Regarding the law AB 1513 that was put into place January 1st, 2016: do hair salon owners who rent out their salon to independent contractors now have to have Worker's Compensation for said contractors, even if they do not require them to stick to specific hours?
1 Answer from Attorneys
AB1513 pertains to EMPLOYEES not independent contractors. AB!513 applies to people who were paid for completed pieces, like sewn garments.
If a stylist signs an agreement s/he is just renting a space and complying with some building rules (like hours of servicing and using salon products at the sink, for safety of all), and agrees s/he is not an employee and will provide their own tools and manage their own hours, then they are an independent contractor.
But if the stylist is paid per head and someone else provides the tools and the chemicals and sets specific hours for the stylist, the stylist will more likely be found to be an 'employee' with that much control by the salon owner.
since employment will be decided on a case-by-case basis, either pay for comp insurance for the stylists or back off on the things you control so all you are providing is a space.