Responsibilities of Owner with Employees

Business:

  • Provides a safe, clean, licensed salon workplace 

  • Responsible for marketing the salon & obtaining clients for employees

  • Creates promotions, deals, discounts, coupons & gift certificates for the salon

  • Overseas daily operations of salon unless there is a manager

  • Interviews, hire & trains employee stylists

  • Sets employee schedule

  • Keeps updated record of expenses & revenues

  • Maintains staff records

  • Receives payment from clients (except for tips unless a tip on card agreement is made with stylist) & keeps record of every transaction 

  • Responsible for bookkeeping or hiring out for service 

  • Responsible for cost of doing business (pay utilities, provided phone line, etc)

  • Provide all products required for employees to perform services on clients & cover the costs

  • Provide training & education to employees & pay them for their time if mandatory 

  • Has the right to fire an employee at any time as long as it is not due to race, sex, religion, marital status or disability

  • Covers the cost of client fixes

  • May impose a dress code or require uniforms

  • Sets service & retail prices

  • Owns the clients information

  • Maintains equipment


 

Legal:

  • Provides a safe work environment & covers employees with liability insurance

  • Obtains workman’s compensation insurance

  • Must provide work breaks according to state law

  • Create & enforce workplace rules, requirements, procedures & policies

  • May require a legal non-compete and/or non-solicit agreement

  • Follows Fair Labor Standards Act (FLSA) policies, complies with the Internal Revenue Service (IRS), adheres to Occupational Safety and Health Association (OSHA) regulations  & obeys regulations of Federal & State Department of Labor

  • Keeps track of hours the employee works per federal law

  • Responsible for licensing of salon & ultimatum responsible for passing inspection & paying any fines that are acquired


 

Taxes & Pay:

  • Takes out employee portion of state & federal taxes from paychecks & sends them in 

  • Pays their portion of employee taxes

  • Does not give employees a tax form 1099 - instead tax form W-2

  • Pays employees when they are required to be at the salon but are not with a client

  • Covers credit card fees & does not pass the fee on to the employee

  • Ensures employee receives all of their tips, does not figure them into commission & does not take out a credit card fee

  • Pays employee retail commission

  • Can not withhold pay as punishment

  • Must compensate employee if they are required to work during their entitled breaks

  • May be required to pay sick leave or short term disability in some states

  • Required to ensure employees make at least minimum wage & pay them for over time