Most states allow this, do you live in NJ? It got banned there outright. I think the rationale was that it would have been abused by shop owners to force employees to pay them high rental fees and effectively pay less than minimum wage to barbers.
In other states, barbers and hairdressers often pay shop owners to run an independent business inside their shop. So you directly pay a hairdresser, who brings their own equipment and sets their own rates but works inside their “office”, a barber shop.
Most barbers operate as independent contractors. They show up to the barbershop, cut hair all day, and keep all of the money they get from haircuts and tips. At the end of the day they pay “rent” to the barbershop for using the booth.
The alternative is that you are employed to work for the barbershop and get paid an hourly wage.
I have never heard of booth rentals being outlawed.
Employers forcing employees to effectively rent from their job as an end-run around of minimum wage laws. You provide your own equipment and tools, while I provide the location for you to use. While you may be an “independent contactor” on the books, the requirements around renting the space are so onerous, that you have no real say in the actual operation of your “booth”.
To rent the booth, you must occupy it from 8am-5pm, and are required to accept whatever customers you are assigned, your booth must follow the same format as the rest of the location, and we are allowed to terminate your booth rental at any time without cause or notice.
Imagine pizza hut renting out the kitchen for “aspiring chefs” so long as you only cook pizza hut recipes during store hours using pizza hut ingredients.
I was told by a friend several years ago that she “rents” her chair and station from the owner of the salon. She has to use all of her own equipment and supplies. I seem to recall that she had to pay a small % of the basic charge she got from the client. That’s one reason tips to the hairdresser/barber are so appreciated. They keep 100% of their tips.
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