Being an IC

[I wanna know?]

This question is directed towards those that are ICs or those who use ICs.

I work in a very small day spa. There is myself, the owner and a nail tech there. I pay 400.00 a month in room rent and am responsible for all costs and supplies having to do with massage. The nail tech also pays a specified booth rent. My question is this. When paying rent on a space and being an IC, what are the acceptable limitations on how much control you have versus the owner?

My thoughts on this, and I may be way off base here, is that if I am paying rent that my schedule, my services, my room decor etc should be under my control and say so. The owner tries to treat both my self and the nail tech as one would an hourly employee. I cannot do back to back massage because of health reasons. Even knowing this, she will put me 3 back to backs on my schedule without asking and then just tells me she doesn't want to turn business away. In her defense, these are usually part of spa packages with a group of women coming in together wanting facials, pedicures and massages. If I can't do the massage part of the package they would probably schedule elsewhere and both she and the nail tech would lose out on doing those services. Still, she knows and supposedly accepts that I have limits and will still schedule like that. I really get upset about this since I feel that she should always check with me on my schedule and what I am able and willing to do. I was also going to remove hot stone massages from my services which upset her since she has a package that includes that service. These are just a few little things.

She told our nail tech that she HAD to be up at the shop no matter what for 6 days of the week whether she has anyone scheduled or not to be sitting up at the shop and answering the phone and answering questions for people who walk in the door because she can't always be there. She even rearranged the nail techs work station without consulting the nail tech.

So, am I wrong in thinking that if one is paying rent that these things she is doing are no no's and that if she is expecting to have total control that she really should be paying an hourly wage to an employee and not having ICs work there?

I am kind of a green horn in this area which is why I wanted to ask you knowledgable people this question. It may be that I need to look into getting into a place of my own because this is really grating on my nerves and is making me unhappy where I am at. Any thoughts and advice is appreciated. Thanks in advance.

 

[Erica L]

You are correct on all counts. Many who work as ICs will accept completely the suggested schedule of the spa where they are working, but it is supposed to be a choice... otherwise you ARE an employee.

You pay $400/month in rent and are completely responsible for your own supplies, (etc) yet do not say if you are also being paid on commission. If so, and if the spa is getting a large cut, this is also a bit of a raw deal. And, since they are telling you that you MUST do a therapy that you no longer wish to do, this is also an employee situation.

If you are renting the room fulltime, it should say in your contract what you are allowed to do to the room regarding decor. Did you rent "as is" or did you rent the empty shell?

If you and the nail tech were to, say, report this situation to interested governmental agencies, the spa would have some problems.

That being said... though legally, an IC is supposed to have nearly as much control over their own practice as an owner, it is impractical to operate the business that way. In order to build a practice and earn money, you need to be available when they schedule you. Makes for a bit of a conundrum.

 

[Willy]

Here are two articles that explain the differences between IC's & Employees very well:

Massage & Bodywork Magazine
"Independent Contractor, Employee, Booth Renter: Which Piece Am I?"
http://www.massagetherapy.com/articles/index.php?article_id=454

From the IRS
"Employee or Independent Contractor?":
http://www.irs.gov/govt/fslg/article/0,,id=110344,00.html

 

[Patricia G]

Well...hmmm...contract? t087 Ruh roh! We haven't signed a contract of any sort nor has she suggested we do so. Probably not a good thing. As far as I know she has never had a contract with any of her previous ICs in any of her previous businesses either. Is a contract common practice?

As for comissions, here's the story. We were working on a 60/40 split when I started. A couple of months ago I had asked her to find someone to replace me. Business out of my home picked up as well as outcalls and it was starting to conflict. I had to do business out of my home because she wanted me to charge a certain rate and I couldn't give breaks to my people that were personal clients. She never would do a serious look for anyone. She didn't want me to leave since the customers always love my work and leave extremely satisfied with their time at the spa. A couple of weeks ago, I sat her down and told her that if I stayed I would have to go to room rent and that this is what I would expect and this is what she would have to work with and around and that if she couldn't accept or work with my limitations and expectations that she needed to find someone ASAP so that I would be freed up to persue my career elsewhere. Pricing was up to me whether I wanted to charge 60.00 or 30.00, no if's and's or but's. It would strictly be my choice. She was tickled that I was finally going to go to rent and that I was staying. So now there are no commission payments on anything unless I suddenly start selling hair care and facial care products to my clients which is a 15% commission. NOT!

As for the decor on the room. I came into the room as is. I painted and decorated the room when I was on commission. She wasn't thrilled with the color but once the room was fully decorated she retracted that and really liked the comfort and feel of the room. But I know that if I were to put anything in there that she didn't approve of or like that she would not be a happy camper. She brings alot of religion into her business. I remember once when I played a CD that has vocals on it that it made her nervous and she said she'd rather I didn't play it. Which is strange since she doesn't have a problem with christian music with hymns on it playing in the spa. I've learned to overlook and cope with some of her idiosyncrasies since it is her business. I do not expose any of my personal clients to these things other than when they first walk in the door. To me, clients shouldn't be forced to deal with certain things. This is a business, not a church and they shouldn't be smacked in the face with religion when they walk in the door. Most of my clients know this and know that when they hit my room, all of that is not in there and they do enjoy their time with me. They must or I wouldn't have a return clientele right?

I have given them a certain amount of control over my schedule for their ease when clients call. That way they don't have to tell the client they will have to call them back because they have to contact the massage therapist before they can schedule them. That looks kind of bad to me. So what I do do is call them on tuesday and I tell them of any days and any hours that I will not be available for scheduling. I call them if I personally schedule a client so they make sure and get that person on my book so we don't end up double booking people. I have also told them that as long as I have a 24 hour notice on all appointments and have no less than an hour between appointments that they can go ahead and schedule the client with me (still getting back to backs..grr). They DO need to contact me first if it is a special service or if it is a group coming at once to see if I will be able and willing to provide what is needed (obviously she ignores or forgets). To me, these are reasonable things.

A little more info for you guys to advise me with. Thanks for the speedy reply. I really appreciate it. The contract thing is something I need to look into. Right????

 

[Kara S]

You can be required to work certain hours

I don't see a whole lot that would get the spa owner into trouble, if she actually woke up and realized whta the situation really is. You should have a contract. But that does not make you an independent contractor, that makes you a lessee. The contract you need is a lease, even if you are within someone's premises.

We rent a space in a local commercial development for our spa. The landlord has very strict guidelines of our hours of operation. Don't adhere to them, and you are fined. No different than requiring the nail tech renting the station to be their 6 days a week.

As for working on a commission basis, that does not necessarily change the fact that you are a lessee. Our landlord requires us to pay a monthly minimum rent, then we pay X% on every dollar of sales over Y.

Your decor can be made subject to landlord approval. We had to have all of our "improvements" some of which are considered decor, to be approved by the landlord.

You should be in control of your scheduling restrictions - like no back to backs - but that is not the same as setting your own hours.

Again, your "lease" can stipulate what you will "sell" and what you cannot sell.

 

[Differenttrash]

Yup, after further clarification, I'd say you are in a lease situation. Paying straight rent and not working on commission makes you "running your own business, and cooperating with their schedule." You owe the same rent regardless of whether you make yourself available or not. You set your own fees, etc.

Even if the client pays the spa, you are paid your fee.

It now sounds to me like she WANTS to have total control, but you have set the guidelines. You risk a bit by relinquishing your schedule to her control, and she has taken advaneforum.xxxe, but you are still in control of your days/hours, decor, linens, oils etc.

Still, you should have a formal lease contract, and it would be good to sit down with her and come to an agreement of how you will operate your business in association with hers.