No cosmetologist who has been issued a booth rental permit shall be recognized as an employee by which agencies?

• A. Louisiana Department of Revenue or Louisiana Department of Labor.
• B. The Louisiana Board of Cosmetology.
• C. United States Department of Labor.
• D. Local zoning office.

Answer: (A)

Booth rental puts you in business for yourself rather than as an employee of the salon. When someone rents a booth, they control their own hours, set their own rates, pay the rent, and handle their own taxes and insurance. Because of that independent contractor setup, state tax and labor agencies don’t treat the booth renter as an employee. That’s why the Louisiana Department of Revenue and the Louisiana Department of Labor would not recognize a booth renter as an employee. The board that licenses cosmetology and local zoning focus on licensing and land-use issues, not on payroll classifications, so they aren’t the agencies that determine employment status in this context.