Each State has it's own labor laws and must be followed. Know the TRUTH about paying your staff correctly.
For Details from the IRS on determining an Employee or Contractor visit https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
NAILS Magazine has several articles you can read about the differences. http://www.nailsmag.com/list/topic/independent-contractors
The Ugly Beauty Business- http://www.thisuglybeautybusiness.com/2012/09/know-your-rights-in-salon-employee.html