Groomers Guide

No Groomer is Above the Law typography
(And No Groomer is Below It) typography
large illustration of a hand holding a scale, one plate holds a pile of books and the other holds various grooming tools
by Jennifer Bishop Jenkins
The pet industry has been emerging in recent decades to become a major economic presence. Groomers have grown from being somewhat of an underground economy to being a mainstream, high-profile, valued business and service. We welcome this emergence into the cultural and economic mainstream. However, this increasing attention to our industry is bringing to light the need to purge some legacy practices still present in our industry that have long been illegal and problematic.

This higher public profile also likely explains why, when I opened my grooming salon a decade ago and called the Illinois state agencies to set up my sales tax and other legalities, the official on the phone said to me, quite earnestly, “You had better report everything correctly—we are on to you all in the grooming industry!” While I was surprised he said that, I assured him that we would follow the law carefully.

Resources for Legal Compliance

First, I am not a lawyer and nothing in this article should be construed as legal advice. Everyone reading this should have a relationship with their own lawyer—someone you can consult to make sure that you are compliant with the law in every aspect of your life. It is also important to be aware that laws vary widely from city to county to state, and across the nation.
From working out of our homes or making house-calls to owning a solo salon with multiple employees or working for a big-box store, we have a diverse industry with diverse regulations impacting us.
There is much you can learn by researching for yourself. There are also not-for-profit agencies that supply free or low-cost general guidance, as well as legal aid societies and free legal clinics, often associated with universities and colleges. In unemployment disputes, the state agency will often provide legal representation to both sides in a dispute over unemployment issues.

I also highly recommend everyone take a business course at a local community college, in person or online. These classes are affordable, not academically difficult, and can even be taken for no college credit. A business class will stand you in good stead all your life in helping you keep your own financial records, do your taxes, work safely and profitably, or grow your own economic security.

Outdated Practices
Many illegal, old-school habits passed on from those who came before us persist because groomers don’t even know that the practice is problematic. Many of us have been taught some wrong things, and in some cases the laws have changed. Ignorance of the law is no excuse.

Many groomers still work for cash, which is illegal when not reported as income. Many employers pressure groomers to skirt the law with them by mutually agreeing to not treat the groomer as a legal employee, putting both at risk. Other trade industries such as beauticians, plumbers, and electricians have become more regulated and even licensed. This regulation and licensure is surely coming our way and has already been proposed in several states.

Work-Related Requirements
Since groomers can work in so many different models, legal requirements for our profession can vary widely. From working out of our homes or making house-calls to owning a solo salon with multiple employees or working for a big-box store, we have a diverse industry with diverse regulations impacting us.
For Employers
If you own a grooming business with employees, your burden in complying with the law is high. But think positively! The government is not your adversary and being an employer with employees is not an adversarial situation. It is a privilege and responsibility. We are leaders in our communities who build relationships with local officials and other businesses. We are all working together for the same goals. Industrial regulations are designed to keep employers and employees safe. Taxation is not evil; it is income critical for federal, state and local operations to work.

Groomers are subject to all the same federal and state labor laws as everyone else. If you are a business owner who has other staff working for you and do not have the current year’s federal and state labor law poster hanging on your wall, you are in violation of the law. These can be purchased for a nominal fee each year.

Employers must abide by laws regarding medical leave, paid time off (PTO), hours worked, minimum wage, overtime rules and mandatory reporting. Many states have requirements unique to that state, such as a requirement for annual sexual harassment training for all staff in a workplace. Your local or state Chambers of Commerce may be able to guide you, or you can call your county government officials. Your county animal control may have regulations applicable to your business as well.

Without a doubt, in a service industry like ours, labor is always the business owner’s highest percentage of expenses…and owners are always trying to find ways to cut costs. But workers’ rights must be respected, because these workers are the ones enabling the owners to make money. A good relationship between owners, managers and workforce will mean more productivity, more loyalty and higher-quality work. A stressed workforce invariably produces lower-quality work and reduces productivity.

All grooming businesses with employees, no matter where they are located, must have Worker’s Compensation insurance. Check requirements in your area. Also, Sole Proprietorships must pay half of their Social Security and Medicare for themselves throughout the year. This requirement cannot be ignored, and it will benefit you years from now. Business licenses are also usually required, but find out if it is by county, city or state in your area.

For Sole Proprietors
If the business model is a sole proprietorship, this requires reporting income honestly and paying taxes on that income after deducting legitimate business expenses. Document everything. Keeping thorough records is critical. This is one of the reasons why a good point of sale system or business software is so important and does a lot of the work for you at tax time.
It goes without saying that hiding income and tips in cash transactions can get you in big trouble. It only takes one person complaining and the result could be anywhere from large fines to being prosecuted.

Groomers must comply with all zoning issues and local ordinances, even if they are working from their home. Find out what zoning and local ordinances apply to you. We must also set up and pay sales tax if we have any retail items such as grooming tools, treats or pet supplies.

