AB-5 For Hair Salons
AB-5 For Hair Salons
Author: Jenna White | San Francisco Hairstylist
February 5th, 2020
February 5th, 2020
Groundbreaking new California legislation, which took effect in January 2020, is impeding many companies from claiming workers as independent contractors. A-B5 passed both the Senate and Assembly, and Governor Gavin Newsom signed it into law. A-B5 codifies, clarifies and grants exemptions to a 2018 California Supreme Court decision called Dynamex. Both A-B5 and Dynamex make it harder for companies to label workers as independent contractors. The San Francisco Chronicle provided a great overview of common questions on this in September of 2019 titled "AB5 gig work bill: All your questions answered".
According to the article “Dozens of professions won exemptions to A-B5, usually on the grounds that they set or negotiate their own rates, communicate directly with customers, and make at least twice minimum wage. They include doctors, psychologists, dentists, podiatrists, insurance agents, stock brokers, lawyers, accountants, engineers, veterinarians, direct sellers, real estate agents, hairstylists and barbers, aestheticians, commercial fishermen, marketing professionals, travel agents, graphic designers, grant writers, fine artists, enrolled agents, payment processing agents, repossession agents and human resources administrators. There are exceptions for photographers, photojournalists, freelance writers, editors or newspaper cartoonists who make 35 or fewer submissions a year, as well as for some types of business-to-business activities".
The Los Angeles Times published a more recent article in December of 2019 titled "New labor laws are coming to California. What’s changing in your workplace?", which highlights additional laws passed alongside AB-5 during 2019. These laws look at reducing economic inequality and giving workers more power in their jobs. They also protect against hairstyle discrimination in the workplace, specifically afros, braids, cornrows and dreadlocks. Sadly, other states have been slow to follow suit. For example, in Texas, high school student DeAndre Arnold was subjected to in-school suspension for having hair worn in dreadlocks longer than the school's rules allowed for boy's hair (USA Today article on this story here).
CBS's video below shows how Uber and Lyft are fighting A-B5: "The new year means the start of a new labor law in California meant to protect more than a million freelance and gig-economy workers. They do jobs like pet sitting, cleaning and ride-share and delivery driving. Supporters of the [A-B5] law say it pushes companies to recognize contractors as employees, giving them access to benefits. But Uber and Postmates are suing the state, hoping to stop the new law".
The bottom line is that stylists/barbers are exempt from AB-5 and have a choice between renting and employee status if certain criteria are met by the shop owner and barber/stylist. This supports barbers/stylists having power over their career trajectory, which is the reason many chose to join the profession in the first place.
According to the article “Dozens of professions won exemptions to A-B5, usually on the grounds that they set or negotiate their own rates, communicate directly with customers, and make at least twice minimum wage. They include doctors, psychologists, dentists, podiatrists, insurance agents, stock brokers, lawyers, accountants, engineers, veterinarians, direct sellers, real estate agents, hairstylists and barbers, aestheticians, commercial fishermen, marketing professionals, travel agents, graphic designers, grant writers, fine artists, enrolled agents, payment processing agents, repossession agents and human resources administrators. There are exceptions for photographers, photojournalists, freelance writers, editors or newspaper cartoonists who make 35 or fewer submissions a year, as well as for some types of business-to-business activities".
The Los Angeles Times published a more recent article in December of 2019 titled "New labor laws are coming to California. What’s changing in your workplace?", which highlights additional laws passed alongside AB-5 during 2019. These laws look at reducing economic inequality and giving workers more power in their jobs. They also protect against hairstyle discrimination in the workplace, specifically afros, braids, cornrows and dreadlocks. Sadly, other states have been slow to follow suit. For example, in Texas, high school student DeAndre Arnold was subjected to in-school suspension for having hair worn in dreadlocks longer than the school's rules allowed for boy's hair (USA Today article on this story here).
CBS's video below shows how Uber and Lyft are fighting A-B5: "The new year means the start of a new labor law in California meant to protect more than a million freelance and gig-economy workers. They do jobs like pet sitting, cleaning and ride-share and delivery driving. Supporters of the [A-B5] law say it pushes companies to recognize contractors as employees, giving them access to benefits. But Uber and Postmates are suing the state, hoping to stop the new law".
The bottom line is that stylists/barbers are exempt from AB-5 and have a choice between renting and employee status if certain criteria are met by the shop owner and barber/stylist. This supports barbers/stylists having power over their career trajectory, which is the reason many chose to join the profession in the first place.
Further Resources
The information included here should not be treated as legal advice. Seek council from an attorney for further guidance.
- CA.gov Labor & Workforce Development Agency: Assembly Bill 5 (Employee & Employer Resources)
- The San Francisco Chronicle: Gig economy faces shakeup after California high court ruling, May 2018
- CA Board of Barbering and Cosmetology: CASafeSalon
- The Libertarian Podcast: AB-5 and the End of Freelancers, January 2020 (industry agnostic)
The information included here should not be treated as legal advice. Seek council from an attorney for further guidance.