Washington Lawmaker "Cuts" Plan to Eliminate Work Comp Exemption for Hairdressers
Hairdressers across Washington took their 'political scissors' to proposed legislation to eliminate a business model they’ve used for years. Washington state lawmaker dropped a proposed bill that would have eliminated the workers' compensation exemption for barbers, hairdressers and cosmetologists.
Senate Bill 5326, intended to prohibit hair salons and barber shops from contracting out space to independent stylists, has been dropped after negative comments from across the state, according to a press release. Many smaller salons lease or sublease chairs in the shop to independent hairdressers who are licensed individually instead of being directly employed by the shop owner. Several salons in have conducted business this way for decades. The arrangements allow them to avoid paying unemployment and workers compensation taxes. But other businesses operate on this model as well.
Source: workcompcentral.com and tdn.com