Salon Legalities: Understanding Applicable Laws For Your Business

Running a salon is the dream of many beauticians, hair stylists, and other professionals in the beauty industry. However, before opening a salon, it is important to be aware of the applicable laws and regulations. The legal requirements for salons can vary depending on the location and type of salon. While some standards are consistent across the board, it is crucial to research the specific laws for your state and city. Here is an overview of some key legal considerations to keep in mind when starting and operating a salon business.

Licensing and Inspections

One of the essential requirements for opening a salon is obtaining the necessary licenses and permits. This includes a business license, which is mandatory for any salon to operate legally. In addition, each cosmetologist working in the salon must have their cosmetology license readily available. It is important to note that cosmetology licenses can be specialized for hair, skin, or nails, so ensure that your employees have the appropriate certifications. The salon may also need to obtain building approvals from the local building and health departments to ensure compliance with health and safety regulations.

Sanitation and Hazardous Chemicals Compliance

Salons must adhere to strict sanitation and hygiene standards due to the high volume of customers they serve daily. Proper cleaning, storage, and disinfection of equipment and supplies are crucial to prevent the spread of infections and maintain a safe environment for both employees and clients. This includes disinfecting tools between each client, storing brushes and combs in disinfectant, and regularly sanitizing surfaces and fixtures.

Liability and Risk Management

Salon owners must also be aware of their liability in the event of hazards or risks associated with the services they offer. This includes having a readily available first aid kit and ensuring that the salon is properly ventilated due to the use of chemicals and products. Additionally, salons must comply with chemical storage regulations by keeping products in a separate, cool, and dry storage space. Any spillage must be addressed immediately, and all supplies should be kept closed when not in use.

Labor Laws and Employee Rights

Salon owners have a responsibility to comply with labor laws and respect employee rights. This includes displaying labor law posters outlining employee rights, such as equal employment opportunities, minimum wage requirements, job safety, and health protection. Salon owners should also be aware of the Fair Labor Standards Act (FLSA) and ensure that employees are compensated fairly, including receiving tips directly and not having their pay withheld as punishment.

Choosing the Right Legal Structure

When establishing a salon, it is crucial to choose the appropriate legal structure for your business. This can include options such as a sole proprietorship, partnership, limited liability company (LLC), S corporation, or C corporation. Each structure has its own advantages and disadvantages regarding taxation, liability protection, and flexibility. It is important to consult with a legal professional to determine the best structure for your specific circumstances.

Business licensing and registration

Before opening a salon, it is important to understand the various licenses and permits required to comply with local and state laws. The specific requirements may vary depending on the location and type of salon, but there are some standard licenses and permits that are typically needed.

Firstly, a business license is necessary for any salon to operate. This license is obtained from the local government and involves submitting relevant documents, such as a business plan, to demonstrate compliance with safety regulations. An in-person inspection may also be required, depending on the state. It is important to note that some states may have additional license or permit requirements, so it is essential to check the specific regulations in your area.

In addition to the business license, a salon owner may need to obtain a specialized license specific to the beauty industry, such as a cosmetology or beautician's license. This license is typically issued by the state government and may be required for the owner and all employees providing salon services. The requirements for obtaining this license vary by state but generally involve completing a certain number of training hours at a cosmetology school. It is worth noting that these licenses must be renewed periodically, usually every two years.

Another important permit to obtain is the Salon Retail Seller Permit, which allows the salon to sell products such as hair styling and skincare items. Depending on the state, a separate permit may be needed to sell retail merchandise. Additionally, an Employer Identification Number (EIN) is necessary for tax purposes, and it can be obtained for free from the IRS.

To ensure compliance with building codes and health and safety regulations, the salon must also undergo inspections and obtain the necessary certifications. This includes building code compliance certification and health inspection certification, which should be displayed prominently for customers to see.

Furthermore, depending on the location of the salon, a Certificate of Occupancy may be required. This certificate validates that the property is suitable for a salon business, ensuring that it meets specific requirements such as water installation and chemical treatment. Obtaining this certificate involves inspections, including electrical, plumbing, fire safety, and general building inspections.

