Spa Owners in the Bay Area Face Misclassification Penalties:

Seven businesses have been fined by state labor officials who conducted a sweep which included nail salons, day spas and beauty salons all over the bay area. Read more in the full article from the Napa Valley Register.

Fines were issued for failing to carry worker's compensation insurance, failing to provide itemized deductions for items such as Social Security on paychecks, or both, according to the State Division of Labor Standards Enforcement.

Should the state issue warnings to come into compliance before delivering this type of smackdown which could potentially crush these small businesses? Or is it a business owner's responsibility to uncover best practices when employing independent contractors? Until more facts have emerged, we cannot take a stance on this sweep. However, it is very interesting that only seven spas were fined. What distinguished these spas from the rest?