Some barbers work as employees of shop owners on a salary basis, and generally there
is no question about their employment status. For instance, barbers who perform services
under a lease agreement in a barbershop that has the right to direct and control the
way they perform their services are employees of the shop. However, some barbers work
under percentage agreements, which may raise questions about their services.
Under the typical percentage agreement, a shop owner provides the barber with a space
or chair. The barber furnishes razors, combs, scissors, and sometimes uniforms, but
the owner provides all other equipment and supplies. Barbers work with other barbers
in the shop. To consider the space and facilities the owner furnishes, the barber
agrees to let the owner retain a certain percentage of the earnings, except for tips.
Either party may terminate the relationship on short notice. The owner may terminate
the relationship if the barber fails to conform to the provisions of the agreement
or the shop rules concerning work hours, uniforms, smoking, wasting time, etc.
The barber's union and shop owners may impose the shop rules. The barber does not
advertise, and the barber's name does not appear in the title of the shop. Those who
work under such agreements, or under substantially similar conditions, are employees.
Factors that may indicate when a barber is an employee:
the barber does not handle his or her sales receipts;
the barber does not make his or her appointments;
the barber has a required work schedule or hours;
the barber must wear a uniform;
the owner provides towels or smocks; and
the owner provides training.