A cosmetologist is not an employee if there is a written agreement that designates rent arrangements.

• A. The agreement states the amount of rent to be paid to the salon, whether as a fixed percentage of gross receipts or a flat fee.
• B. The agreement states the salon will provide all supplies.
• C. The agreement includes a non-compete clause.
• D. The agreement lists the hours of operation.

Answer: (A)

The key idea is that a written rent arrangement shows a booth rental setup, which is typical of an independent contractor relationship. When the agreement spells out how much rent the cosmetologist pays to the salon—whether as a flat fee or a share of gross receipts—it signals that the person is leasing space and running their own business within the salon, rather than being paid as an employee. In that arrangement, the cosmetologist usually controls their own clients, hours, pricing, and business expenses, and handles their own taxes and supplies. The other details—whether the salon provides all supplies, whether there’s a non-compete clause, or what hours the salon operates—do not by themselves determine whether someone is an employee, so the rent arrangement is the decisive factor.