An Inner Sunset hair salon owner told customers she's closing up shop today because of a change in state law that requires workers to be compensated for the time they're not servicing clients. But according to a former employee, the salon is trying to dodge responsibility for taking a little off the top of employees' compensation.
In an email sent to customers on October 14th, Teri Anne Kemnitz, owner of full-service The Cutlery, wrote that she had "been put into a position where I am no longer able to stay in business," citing "the current changes the state of California has forced upon the salon industry."
Dear beloved The Cutlery clients, friends,and family.....
— The Cutlery (@TheCutlery) October 24, 2016
It is with a heavy heart, but with much gratitude and... https://t.co/viGlHumQne
We made several attempts to reach Kemnitz, but she did not respond to Hoodline's requests for an interview. A former employee said Kemnitz' email refers to Assembly Bill 1513, a bill mandating that "piece-rate" workers who provide services like massage therapy, hair styling or auto sales must be paid for "rest/recovery" and "non-productive" time, such as folding towels or cleaning equipment.
Employers must now track these periods separately, compensation for this time can't be lower than state minimum wage, and it must be different than the rate of pay received for piece-rate work.
The law also permits piece-rate workers to request back pay, but employers who paid back 4 percent of their earnings between July 2012 and July 2016 were exempted.
The former employee who talked to Hoodline said The Cutlery is trying to avoid past liability by going out of business. In her goodbye email, Kemnitz wrote that she looked forward to serving customers "in my new salon."
The former employee said the salon's closure is largely due to "lawsuits" by other ex-workers, several of whom allegedly told her that The Cutlery isn't following the new law regarding pay for piece-rate employees and has also illegally deducted the cost of supplies from their compensation.
In salons where stylists work on commission, owners may charge workers for the cost of materials like hair color, but they can't charge a service fee or force employees to cover credit card charges. In California, employers must bear the entire cost of running a business.
"She'd charge me five to ten to fifteen bucks per tube per service," the former employee we spoke with added, noting that in one week, she paid $45 in markup "for just color," plus $40 in credit card charges. After several months, she quit several days ago, she said.
"People can't get away with that stuff and say, 'Oh, poor me,' because that's not the situation," she said. "She's trying to use it for her benefit, and that's not right."
We'll update this post if and when we hear back from the salon's owner.
