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An Employee by Any Other Name: Nail Technicians Misclassified a Independent Contractors
03/05/2018
By: Travis Hanson

Recently, the Kansas Court of Appeals affirmed the district court and the Kansas Department of Labor’s (KDOL) finding that nail technicians at a salon were employees rather than independent contractors for unemployment-tax contribution purposes. This case has important tips for handling classification issues in any industry.

Review of the Record
In 2014, Leander and Hongmin (Amy) Fisher began doing business as Amy’s Spa Services, LLC (the Spa). The Spa classified all of its nail technicians as independent contractors. The KDOL audited the business to determine whether the Spa properly classified the technicians for unemployment-tax withholdings. For unemployment-tax contributions in Kansas, an individual is an employee if the employer has the right to control the manner and means of the work performed; whether the employer exercises that right is inconsequential.
The auditor reviewed the Spa’s independent contractor agreement, interviewed three nail technicians and Leander Fisher, and reviewed some of the Spa’s financial documents. The auditor’s review of the independent contractor agreement stated that the parties intended to form an independent contractor relationship. Under the agreement, the Spa purported to require the technicians to clean their workstations, supply the tools necessary to complete their jobs, and gave the technicians discretion to set their own prices, as long as they did not undermine the Spa’s prices. The agreement also provided that the Spa would receive all payments that were later distributed to the technicians, and that      Continue Reading...
 
Treat for Employers: Trump Administration Ends Obama-Era Equal Pay Rule
10/20/2017
By: Travis Hanson
President Trump has stopped an Obama-era rule requiring large companies to report how much they pay workers by race and gender. The goal of the rule was to help in closing the wage gap between men and women, and between different racial groups, by providing additional transparency to the issue. The Trump administration claims it halted the rule on the belief that it would not work as planned.
 
The rule required private employers with over 100 employees, and federal contractors with 50 or more employees, to disclose wage and pay data to the Equal Employment Opportunity Commission. Under the rule, the EEOC would have used the data in investigating complaints regarding disparities in pay. The data would not have been made public; however, the EEOC would have released the aggregate data about pay in various industries, broken down by race and gender.
 
Some critics of the rule argued that it was not precise enough to be useful. Supporters of the rule disagreed, arguing that employers that monitor themselves have smaller pay gaps.
 

For Kansas employers with over 100 employees, this move means that you will not have to provide this data to the EEOC starting in 2018, as the rule had not gone into effect before its suspension.

 


Authors
Don Berner Image
Don Berner, the Labor Law, OSHA, & Immigration Law Guy
Boyd Byers Image
Boyd Byers, the General Employment Law Guy
Jason Lacey Image
Jason Lacey, the Employee Benefits Guy
Additional Sources
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