Wednesday, January 12, 2011


I have a Salon and have spoken with you before. I have a boothrenter that just moved in (massage therapist) in October. We signed a contract where I have all the front desk services itemized, phone, and receptionist service, are extra cost. We did not determine that instantly because I wanted to use that income to give my wonderful salon manager a raise. She said she could only pay me $100. more per month so I figured out a .50 raise is the most I could do. I pay my salon manager now $14.00 per hr. My boothrenter did not pay that added fee on my invoice for November or December. When I inquired why, she told me she was paying my manager $25 per week on the side and said she told me which would not be agreeable to me. When I asked my manager about it, she got very upset and said she deserved both money's from the boothrenter and me. I would agree she is worth more but I am not being compensated anything for phone and time I take when my manager is not there. Or even when I have another person answering the phone for me. These are both key people to me. I am so sad and hate to lose either. What would you do? I have done all the talking and explaining. My Manager's husband is out of work and I understand she needs the $. My boothrenter does not think she has done anything wrong. She says that is the way she's always done things. Isn't that wrong? Does anyone hold them accountable or am I being too strict. Should I just let it go and be thankful I have them?
I appreciate your response. Thank you so much.

What a mess. The booth renter has probably committed a contract violation by not paying the agreed upon rent. The receptionist has not been honest with you by not telling you that she was being paid by the renter. The renter should be treating the receptionist as an employee and withholding and giving the receptionist a W-2 or at least treat her as an independent contractor and give her a 1099. Unfortunately there is nothing you can do about that. There arrangement is between them.

I guess as you make the decision on what to do, you have to ask yourself what the cost is. I always advise client to “quantify” the cost so that they know the financial impact of a business decision. In your case, if you gave the receptionist a 50 cent raise and she works full time the cost to you is $1,040 in addition pay (full time 2080 hours times $.50) plus payroll tax burden of around $100 for a total of $1,140. The question that you have to ask yourself is it worth $1,140 to stick to your guns and risk the possibility of losing one of these people?

Good luck!