Lastly, it is important to register the business for state and federal taxes, and quarterly tax payments must be made. Additionally, the salon may need to obtain a local building permit if any improvements or renovations are made to the property.

By understanding and obtaining the necessary licenses and permits, salon owners can ensure they are operating within the legal framework and providing a safe and compliant service to their customers.

Salon licensing and inspections

The legal rules and regulations for salons vary depending on the type of salon and where it is located. However, there are some standards that apply across the board. Firstly, to open and operate a salon, you must obtain a salon license from the relevant state board. This should be done before the opening date of the salon business, and the number of days required varies by state. For example, in West Virginia, it should be 10 days before the opening date. You will need to submit an application detailing information about the opening date, location, and name of the establishment, and pay a fee. If you satisfy all the licensing requirements, the board will issue a temporary permit for the beginning period of the salon, pending inspection.

In addition to a salon license, you will also need a business license from your local government to legally operate your salon. This typically requires submitting documents, such as a business plan, to demonstrate that the salon meets relevant safety regulations. Depending on your state, you may also need an additional license or permit, and you may need to complete a training course to obtain this. You will also need to register your business for state and federal taxes.

If you plan to sell cosmetics, you will need a special license for the salon. Additionally, each salon employee may need to obtain a separate personal license or certification to work, depending on the state. This can range from basic courses on cosmetic services to more extensive courses on treatments such as hair cutting and styling. As an owner, it is your responsibility to ensure that all employees have the proper certifications.

Before opening your salon, you should also check that your intended business location is zoned for a salon, as some areas have specific regulations about the types of businesses that can operate there. Depending on the type of building work you plan to do, you may also need to obtain a local building permit for any improvements or installations.

Once your salon is up and running, the local health department may periodically inspect your salon to ensure you are adhering to their regulations. These inspections will cover areas such as sanitary standards, consumer complaint procedures, commission laws, and operating hours. Some states also have COVID guidelines in place, so it is important to stay up to date with any applicable regulations.

Staff certification

Types of Certifications

The specific certifications required for staff members in a salon will vary depending on their roles and the services offered by the salon. Common certifications include:

• Cosmetology License: This is required for cosmetologists, who provide a range of beauty services such as hair, skin, and nail care.
• Hairdresser/Hairstylist License: Staff performing hair-related services, such as cutting, styling, or colouring, may need this certification.
• Manicurist/Nail Technician Certification: Staff specialising in nail care and treatments should have this certification.
• Barber License: In some states, barbers need a specific license to offer shaving and men's hair services.
• Receptionist/Assistant Certification: While not directly providing beauty services, receptionists and assistants can benefit from certifications that train them in salon management, customer service, and sanitation practices.

Obtaining Certifications

The process of obtaining certifications will vary depending on the type of certification and the location of the salon. Here are some general steps:

• Education and Training: Staff members must complete the required education and training from an accredited institution. This may involve enrolling in a cosmetology or beauty school, completing apprenticeship programs, or taking specific courses.
• Examinations: After completing the necessary education, staff members will typically need to pass a state-approved examination to obtain their license or certification.
• Renewal and Continuing Education: Most licenses and certifications need to be renewed periodically, which may require completing continuing education credits or staying up-to-date with industry developments.

Displaying Certifications

It is important for salons to display the certifications of their staff prominently. This helps build trust with clients and demonstrates compliance with regulations. Here are some tips:

• Visible Location: Display certifications in a visible location within the salon, such as near the reception area or at each stylist's workstation.
• Current and Up-to-Date: Ensure that all displayed certifications are current and up-to-date. Remove any expired certifications and replace them with renewed ones.
• Legibility: Use clear and legible certificates that are easy for clients to read. Consider framing the certificates or displaying them under glass to protect them.

