Just last week, SB 803 (Roth — Riverside County) was gutted-and-amended into a bill that would usher in major and troubling reforms. We are calling on everyone earning a living in the barbering/beauty industry to reach out to your state representatives and express your concerns. In short, please help us #StopSB803 …
From PPP Funding … to PPP Forgiveness
Anyone who has followed our recent work will know that the PBFC established an unprecedented, nationwide program to get our industry badly needed and well-deserved PPP relief funds from the federal government. That effort helped guide thousands of behind-the-chair professionals and establishment owners to this little pot of gold, something …
