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California independent contractor rules

New here. I am asking for my wife, who is Chinese and new to the country. She recently had her massage school certification certified in California. She is working for a massage spa locally that is owned by a Chinese couple. Her best friend also works there.

I am asking what are the rules for independent contractors? I am sure the spa is not following them.

They work 12 hours, from 9 to 9. They pretty much remain on site all that time. They are paid a percentage of each massage. They keep their own tips.

I have not seen any 1099 or W9 or any paperwork I believe is required.

What, at the minimum, should I be asking my wife to get from them?

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Permalink Reply by B Reid on August 6, 2014 at 12:48pm

I'm not the expert but I work in a day spa. If your wife meets the criteria for an "independent contractor", see IRS list for determining if you are truly an independent contractor -- it is likely that she will receive a 1099 at the end of the year if she did NOT agree to take care of her own taxes on a quarterly basis. If she is an employee that works on commission (getting paid a percentage or flat rate, plus tips per service), then she is likely not receiving benefits or receiving hourly pay for "sitting". If this is the case, from 9 to 9, she will be getting paid for the services she provides and not paid for not providing a service. However, if she is an employee (not independent contractor), the spa cannot require her to be onsite when she is NOT working and she may have to clock in and out. That is her own time! If the spa requires her to be onsite during the time that she is not providing a service, then they should compensate her. Remember, I'm not the expert but I've worked in spas in California and have had to recruit estheticians and massage therapists. Hope this helps. When you receive EXPERT advice, please let me know if I've missed anything. California employment law is difficult to understand.

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Permalink Reply by Neal Lyons on February 1, 2015 at 2:54pm

first of all, 1099 contractors cannot be REQUIRED to be on the clock for that long as that constitutes full time employment. you should be asking what your wife feels is the value of her time. everyone has a different value. she can be using that time to do something else that pays more or less. it's for you to decide. don't forget factoring in self employment taxes. as a 1099 contractor, the tax aspects are very different than an employee. you also have to pay taxes 4 times a year on each quarter. consult your CPA for more info. we also have several articles on this topic on our website. all the best