After months of confusion without any help from California’s legislature, licensed manicurists finally may have some answers as to their status as independent contractors or employees. Previously, the California law that defines a person’s status as either an independent contractor or employee (AB5) contained a carve out for licensed manicurists, allowing them to act as independent contractors. However, AB5 contained a sunset clause potentially forcing all license manicurists to W2 employment status on January 1, 2025.
Licensed manicurists from around the state rallied and organized to plead with the legislature to either give them guidance or allow them to continue operating as independent contractors. Subsequently, Assemblyman Tri Ta from the 70th Assembly District, proposed Assembly Bill 504 (AB504) which removes the sunset clause for licensed manicurists. “If the exemption already works for other types of beauty licenses, it should work for manicurists” said Ta in an interview with the LA Times.
“Nail Salons have had a long history of high rates of misclassification and utilization of an immigrant workforce that often is unaware of their employment rights,” said Lorena Gonzalez, President of the California Federation of Labor Unions. This sunset clause was initially aimed at protecting a very vulnerable group of individuals.
Although AB504 has not passed, its proposal is a breath of fresh air for those licensed manicurists that truly and honestly operate as independent contractors, pursuant to AB5.
Of course, there are still many scenarios in which a licensed manicurist is truly a W2 employee, but AB504 allows for licensed manicurists to be treated as fairly as others in the professional services industry, such as estheticians, barbers, and cosmetologists.
If you believe you have been misclassified as an independent contractor, or you are a business seeking guidance on complying with California Labor Code, please contact Coast Law Group LLP.