How it all Started

For the last few years, national cosmetology trade associations and many salon industry publications have been whispering warnings that booth rental cosmetology could — or would change. Most heard the call, thinking sincerely that diligent attempts to keep all businesses separate would satisfy state government. Some never took it seriously because WA State leans progressive and in favor of small business (or at least it seemed to.) Regardless, this sense of security was tested in Jan 2019 when the state’s large community of independently run cosmetology booth renters were put into jeopardy.

SB 5326

WA State Democratic Senator Karen Keiser of Des Moines, introduced a Senate Bill (SB 5326) that solely targeted cosmetologists and ignored all other personal services in the category consisting of estheticians, barbers, hair designers and nail techs. The objective (supposedly) was to create an “even playing field” with competitor salons who have employees working as hair stylists The argument

contended that by eliminating & outlawing booth rental – Keiser would make it “more fair” for traditional commission based salons who have to pay into state safety nets and federal payroll taxes for their employees. The cited inspiration behind the bill was one isolated salon owner in Spokane who complained that salon owners are breaking the law. She contended that encouraging independent contracting/booth rental and still treating hairstylists like employees is deliberately shirking tax liability other salon owners incur. The bill also sought to remove an important tax classification for booth renters which shelters these micro-businesses from dangerous financial audit. To add insult to injury, the bill (in its original, unamended form) would have outlawed renting a booth or chair to fellow small business cosmetologists and therefore, forbid salon space owners from working in their own salon if they lease to colleagues.

Uniting

It is unclear who rang the alarm regarding this bill’s danger to the predominantly female industry— but in this day and age of smartphones and social media — communication amongst strangers happens everyday. Some would say in the age of “being insta-famous,” hairstylists social media savvy is at an elevated level over other professional categories and why activation around this legislation was so strong. In recent years, numerous debates have surged regarding the negative impact of social media on politics and society. In this case, however, Facebook was indeed the

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positive conduit for a massive communication effort by cosmetologists across Washington state. The call additionally went out swiftly to the community via news publications, websites and TV news channels. Over the course of the 2 weeks following the introduction of SB5326, WA state cosmetologists and their supporters signed a petition created by Kristin Carron that swelled to over 90k signatures.

Additionally, Samantha Knowles created a large Facebook group originally titled “Cosmetologists Against SB 5326” (now titled “Cosmetologists of WA United” and is now bordering on 7k members as of June 2019.) This online and central communication channel assisted those who were confused about why this legislation was introduced and needed guidance, instruction and insight into the major impact of this bill. Many discussions ensued and as the nitty gritty was dug into—-, political lines disappeared and elements of support, understanding and action were initiated.

Questions were raised

  • WHY are only booth rent cosmetologists being targeted?

Many became upset and felt attacked as women because many booth rent “cosmos” are mothers and single mothers who need flexible schedules for their families. Why were the Democrats targeting women when women were supposed to be a group they aim to protect?

  • Why were experienced and savvy cosmetology entrepeneurs being told they were breaking the law when they conscientously maintain multiple licenses, follow all Dept of Cosmetology rules and pay all B&O/excise tax as required?
  • Why wasn’t the rest of the category included originally (ie, barbers, nail techs and estheticisans)?
  • How could legislators let a competing business model work to eliminate a free market of service providers?

Discussions around these questions in addition to strategies for contacting legislators began to spread like wildfire on social media, in person and inside of salons.

Resources (phone scripts, bill analysis, marketing videos, & live videos) were created on the FB group to assist comprehension of the bill and its potential effects as well as express the need for urgency to the public. The main message: “We cannot sit by and watch as they take away our businesses’ autonomy.” Cosmetologists spoke with clients, wrote emails to legislators, requested meetings with their district legislators, did media interviews, sent press releases, made phone calls and did what they could over an extremely short amount of time. People were scared that the businesses they had worked their whole entire career to build would be ended by legislation that understood very little about how booth rent cosmetologists operate as self employed small businesses. As a collective– our voices rose in unison and gathered community members all over the state who worked alongside us to bring awareness to the dangers of SB 5326. Noted Partners: Association of Washington Business (AWB), National Federation of Independent Business (NFIB), WA Retail Association and the state’s Republican caucuses.

Together our voices are powerful

Within days, WA cosmetologists received updates that SB 5326 was already being amended due to the constituent backlash towards the sponsors of the bill. They (legislators) conceded by adding barbers to the mix in addition to another amendment prior to public hearing that eliminated the ban on leasing a chair to a cosmetology colleague. The community of cosmetologists in WA state were relieved …. but still not satisfied. The all important tax classification was still at stake and although concessions were great, WA state cosmetologists would not accept a partial victory.

So, on Jan 28, 2019– 100’s and 100’s of cosmetologists and their supporters descended in person to Olympia for the public hearing at the State Senate Labor and Commerce Committee. Some coming as early as 7am and from all over the state to prep to get in line to make sure they were able to attend the event.Thousands of people signed in to testify and a line of professionals stretched from the Senate hearing room outside to the domed building on the Capitol campus nearly a football field away.” South Sound Business. Overflow rooms were filled to capacity and a security officer even remarked that this was the biggest hearing turnout he had seen in over 20 yrs of working in Olympia. Fantastic work WA state Cosmetologists!

The hearing was covered by local TV news as well as livestreamed on the tvw.org website (see link below.) Those who signed up to testify were given a maximum of 2 minutes to state their case for or against the bill. Karen Keiser led this committee as Chair and decided it was important to introduce the hearing by sharing that the bill was not intended to squelch small business and had caused so much furor she supposedly received “threats.” She also stated the salon owner in Spokane also had received “threats.” (It is unclear if this was truth or exaggeration for the cameras to create spin to rehab their image in light of the huge public response in opposition.)

Nevertheless, small business cosmetologists in droves began testifying on behalf of their businesses with impassioned statements which expressed disappointment, sadness, anger and dismay at how this bill would affect and effect their lives. Tears were shed. Frustration was apparent. The consensus from the testimonies? “I follow the law and I worked years to get to the point where I can determine my own schedule and prices. I am self employed. No one tells me how to do my job. You will cause me, my family and my business irreparable harm by eliminating booth rental or removing our tax classification.” (That’s it in a nutshell but for more anecdotal testimony- see the tvw.org link below)

At the conclusion of the hearing, the varied legislators on the committee responded and essentially admitted they had not anticipated such resistance to the bill. They promised to take the testimony into consideration and days later, Keiser issued a press release (link below) that claimed that she had heard the feedback and was not moving forward on the bill. Cosmetologists across WA state felt successful but we already knew there were sharks in the water still coming for us…..

(See following chapters of this blog for more info.)

Resources:

SB 5326 info + analysis: https://app.leg.wa.gov/billsummary?BillNumber=5326&Year=2019&Initiative=false

Jan 28, 2019 Video of Hearing: https://www.tvw.org/watch/?eventID=2019011272

NFIB and AWB Association coverage:

https://vimeo.com/313910641

https://www.youtube.com/watch?v=v73qBChfIiE

https://www.facebook.com/watch/?v=1236764659822073

https://www.nfib.com/content/news/insurance/barbers-cosmetologists-mobilize-against-bill-and-win/

Press Releases from Senator Karen Keiser:

http://sdc.wastateleg.org/keiser/2019/01/28/statement-on-sb-5326s-public-hearing/

http://sdc.wastateleg.org/keiser/2019/01/31/keiser-i-heard-your-concerns-we-are-not-moving-forward/

Media Coverage: