Several years ago, the payment structure for numerous salon and spa employees was turned on its head, as these salons and spas faced liability for paying employees a commission when they were not involved in sales. (See Sahara Pynes’ blog post on this topic, )
Salons and spas faced liability for the following compensation structures:
(1) Paying commissions to employees who were not selling goods or services; and
(2) Paying by piece rate (e.g. per treatment or service), which is a complicated payment structure to comply with due to requirements related to payment for nonproductive time, and specific requirements for paystubs.
These payment structures, often done incorrectly, also implicated additional wage and hour issues, such as failure to pay minimum wage and overtime payments, and failure to properly pay meal and rest breaks.
Labor Code Section 204.11 added a layer of complexity by changing the definition of the term “commission” in this context. The Code specifies that wages paid to employees who are licensed under the Barbering and Cosmetology Act, and provide services for which such a license is required, are commissions only if: (1) the employee’s base hourly rate is at least two times the state minimum wage in addition to commissions paid; and (2) the employee’s wages are paid at least twice during each calendar month on days designated in advance by the employer as regular paydays.
Pre-litigation demands and actual litigation slowed during the pandemic when spas...
A state announcement comes amid a congressional inquiry into Medicaid fraud but state officials said the cases are not related to federal pressure This premium article is for members. If you are on...