[Effective 1/8/2025]

4. a. No licensed shop owner shall enter into a chair or booth rental arrangement with a practicing licensee unless the practicing licensee holds a license to provide cosmetology and hairstyling services for which the shop is licensed and holds a chair or booth rental license. A practitioner who holds a chair or booth rental license and who provides services in a licensed shop under a chair or booth rental arrangement shall not offer services beyond the scope of services that the shop owner is licensed to provide.

b. An individual performing cosmetology, hairstyling, or other ancillary services in a licensed shop shall be deemed an employee of the shop, unless the following applies:

(1) a written agreement exists between the individual and the shop specifying the following:

(a) that the individual is an independent contractor;

(b) that the shop has no right to control the methodology used by the individual to produce a given result; and

(c) the amount of rent to be paid by the individual to the shop, whether calculated at a fixed percentage of the individual’s gross receipts or a flat fee.

(2) the individual possesses a booth rental permit issued by the board; and

(3) the individual has paid a booth rental permit fee to the board.

c. The licensed shop shall maintain complete records of all rental payments to the shop and all distributions to the individual.

d. No individual who has been issued a booth rental permit pursuant to section 5 of P.L.2023, c.231 (C. 45:5B-31.1) shall be recognized as an employee of a shop by the board.

L.2023, c.231, s.4.