If you are a salon owner in New Jersey, there is a new law that might change how you do business. Assembly Bill No. 1507 (P.L.2023, c.231) went into effect this past January, establishing new license requirements for chair and booth rentals for cosmetologists, hairstylists, barbers, manicurists, skin care specialists, and other licensed personal care practitioners.

Under the new law, licensed shop and salon owners may not have a chair or booth rental arrangement with a practicing personal care practitioner unless that individual holds a chair or booth rental license. Effectively distinguishing independent personal care practitioners from shop employees, the law strengthens their classification as independent contractors for compensation, tax, insurance, and liability claim purposes.

Individuals applying for a chair or booth rental license must be have a practitioner’s license in good standing, apply to the New Jersey State Board of Cosmetology and Hairstyling (the “Board”) and pay the associated fee. Among the information needed for the application will be a copy of a written contract or agreement between the personal care practitioner and shop or salon owner. In addition, the Board is authorized to inspect shops and salons where chair and booth rental arrangements exist, and licenses shall be renewable on a biennial basis. Furthermore, the new law requires the Board to maintain a record of all individuals holding chair or booth rental licenses.

Whether you are a salon owner who is leasing space or a hairstylist or cosmetologist that is working as an independent contractor, understanding this change, and remaining compliant can help you to avoid future penalties.

(This blog, prepared by Campanella Law Office, is for general informational purposes only and is not intended to convey specific legal advice, nor is it intended to create or constitute an attorney-client relationship.)