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Commission is a formula. That's all. Confusion
abounds because career seekers, and a good
number of business owners and groomers, add
illusion. Right out of the gate we want to
make clear that commission is nothing more
than a formula. Here are some of the illusions
we consistently hear:
I am paid by commission. Therefore I am self-employed.
I am paid by commission. Therefore, I am an independent
contractor.
I pay groomers by commission. Therefore I am
not an employer subject to withholding payroll
taxes from my employees. I must only provide 1099
payments to groomers.
I am paid by commission. Therefore I own the
pet owner clientele I groom.
None of the above is true, even a little.
Commission is not a determining factor for
anything other than how to calculate the gross
wages for employees in the form of a paycheck
subject to tax withholding and
employer-related payroll taxes.
Rarely is a
pet groomer legally an independent contractor.
It is possible to use commission formulas to
figure 1099 payments to true independent
contractors, but the commission adds nothing
to the basis of ruling whether the groomer is
an employee or independent contractor. We
repeat, nothing.
Many
groomers call the shots in grooming businesses
where management is weak or missing. One of
the common attributes where this occurs is
that they are almost certainly paid by
commission. It's strangely empowering. It
feeds the desires of groomers who want to have
the control of owning a business yet none of
the responsibilities. This type of management
relies on commission because they don't have
to make salary guarantees which might
otherwise encourage them to maintain growth
and customer service to keep demand high for
services. We know stories of groomers
departing employment and proclaiming they
are entitled to a copy of their employers'
clientele lists. In some cases restraining
orders had to be secured to prevent groomers
from forcibly removing records. Some of
these groomers claimed that they were paid
by commission and so the clients were
theirs. Commission is nothing more than a
formula, and in truth salaries and hourly
wages are formulas as well. There is no
mystique to them or other benefits derived.
Yet many groomers lust for commission, even
demand it. It's weird actually because they
do not guarantee better earnings, better
working conditions or more empowerment. In
fact, commission guarantees nothing.
Legally, commission is just a formula for
compensation.
Every career seeker can rely on being
misinformed about commission by other
groomers. The odds in infinitesimally small
that another groomer will simply answer
inquiries about commission with the obvious,
and the legal answer, "Commission is formula
to determine wages instead of using salary
and/or hourly wages." The better question is,
"Why does the industry use commission and
where did it come from?"
Origin of
Commission Wages
Do you know the origin of commission wages?
Probably not and I’ve rarely met a groomer who
wasn’t grooming decades ago that knows the
answer. This is very important. If you
understand it and take it to its fullest
expression, you will be a leader in the pack
when it comes to understanding the state of
confusion associated with groomer compensation
methods. If you are going to employ groomers
someday this is vital information.
Historically, commission wages were first
put into place by the owners of grooming
businesses. Do you know that most of today’s
commissioned groomers heartily advocating
commissions believe that they came about from
groomers standing up and demanding them, just
as many do today? No, commissions did not
resolve from worker rights movements. Nothing
could be further from the truth. |
Thousands of groomers are absolutely convinced
commission-based wages earn them the highest
incomes. They may even proclaim that as truth.
However, there is absolutely no industry wide proof
of their claim for all groomers. There are
grooming business owners offering $1,000 a
week or more in the form of guaranteed
salaries. Only a minority of commissioned
groomers earn such incomes year round.
Fifty years ago grooming businesses were
almost entirely one person departments in
kennels, veterinarian clinics or mom and pop
pet stores. Rarely did you see standalone
grooming businesses on the commercial streets
of town. In the 1960s pioneers started opening
the first dedicated grooming businesses along
major roadways or in shopping centers. Most of
them grew with public demand and they faced
having to hire other full-charge groomers. For
most of them, it was a worrisome situation.
Already they were used to paying pet bathers
piecemeal (fixed amount per pet), so what to
do with pet groomers? Piecemeal for
full-charge groomers was the answer. However,
unlike bathing the grooming assignments were
far more complicated. Trying to come up with a
set of piecemeal rates for the most skilled
labor just didn’t work. Enter commission
wages.
What is the
motivation for groomers to prefer the drawback
of straight commission versus guaranteed
salaries even when they understand their wages
will be lower? We can only explain this
disparity in such a limited venue as this
report by resorting to general terms.
