can you tie paid vacation benefits to sales or productivity

[coco1965]

What is the name of your state? South Carolina

My husbands owns a Hair Salon with 1040 employees. Can we legally tied the employees paid benefits into their productivity/sales.

For example if based on lentght of employment the employee is eligible for two weeks paid vacation can we also base it on if they have reached a preset sales goal of X?

[cbg]

As long as you apply it across the board, yes. But it would seem to me that administration would be a nightmare, and I wouldn't be surprised if you lost a lot of employees to establishments who are more recognizing of an employee's need for the occasional break.

[LeeHarveyBlotto]

That's a really big salon.

[coco1965]

Originally Posted by cbg

As long as you apply it across the board, yes. But it would seem to me that administration would be a nightmare, and I wouldn't be surprised if you lost a lot of employees to establishments who are more recognizing of an employee's need for the occasional break.

Thank you - the great news is that no one in the industry in our area offers any benefits at all.

[ecmst12]

Having a set amount earned by seniority, but a chance to earn more (like a bonus) through productivity would probably improve morale though.

[pattytx]

Over a thousand employees???????????????? HUH????????????????????

[Gadfly]

I think she means W-2 vs 1099 and because they file on a 1040. . .

[cbg]

I think it's an asinine policy that you will live to regret implementing. But it's none of my concern if you want to cut your own throat.

[pattytx]

Originally Posted by Gadfly

I think she means W-2 vs 1099 and because they file on a 1040. . .

Um, so do employees.

I thought maybe she meant that, too. In that case, why is the company offering benefits anyway? That is a strong indication of an employee-employer relationship.

[eerelations]

Absolutely correct. Independent contractors should not be getting any benefits, including paid vacation. If the salon owner starts offering paid vacation (no matter what it's tied to) to his independent contractors, he will find himself in deep doo-doo with the DOL and the IRS.

If this salon owner wants to reward his independent contractors, he should restrict the rewards to cash only.