November - Stylist and Salon Newspapers

The Changing of the BoardOHLA Thanks Outgoing,Welcomes New Board MembersThe Oregon Health Licensing Agency(OHLA) and Board of Cosmetology thankoutgoing members Deely Klarr and JudithPeterson and welcome new members HerbHirst and Sharon Wiser.Outgoing Board MembersJudith Peterson — Terms of service:7/1/01 - 6/30/04, 7/1/04 - 6/30/07Judith Petersoncontinued to serve onuntil a replacement wasappointed more than ayear after her second termexpired, highlighting herdedication and reliabilityas a Board member.Ms. Peterson most recently servedon the Board’s Scholarship / EducationSub-Committee.Her experience as district manager forPerfect Look salons for more than 10 yearsand as a practicing hair designer since 1967provided valuable insight into and knowledgeof the industry, assisting the Board inaddressing a wide range of issues.Deely Klarr — Terms of Service:2/20/04 – 6/30/05, 7/1/05 – 6/30/08Deely Klarr served asthe Board’s 2008 Vice-Chair and brought morethan 30 years of experienceas a practitioner andsalon owner to her Boardservice.Ms. Klarr recentlyserved on the Enforcement,Product Safety / Public Protection and ItemWriting Sub-Committees.Ms. Klarr contributed an informedopinion on industry issues and effusiveenergy to Board discussions. Her sense ofhumor brought levity to sometimes seriousissues without lessening the importance ofthe Board’s decision-making process.She is planning to expand her Salemareasalon business, necessitating herresignation from the Board to concentrateon the planned expansion.About the Board...New Board MembersHerb HirstFirst term of service:5/05/06 – 5/04/09Public member HerbHirst is retired and previouslyserved as the public member of the EnvironmentalHealth Registration Board.Mr. Hirst has extensive public serviceexperience, as Business Administrator forthe Oregon State Police from 1995-98 andAssistant Administrator for AdministrativeServices, Health Division, Department ofHuman Resources, 1990-95, among otherpositions with the State of Oregon since 1970.He is currently serving his fifth term onthe North Plains City Council, as President,and is on the Washington County FairBoard, Metropolitan Area CommunicationsCommission, and the Washington CountyPlanning Commission.Mr. Hirst retired as a Colonel fromthe U.S. Army after 35 years of active andreserve service, which included managementcoursework at Harvard, Michigan andTexas universities, National War College, Ft.Leavenworth and the Department of State.“Consumer protection coupled with goodbusiness practices and accurate licensing areprominent in my mind,” says Mr. Hirst.Sharon WiserFirst term of service: 10/15/08 - 6/30/10Sharon Wiser has beenin the beauty industry formore than 30 years and iscurrently an instructor atPhagan’s School of HairDesign in Portland.Ms. Wiser has extensiveexperience in beautyindustry sales and management as DistrictSales Manager at Perfect Look Salons,Director of Operations at Premier Salons inCalifornia, General Manager of Great Clipsin Oregon, Area Director of Hair Plus inNorth Carolina and District Manager of theHair Cuttery in Georgia.“I have a real passion for what happensto cosmetologists, students and for theprotection and safety of the public,” saysMs. Wiser. “I look forward to giving back tothe industry that has given me so much, andmaking a difference.”The Board of Cosmetology consists of seven members appointed by the governor:six certified practitioners (who are not associated with the manufacture, sales ordistribution of cosmetic appliances or supplies) and one public member. In addition,the Oregon Health Licensing Agency (OHLA) director or representative may serve asa non-voting member. Terms of office are three years, with an appointee eligible toserve a maximum of two consecutive terms.Considering CompensationEsthetic EndeavorsJudith CulpThere seems to be a lot of confusion andmisunderstandings in our industry aboutindependent contractors and employees andcompensation. This is a challenging situationand needs to be handled so it is a win-winsituation for all.Many salon owners feel they can’t affordto pay the overhead of having employees, sotheir alternative is to hire people as independentcontractors. They think this way theydon’t have to pay taxes. Then they direct theindependent contractor on what days andhours they are to work, what products theywill use and what prices they will charge.Unfortunately, these directives mean theperson is not an independentcontractor; they are anemployee and subject to taxesbeing withheld and paid.According to IRSguidelines, behavioral controlsare a component of determinationfor employment status. Thisincludes directing what to do,when to do it, why it needsto be done and how it will beaccomplished.Financial controls are a seconddetermining factor. Financialcontrols include directingor controlling the businessaspects of work to be done.This would include establishingprices to be charged, anddetermining how much is tobe spent for supplies, marketing,equipment and retail.The third key component is the relationship ofthe parties involved. This includes any benefitsand written contracts. But just a writtencontract alone does not make an independentcontractor. All aspects are considered.If salon owners truly want to have independentcontractors then the contractor musthave complete control over establishing theirown hours and prices, and have the ability torealize a profit or loss.Commission or Hourly? Someproprietors pay on a straight commissionbasis. The laws regarding this vary some fromstate to state. In most states, the employeemust receive equal to at least minimumwage hours worked in a given payroll period.Some employers pay minimum wage or theypay commission which ever is greater. Thisoffers motivation for the technician to helpbuild their practice and thereby enhance theirincome.If salon owners trulyTips or Gifts? Every IRS document youread on the subject will advise you that alltips must be reported as income. Studentsare responsible for reporting on their taxreturn any tips they earn while performingservices at a cosmetology school, even if theyare not required to report them to the school.Licensed professionals who are employeesmust report their tips to their employer.Independent contractors or proprietors arealso responsible for reporting their tips ontheir tax returns.But aren’t tips a gift from a client? Notaccording to the IRS. They are a bonus fora service rendered and therefore taxable.On the other hand, if the client brings you abirthday or holiday gift, that is a gift and doesnot have to be reported on tax returns.So How Much? Then how do weestablish guidelines for what is a goodcompensation plan foremployees? It mustmeet several parameters.It must be lowenough that it does notput the employer outof business, otherwiseeveryone loses. It mustbe high enough tomotivate the employeeto perform, and then toincrease performanceso they can see personalgain.Many incentivebasedprograms seem todo well for the natureand mindset of thepersonalities that preferour type of work. Offerthe employee an opportunityto earn moreor get more benefits with more production.Benefits might include not only higher wagesbut could also include an education fund,paid days off, insurance contributions andmany other hard-to-find desirable things.Compensation is a package of financialand nonfinancial ways to reward an employee’sperformance and loyalty. It needs to meetstate labor guidelines, be fair and offer a wayfor the employee to earn raises, recognitionand personal satisfaction. It needs to rewardthe employer with a prospering business andstrong staff support. All these things workingtogether create our win-win employer andemployee situation.want to have independentcontractors thenthe contractor musthave complete controlover establishing theirown hours and prices,and have the ability torealize a profit or loss.Judith Culp, a CIDESCO Diplomat has been in the esthetics industry since 1980.A CPCP permanent makeup technician for over 18 years she served a 4-yearterm as a Director for the Society of Permanent Cosmetic Professionals, twoyears as their president. She is president of Culp Enterprises Inc. and CEO of NWInstitute of Esthetics. Judy Culp is available for consulting. For more informationvisit www.estheticsnw.com.NORTHWEST STYLIST & SALON | NOVEMBER 2008 | 13