Spa working at as IC now wants us to be employees

[alvinyprime]

Thanks all set

 

[mIsTy bEeBeE]

Spa working at as IC now wants us to be employees

I've been working at a spa as a IC. Now they want to switch all MT's over to employee status. I'm not thrilled at this as I have always worked as an IC. WHat are things I should be looking for contract wise and such so I don't get screwed.

What makes you think you are going to get screwed? Have they been screwing you as an IC? if so, why do you stay? If not, why do you think this will change?

Many people prefer being an employee because it provides legal protection through the state labor agency regarding pay, hours etc. Being an employee means the spa kicks in 1/2 your FICA, all of your FUTA and state equivalent and has to cover you with workers comp.

To be an "employee" aren't they suppose to fully supply everything you use?

Not necessarily. When I was a staff photographer at a newspaper, I had to supply my cameras and lenses. The paper supplied the consumables and the facility.

How does pay usually work as an employee?

There is no usual. You can get paid a %. You can get paid per service. Or be paid hourly + %. Or hourly + fee per service. Or a combination. There might be a % on retail sales, but there also might be a quota.

There might be a product charge per service. The spa might assess a service charge/tip, to which they have the legal right to keep 100%. Or are tips up to the client, which you get it all, but the spa may impose a charge for non-cash tips. Do employees contribute to the non-technician employees? You get the tips, but the size of the tip is often based on the whole experience - the person who brews the tea, makes sure the robes and slippers are clean, etc.

First, you have to figure out what you think you time is worth, based on the job requirements and other aspects of the comp plan. Do you have to be on site all working hours? Is there any pay, and if so is it less, for being on call, but not on site? Will you have to do non-massage work if you are on site, paid or not (you don't have to get paid to be on site).

Once you know the job requirements, figure out what that is worth to you. $ per hour, $ per treatment, estimated earnings per week, whatever. Just don't think of it as a %, which is a meaningless figure with no value. The only thing more meaningless than a % is worrying about what is "fair". Fair is what the two parties agree to. Nothing else figures into the equation.

With any negotiation - at whatever level - you have to figure out your BATNA -- the Best Alternative to A Negotiated AGreement. If you can't come to terms, what do you face? Building a clientele from scratch? Picking up IC work in a struggling market? You may not like what they offer, but you need to forget "like" and decide if it is better than the alternative. too often people get emotional about it and screw things up because of irrelevant factors. Sure, it is no fun to have a base pay cut, but if the altnerative is unemployment, the idea of lower base pay with higher bonus potential starts to look pretty good.

But also keep in mind, few businesses negotiate terms with non-management employees. Opens them up to discrimination lawsuits. So you have to decide what you want. Doesn't matter what other people make at other spas. Doesn't matter what you used to earn (lots of people used to have lots of things they don't have these days... the past is irrelevant).

There is probably a good chance the spa -- like many businesses these days -- is struggling under its current staffing / comp structure and they are looking to re-organize to get through the downturn. Going to employee workforce might be their way to minimize their fixed costs to weather storm, but it might work out to better pay when they are busier.