There are many salons that use "independent contractors" in their operation as opposed to treating their workers as employees. The IRS and the states are cracking down on the misclassification of workers.
This is an example of just that:
The Tax Court has held that a S corporation operating a masonry subcontracting business failed to properly treat its workers as employees. Although the workers were hired by the job and were free to work for others, a factor indicating independent contractor status, almost all of the other factors weighed in favor on employee status. For example, they were controlled by the subcontractor when they were on the job, and had no significant investment in facilities. Atlantic Coast Masonry, Inc., TC Memo 2012-233
