Posted on 09/09/2018 2:29:00 PM PDT by lowbridge
Some small businesses are scrambling to figure out how to stay afloat after a high court ruling.
A recent California Supreme Court decision is changing the way independent contractors are classified, and it’s already having a big impact on local shops. May fear it will hurt millions of workers and affect businesses’ bottom lines.
The work doesn’t stop at Downtown Sacramento’s Bottle and Barlow, even if it became a one-man shop.
“I lost my entire staff,” said owner Anthony Gianotti.
He says all seven of his barbers quit after a state supreme court ruling that will change their way of work.
“It doesn’t just affect my business, it affects every independent contractor in the state of California,” said Gianotti.
Historically, the cosmetology industry, which includes barbers and hair stylists, have been classified as independent contractors, but that won’t be the case anymore. Gianotti explains the new rule.
“That you cannot classify someone as an independent contractor if they offer the same service that is the primary business of the business.”
-snip
So, basically, a barber can no longer work in a barbershop as an independent contractor, where they typically set their own hours and pay. Instead, they’ll now have to become employees of the business on an official payroll.
“Which is insane for a small business, like this. We can’t afford to have a bunch of employees. What are you going to pay them you know, minimum wage?” said Victory Ink Tattoo owner Ristina Rodriguez.
(Excerpt) Read more at sacramento.cbslocal.com ...
I don’t see this as anything new. As a contractor for four decades I saw this all the time. I always had actual employees but many called their people independent contractors. It is legal if they simply get their own Federal ID Number and a basic liability policy.
If they don’t do that the employer can be hit with some massive fines and will need to pay back taxes for up to seven years. That means SS, FICA, state, unemployment and Work Comp.
The independent contractors probably don’t need work comp. Here in Minnesota, as an owner, I don’t need work comp for me or any family employees.
Sort of "from each according to his ability, unto each according to his need"?
Much like in NY I’ve been told that small business who pay rent must give the landlord a form to file out claiming the rent for the year and the small business owner must submit this form with his taxes. The business owner is now responsible for the land lord claims to rent. If not filed both can be fined heavily.
This is the state which Hussein asked to “return sanity”
Other liberals fighting this liberal hypocrisy create a law to prevent this, but the law paints with a huge brush and doesn't take into account all situations such as that with barbers.
Hypocrisy followed by idiocy. Liberalism in action.
Sounds like the unions want to unionize them for their union dues.
More black robe tyranny.
Sh!t, it’s everywhere the fed state appealet and some Supremes (Diana Ross excluded).
5.56mm
Business is very much like a living organism. It will find a way.
I used to be in the business of getting around onerous legislation. There is almost always a way.
The real problem for CA is that it keeps creating an image problem for itself.
It’ll be worth it if it destroys H1-Bs.
Historically, the cosmetology industry, which includes barbers and hair stylists, have been classified as independent contractors, but that won’t be the case anymore... a barber can no longer work in a barbershop as an independent contractor, where they typically set their own hours and pay. Instead, they’ll now have to become employees of the business on an official payroll. “Which is insane for a small business, like this. We can’t afford to have a bunch of employees. What are you going to pay them you know, minimum wage?” said Victory Ink Tattoo owner Ristina Rodriguez.
Does the ruling apply to transgender-owned businesses? Ew, I used transgender and business in the same sentence. Ew, twice... Thanks lowbridge.
Serve bottled water water. Charge $25 each which includes a free haircut.
Guys a hair shaver from Walmart is $13 and finishing scissors on Ebay are $8.
You’ll get really good after going it about 5 times.
I give myself a haircut every single week and it costs me NOTHING.
If I still don’t like it? I dink around with it more and I don’t feel like I’m being picky:
The barber is ME.
Would you pay someone to brush your teeth?
i think it is way bigger than barbers.
PG&E hires contractors to do what their linemen are capable of. I think they farm out line inspectors, meter readers, etc. Technically, they will have to take them all on as employees.
I have not seen an actual AT&T guy in years. They are all contractors now.
What about truckers who lease their rigs or sub for larger businesses?
When the city water company contracts for a new pipeline? At one time, that was done by the utility.
At auto repair shops and some dealreships, the mechanics are independents now. Will they have to be hired?
There are tons of positions like this.
I guess the price of a haircut is going up significantly.
See my post 21. I don’t see this as anything other than following the existing law.
In the construction business the trend had bad consequences.
The employer doesn’t maintain Workmen’s Compensation Insurance or insure the employee’s vehicles because “they have no employees” and damage on the job site is not their problem. They don’t follow drug policy, wage guidelines, proper overtime regulations, DOL requirements, or proper immigration employee checks.
The property owner becomes a deep pocket for every accident and the small contractor plays, “its not my problem.”
If people don’t want employees, start a partnership.
There is nothing, absolutely nothing, that the government won’t screw up.
Photos of your handiwork woulr help us decide.
One more reason not to do business in Kommunist Kalifonia.
That's precisely their goal. To throw as many monkey wrenches as they can into the engine of our Capitalist system until it collapses. Then they will come to the rescue and start anew with their preferred system: Socialism, followed by Communism.
I wonder who this owner votes for - I would guess Team Blue.
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