There are often environmental requirements in most localities. These could affect trash removal and how you manage cleanliness, waste, sanitation, etc. You also must have appropriate types and numbers of fire extinguishers on premises and know how to use them. Fire extinguishers must be inspected and tagged regularly to ensure they are always working. Regular fire marshal inspections are generally required as well, no matter where your business is set up to operate from.

The American Kennel Club, International Professional Groomers and other pet industry organizations offer voluntary, but valuable, safety certifications for individual groomers and salons. These grooming-industry-based credentials are not legally required, but they do enhance your expertise and are a great thing to brag to your clients about, setting you apart from competitors.

Taxes
Whether you own your grooming business, are self-employed or work for someone else, I highly recommend everyone hire a CPA (certified public accountant) to assist with doing your annual taxes. They are very affordable for the security and protection they offer. Be advised that CPAs and other professional advisors are bound by codes of ethics that guarantee that you, as a business owner, are operating your business within the law. Make sure you pay all employees appropriately, according to all laws and regulations of the federal Internal Revenue Service (IRS) and your state taxing authority.

Do not try to avoid paying taxes—it is truly a no-win situation for you. As the gentleman on the phone with the Illinois Commerce Commission told me, they are “on to us,” and they know that our industry has a legacy culture of working for cash under the table. If you are found guilty of not paying taxes, or violating labor laws or other legal requirements, you can be fined and put out of business, as well as held personally liable, which means your home and possessions could be at risk.

Independent Contractors
It is in federal and state law that independent contractors (or ICs) cannot do the same work that is the business’s activity. This means that an independent contractor can be hired if they work in a separate business, such as a groomer hiring a plumber or a painter, but a groomer cannot hire another groomer as an IC. A veterinary office, for example, may be able to hire a groomer as a solo independent contractor as a legal 1099, depending on the model and the state.

Many grooming businesses, however, still are using this model illegally. When businesses illegally pay groomers as independent contractors, it places the responsibility on the groomers to report the income on their personal taxes. Groomers often do not even know their obligations, so they end up as a tax cheat either knowingly or out of ignorance of the law, which we all know is no excuse. Workers new to the country are especially vulnerable.

1099s
The obligation of a truly legal 1099 grooming contractor is to report all their income and pay their own taxes. Businesses will often try to skirt the IC laws to avoid financial obligations associated with having employees. This is, however, illegal for both business and groomers, and both can be fined and face prosecution resulting in a serious life crisis with potentially disastrous consequences. The federal government has also cracked down and requires employers to report 1099 earnings for actual contract labor.
Commission & Tips
Groomers should be very careful when working on commission, a long-held legacy practice in our industry. Even on commission, all groomers must be W-2 employees and still be guaranteed at least minimum wage. People who earn tips keep their tips—they do not belong to the business. There may be some circumstances when there is an agreement from all the staff together, for example, to tip bathers or other support staff, but owners cannot touch tips. Tips must be reported as income under current laws and run through the payroll system. Even if paid as cash, tips are still income.
Booth Rentals
The “Booth Rental” model can also be a trap. No one can legally rent a booth in a grooming shop where there are other booth-renters doing the same business. You may be able to rent a space from a non-grooming business, like a pet store, a boarding kennel or a veterinarian where you are the only groomer, but everyone should clear this practice with a tax attorney.
Some grooming businesses are trying to dodge paying taxes by forming private membership associations. Complying properly with this model is both sketchy and complex and would require hiring an attorney. The IRS is increasingly placing scrutiny on these models as well.
Workplace Codes & Other Laws
No matter where we groom, we must keep the physical space in which we groom up to code. Codes can be local, state or federal, so be sure to know the laws at all three levels. It goes without saying that we are all responsible for following OSHA ordinances and maintaining a safe workplace. We are also all obligated to report any issues per reporting requirements, which can vary.

If we do any remodeling, building or improvements, we must get a building permit as required by law. Building codes can be local, county, state or national. No matter where you groom, you are responsible for following codes that are applicable to where you are doing your grooming.

Carrying business and/or liability insurance may or may not be required, but it certainly is a good idea if want to keep your business. There are myriad of laws that could affect what we do every day, especially since we work with animals. Some states, for example, have bite laws that require them all to be reported, no matter the severity of the bite. A pet getting sick or injured, or worse; or a person getting injured on your premises, could happen at any time.

To learn more about the many miscellaneous laws that can affect you, consult with local Chambers of Commerce or an attorney, or search on your state’s legislative websites using keywords or search terms for laws that might affect you. Better yet, join your state grooming association or form one if your state does not yet have one. Contact the World Alliance of Grooming Associations (WAGA)1 and they will help your state to create a grooming association if it does not have one.

The problem we face is the urge people often have to increase their earnings by cheating the government and the public coffers by doing something illegal or taking advantage of their employees. Instead, be knowledgeable and be proud that you are the kind of person who knows and follows the law with integrity. Laws are a public good, and everyone following them makes life safer and better for all of us.

References:
  1. World Alliance of Grooming Associations Inc. https://waga.wildapricot.org/