Barbershop Workers Leave After California Supreme Court Ruling

[Lord Coke]

I originally thought this ruling was a good thing when it came down because Uber drivers will get some help most likely. I didn't even think about Barbers losing their jobs over this ruling. What do you guys think overall is this ruling good or bad for CA



https://sacramento.cbslocal.com/2018/09/07/sacramento-barbershop-california-supreme-court/

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. Many 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 Giannotti.

RELATED: How A California Supreme Court Ruling Changed Independent Contractors

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 Giannotti.

Historically, the cosmetology industry, which includes barbers and hair stylists, have been classified as independent contractors, but that won’t be the case anymore.

Giannotti explains the new rule: “You cannot classify someone as an independent contractor if they offer the same service that is the primary business of the business.”

WHAT IS AN INDEPENDENT CONTRACTOR?

The April 2018 court ruling now says workers are assumed to be employees unless all three of these factors can be proven:

(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

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.

Rodriguez and her husband have owned their West Sacramento tattoo shop for eight years. Theirs is an industry full of independent contractors. She worries the new rules will put shops out of business.

“I think they will disappear. It’s not going to be sustainable for them anymore,” she said.

“This goes as far as your FedEx drivers are independent contractors, yoga instructors, pilates instructors. This is going to have a huge effect on the fifth-largest economy in the world,” said Giannotti.

He plans to hold a seminar on Sept. 16 that will be open to all independent contractors. Attorneys and employment experts will be on hand to answer any questions.

 

[lilelvis]

The "Gig" economy has been growing since the '08 meltdown. Personally, I think it is a good thing for independent types and there are still "jobs" for those that prefer a safer path. I'm not sure if the ruling will be good or bad for Cali, but always lean toward less government. Transactions of free will, let em bang....

 

[JamesRussler]

I haven't read the decision or analyzed the issue thoroughly, but I do see why it would be unfair to let businesses act like employers while avoiding responsibility by classifying their employees as "independent contractors." We see similar things happen with UFC, with the company using its massive power advantage to basically run fighters' lives.

But yeah, I'm sure this ruling will affect lots of businesses, and not always for the better. The haircut industry will survive.

 

[Gregolian]

So, I'm kind of lost.

Don't most barbers set their own hours and just rent a chair from the guy that owns the shop?

 

[PolishHeadlock]

I said when this happened that if an Uber Driver is not an independent contractor I'm not sure who is.

Bad ruling

 

[PolishHeadlock]

So, I'm kind of lost.

Don't most barbers set their own hours and just rent a chair from the guy that owns the shop?

Not much different than Uber

 

[method115]

So, I'm kind of lost.

Don't most barbers set their own hours and just rent a chair from the guy that owns the shop?

Yep my brother in law does it like this. He actually had to move because a drug dealer purchased the shop and started selling out of it.

 

[Lord Coke]

So, I'm kind of lost.

Don't most barbers set their own hours and just rent a chair from the guy that owns the shop?

Ya but the new test is you have to fulfill all three prong to be a IC. Barber fail b and c

(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

edit sorry I see what you are saying. I think if you just rent the chair and are not taking money from the barber you might be okay @JamesRussler what do you think. I am not sure now.

 

[Trotsky]

It's been obvious for quite some time that bending the law to the employee/independent contractor paradigm is increasingly problematic. A class between them ("dependent contractor" has gotten some traction IIRC), that separates gig economy workers, and in this case barbers, from traditional contractors, should be considered.

 

[Gregolian]

Ya but the new test is you have to fulfill all three prong to be a IC. Barber fail b and c

(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

Jeez

 

[all caps]

So will WWE no longer be having shows in front of dead crowds in California now?

 

[Cubo de Sangre]

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

 

[Amerikuracana]

There has to be a way a person can rent space in a barber shop. I mean, I guess these people are going to have to file LLCs, and become their own business, and then enter in a contractual relationship with the owner in some different fashion? You can't make things like that illegal across the board, even though I understand the abuse of the "independent contractor" status by many employers.

 

[HunterSdVa29]

aren't UFC fighters independent contractors?

 

[irish_thug]

I don't care about barbers. How does this affect strippers?

 

[ToxicShocker]

Ya but the new test is you have to fulfill all three prong to be a IC. Barber fail b and c

(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

edit sorry I see what you are saying. I think if you just rent the chair and are not taking money from the barber you might be okay @JamesRussler what do you think. I am not sure now.

I might be oversimplifying but B is not an issue. You don't go to a barbershop to get your hair cut, you go to a barber. The primary business is renting chairs, and the customer conducts biz with the lessee.

 

[Fedorable]

So will WWE no longer be having shows in front of dead crowds in California now?

I stopped watching wrestling back in 2002-ish but I still use wrestling as a metaphor or example for a lot of things. First thing I thought of was WWE as private contractors and the insurance issue. Some industries this will help and others it will hurt.

My uncle has a business and he has had up to 15 private contractors working for him. He gets them work and they pay him 15% of what they make. Without him they would spend half their time or more just finding work. He also pays a separate guy to design the work for them. There's a showroom, but all of his guys work from their own homes and trucks and have no home base.


He's not in California, but I wonder how this would effect his business. His top guys make up to 180,000.-- a year so they can afford their own insurance.

 

[Fawlty]

I wonder if this would apply to web development, or other work done away from a firm's physical location.

 

[JamesRussler]

I said when this happened that if an Uber Driver is not an independent contractor I'm not sure who is.

Bad ruling

Not much different than Uber

Not saying this ruling is correct, but what about Uber drivers makes them independent contractors? If all the drivers quit, Uber immediately has nothing to sell. When I think of IC's, I think of the IT guy, or the accountant. You call 'em when you need 'em, and if they can't do it, business continues until you find another one.

 

[JamesRussler]

Ya but the new test is you have to fulfill all three prong to be a IC. Barber fail b and c

(A) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

edit sorry I see what you are saying. I think if you just rent the chair and are not taking money from the barber you might be okay @JamesRussler what do you think. I am not sure now.

It seems that this test they announced sweeps pretty broadly. Obviously if it categorically lumps barbers and tattoo artists in with Uber drivers, there's something wrong with it. But here, it looks like the Court actually wanted "to create a simpler, clearer test for determining whether the worker is an employee or an independent contractor . . . and place[ ] the burden on the hirer" to prove an IC relationship. This is what happens.