Salon Business: Operations, Employment, and Risk Management
What this domain tests
Salon Business questions test how a Idaho salon legally and financially operates: employment classification, booth rental, records, insurance, pricing, and safety compliance. The exam favors practical scenarios over definitions.
Employment and booth rental
A booth renter is generally an independent contractor who pays rent, sets their own hours and prices, supplies their own tools and products, and controls their own clientele. An employee is scheduled and directed by the salon, uses salon supplies, and follows salon pricing. Misclassification can create tax, workers’ compensation, and liability problems. Put the arrangement in writing, keep rent records, and confirm who carries liability insurance.
Operations and records
Track service and retail sales separately, price for product cost plus time and overhead, and keep inventory controls. Maintain client records with service dates, formulas, patch-test results, and notes. Keep safety data sheets (SDS) for chemicals accessible. Confirm salon and individual licenses are current, and post required notices.
Worked example
A stylist rents a chair but the owner sets all prices, schedules, and client assignments, and requires the stylist to use salon color. Reason: those controls look like employment, not independent contracting. The written agreement should match how the salon actually operates.
Traps
Calling someone a contractor while controlling their work; no written rent agreement; missing SDS sheets; mixing personal and business funds; assuming a salon license covers employees.