Additional Considerations

• Specialisations: Some staff members may pursue specialisations within their field, such as colour correction, hair extensions, or skincare treatments. Ensure that they obtain the necessary certifications for these specialised services.
• Health and Safety: All staff should receive comprehensive training in health and safety practices, including sanitation, disinfection, and hazardous chemical management. This is crucial to protect both clients and employees.
• Ongoing Training: Encourage staff to engage in ongoing training and professional development to stay abreast of industry trends and advancements. This can help them enhance their skills and provide better services to clients.

Sanitation and hygiene practices

To prevent the risk of cross-contamination, it is imperative that salon owners make hygiene a priority. This includes basic hygiene practices, such as handwashing, as well as more specific practices, like sterilising tools and keeping the salon floor clean. All salon employees must disinfect tools between every client and store them correctly. For example, brushes and combs should be stored in disinfectant, and razors and scissors should be disinfected frequently. Fresh, clean towels should be used for each client, and the salon floor should be sanitised daily.

Salon furniture, such as treatment couches and chairs, should also be thoroughly cleaned between each client. Most salon chairs are made from PVC or vinyl, which can easily be wiped down and cleaned with disinfectant. However, it is important to avoid using any disinfectant containing alcohol, as this can cause the material to become brittle and crack over time.

To avoid cross-contamination, equipment should be thoroughly cleaned after each use. Tools that come into contact with multiple clients, such as combs, brushes, and nail tools, should be cleaned and stored in a clean, dry place when not in use. Single-use items, such as razors and files, should be disposed of in clinical waste containers and not thrown into standard rubbish bins.

Personal hygiene is also important for salon staff. Dirty nails, unwashed hands, and dirty clothes can harbour germs, which could be transferred to clients. Simple practices, such as handwashing and ensuring uniforms are clean, can help to maintain hygiene standards. In some cases, disposable gloves may be preferable to handwashing alone, especially when performing sensitive treatments such as eyelash application or dermaplaning.

To ensure compliance with hygiene regulations, salon owners can create a daily duties checklist to assign tasks and keep a record of when each job is completed. This will help to ensure that nothing is forgotten and that the salon is running efficiently.

Compliance with local zoning laws

• Understanding Zoning Laws: Zoning laws are regulations that dictate how property can be used in specific geographic zones. These laws are enforced by local governments to manage urban growth, preserve community character, and protect public health and safety. As a business owner, understanding these laws is crucial, as they determine where different types of businesses can be located. While salons are generally classified as commercial businesses, it is important to verify the specific zoning laws for your desired location, especially if you plan to operate in a residential area.
• Navigating Building and Health Codes: In addition to zoning laws, you must also comply with building and health codes. Building codes outline requirements for electrical systems, plumbing, ventilation, and accessibility. Health codes, on the other hand, specify cleanliness standards, waste disposal methods, and equipment requirements. Non-compliance with these codes can result in fines or even legal action. Therefore, it is essential to familiarise yourself with these codes and ensure your salon meets the necessary standards.
• Obtaining Permits: The process of obtaining permits for your salon can be time-consuming and often requires detailed documentation. You will need to provide a comprehensive description of your salon services, information about the layout and capacity, and possibly a business plan. A well-structured business plan can demonstrate the viability of your salon and its potential benefits to the local community. It should include financial projections, marketing strategies, and a detailed description of your target market and the services you intend to offer.
• Working with Local Authorities: Collaborating closely with local authorities is essential to ensure full compliance with zoning laws and regulations. They can guide you through the zoning verification process and assist in obtaining any necessary permits. Their help will streamline the process and increase your chances of success.
• Facing Zoning Hurdles: Despite careful planning, you may encounter zoning challenges. If your desired location is not zoned for a salon or if local codes hinder your vision, you can explore alternatives. You may apply for a zoning variance or a conditional-use permit, which would allow you to use the property in a way that is typically not permitted. However, obtaining these permissions can be difficult, and you may need to demonstrate that your business will not negatively impact the community.
• Maintaining Your Vision: While compliance with zoning laws is crucial, don't let it compromise your vision for your salon. It's about finding a balance between meeting legal requirements and creating the salon of your dreams. If a specific location doesn't align with your vision, be open to exploring other areas where you can comply with the laws while still bringing your unique ideas to life.

Frequently asked questions