Form De 231c - Information Sheet - California Employment Development Department (Page 2 of 2) in pdf

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The cosmetologists performed their services within

The cosmetologists maintained a current business

the shop’s fixed hours which were established by the

license. The cosmetologists purchased their own

principal.

business cards. The cosmetologists paid for their

own products. The cosmetologists advertised their

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The principal provided the place of work, equipment,

services in the phone book.

supplies, and held the business license. The

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principal advertised and provided business cards.

The cosmetologists had their own separate clientele.

The cosmetologists also provided the same services

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The cosmetologists did not advertise and did not

at locations other than the principal’s business

hold themselves out to the public as being an

establishment.

independently established business.

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The cosmetologists had the right to refuse an

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The cosmetologists did not have clientele

appointment or refer an appointment to another

independent of the principal’s customers.

cosmetologist.

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The principal set the prices, controlled the payments

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The cosmetologists set their own prices. The

received from the customers, and paid the

customers wrote their checks to the cosmetologists.

cosmetologists. The principal absorbed any loss

The cosmetologists had the responsibility to collect

when the customer did not pay or issued a

on a bad check or bear the risk of loss.

nonnegotiable check.

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The principal’s and the cosmetologists’ relationship

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The cosmetologists provided only small hand tools

was that of a landlord/tenant. The cosmetologists

such as scissors, combs, and brushes.

were merely renting space from the principal.

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The cosmetologists could not sublet or relinquish

(Reference CUIAB Tax Decisions: T-96-50, T-95-125,

their chairs.

T-94-603, T-91-83, T-89-307 & -308, T-88-317, and

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T-88-215 & -216.)

The principal and the cosmetologists could terminate

their relationship without legal obligation to each

The cosmetologist’s possession of a state-issued

other.

cosmetologist license does not imply an independent

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contractor’s status since all cosmetologists are required

The cosmetologists performed their services on a

to possess one to practice that occupation.

continuous basis.

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Specific questions or assistance regarding the

The cosmetologists’ services were in the direct

employment status of cosmetologists may be directed to

furtherance and an integral part of the principal’s

the nearest Employment Tax Customer Service Office.

business.

Offices are listed in the State Government Section of the

(Reference CUIAB Tax Decisions: T-97-71, T-96-27 &

telephone book under Employment Development

T-96-193, T-91-83, T-91-23, T-88-96, T-86-165 & -166,

Department, Employment Tax Information or Payroll Tax

T-86-100, T-85-148, T-84-75, T-82-14, and T-79-119.)

Information and Assistance.

The CUIAB has generally held that cosmetologists were

A formal ruling may also be requested by submitting a

independent contractors under conditions that include,

DE 1870, Determination of Employment Work Status, to:

but are not limited to, the following:

Audit Section, MIC 94

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The cosmetologists maintained a personal

P.O. Box 826880

appointment book, scheduled their clients, and

Sacramento, CA 94280-0001

controlled their own schedules. The cosmetologists

had keys to the premises and were free to work

other hours.

Equal Opportunity Employer/Program. Auxiliary services and assistance available to persons with disabilities.

DE 231C Rev. 3 (11-98) (INTERNET)

Page 2 of 2

Form De 231c - Information Sheet - California Employment Development Department Page 2

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