Tenant Compliance Guide

1. Tenant Licensing Requirements

Valid Virginia License Required

All tenants must hold a valid license from the Virginia DPOR (Board for Barbers and Cosmetology).

Accepted License Types:

License Requirements:

• License must be CURRENT (not expired, suspended, or revoked)
• License must be for Virginia (out-of-state licenses not valid)
• License must be for the services offered in the suite
• License renewal: Every 2 years

Continuing Education (Effective January 1, 2026)

• Requirement: 6 hours of continuing education for license renewal
• Applies to: Individual practitioners (not facility operator)
• Verification: Tenant responsibility to maintain compliance
• Facility action: Remind tenants of renewal deadlines

License Verification Process

At Move-In:

1. Request copy of current license (front and back)
2. Verify license status via Virginia DPOR online lookup
3. Confirm license type matches services offered
4. Record license expiration date
5. Store copy in tenant file

Ongoing:

• Track license expiration dates (60-day advance notice to tenant)
• Annual verification of license status
• Immediate action if license lapses (see Default provisions)

Virginia DPOR License Lookup: https://www.dpor.virginia.gov/LicenseLookup

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2. Tenant Insurance Requirements

Required Coverage

Policy Requirements

• Named Insured: Tenant's legal name or business entity
• Additional Insured: Luxa Salon Suites LLC must be listed
• Certificate Holder: Luxa Salon Suites LLC, [address]
• Notice of Cancellation: 30-day advance written notice required

Verification Process

At Move-In:

1. Request Certificate of Insurance (COI)
2. Verify coverage limits meet minimums
3. Confirm Luxa Salon Suites LLC listed as Additional Insured
4. Verify policy is current (not expired)
5. Record policy expiration date

Ongoing:

• Track policy expiration dates (60-day advance notice to tenant)
• Request updated COI annually or upon renewal
• Immediate action if coverage lapses (see Default provisions)

Recommended Insurance Providers

These providers specialize in beauty professional insurance:

Tip: Many providers offer bundled professional + general liability policies.

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3. Tenant Sanitation Responsibilities

Equipment Requirements per Suite

Per 18VAC41-70 (Virginia Administrative Code), each workstation must have:

Disinfection Protocol

Tenant must follow this process:

1. Wash — Clean implements in hot, soapy water
2. Disinfect — Immerse in EPA-registered disinfectant solution
3. Store — Place in closed, dry cabinet (no other objects/substances)

Disinfectant must be:

• EPA-registered
• Effective against HIV and hepatitis viruses, OR
• Hospital-grade tuberculocidal
• Fresh/replaced per manufacturer instructions

Single-Use Item Policy

Items that CANNOT be reused between clients:

• Neck dusters
• Powder puffs
• Sponges
• Styptic pencils
• Lump alum
• Any implement that cannot be sanitized

Tenant responsibility: Maintain adequate single-use supply; dispose properly after each use.

Bloodborne Pathogen Protocol

If blood exposure occurs:

1. Blood-contaminated materials → sealed, double-plastic bag immediately
2. Dispose of in regular trash (not biohazard unless required by scope)
3. Wash and disinfect hands after any blood contact
4. Clean and disinfect affected work surfaces
5. Document incident (recommended, not required)

Hygiene Requirements

Sanitation Compliance Acknowledgment

At move-in, tenant must sign acknowledgment confirming:

• Understanding of sanitation requirements (18VAC41-70 (Virginia Administrative Code))
• Commitment to maintain required equipment
• Agreement to follow disinfection protocols
• Understanding of potential penalties for violations

Reference: 18VAC41-70 (Virginia Administrative Code) Sanitation Requirements

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4. Independent Contractor Compliance

IRS Classification Requirements

Salon suite tenants operate as independent contractors. To maintain this classification and avoid IRS misclassification penalties:

What Facility Owner CAN Require:

What Facility Owner CANNOT Dictate:

Risk of Misclassification

If tenant is reclassified as employee:

• Back payroll taxes (FICA, Medicare, unemployment)
• Penalties and interest (potentially 7+ years)
• Workers' compensation liability
• Benefits obligations

Protection measures:

• Written lease agreement (not employment contract)
• Tenant provides own tools/equipment
• Tenant controls own schedule
• Tenant pays fixed rent (not commission)
• Tenant has multiple clients (not working exclusively for facility)

Lease Structure Guidance

To support IC classification, lease should:

• Be titled "Suite Rental Agreement" or "Lease Agreement" (not "Employment Agreement")
• State that tenant is independent contractor
• Specify fixed monthly/weekly rent (not percentage)
• Confirm tenant controls services, pricing, schedule
• Require tenant to maintain own business insurance
• Require tenant to handle own taxes (Form 1099-NEC if >$600/year)

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5. Lease Clause Recommendations

The following clauses should be included in the suite rental agreement to enforce compliance requirements. These feed directly into Phase 10: Operations Design.

Insurance Requirement Clause

SECTION X: INSURANCE REQUIREMENTS

Tenant shall maintain throughout the Term of this Agreement:

(a) Professional Liability Insurance with limits of not less than
    $1,000,000 per occurrence;

(b) Commercial General Liability Insurance with limits of not less
    than $1,000,000 per occurrence and $2,000,000 aggregate;

(c) All policies shall name Landlord as Additional Insured;

(d) Tenant shall provide Certificate of Insurance prior to occupancy
    and annually thereafter, no later than thirty (30) days before
    policy expiration;

(e) All policies shall require thirty (30) days written notice to
    Landlord prior to cancellation or material modification.

Failure to maintain required insurance shall constitute a material
breach of this Agreement.

License Verification Clause

SECTION X: PROFESSIONAL LICENSING

(a) Tenant represents and warrants that Tenant holds a valid license
    issued by the Virginia DPOR (Board for Barbers and Cosmetology) (or applicable
    licensing authority) for the services Tenant intends to provide;

(b) Tenant shall provide a copy of Tenant's current license prior to
    occupancy and upon each renewal;

(c) Tenant shall maintain valid licensure throughout the Term;

(d) Tenant shall notify Landlord within five (5) business days of any
    suspension, revocation, or lapse of licensure;

(e) Lapse of licensure for more than thirty (30) days shall constitute
    a material breach of this Agreement.

Sanitation Compliance Clause

SECTION X: SANITATION COMPLIANCE

(a) Tenant shall comply with all sanitation requirements set forth in
    18VAC41-70 (Virginia Administrative Code) and all applicable regulations of the Virginia
    DPOR (Board for Barbers and Cosmetology);

(b) Tenant shall maintain all required sanitation equipment including
    but not limited to wet sanitizers, EPA-registered disinfectant,
    and closed dry storage cabinets;

(c) Tenant shall follow all disinfection protocols for implements as
    required by regulation;

(d) Tenant shall maintain Suite in clean and sanitary condition at
    all times;

(e) Landlord may conduct periodic inspections with reasonable notice
    to verify sanitation compliance;

(f) Citations or violations issued by the Virginia DPOR (Board for Barbers and
    Cosmetology) may constitute a material breach of this Agreement
    at Landlord's discretion.

Indemnification Clause

SECTION X: INDEMNIFICATION

Tenant shall indemnify, defend, and hold harmless Landlord, its
officers, directors, members, employees, and agents from and against
any and all claims, damages, losses, costs, and expenses (including
reasonable attorneys' fees) arising out of or related to:

(a) Tenant's use and occupancy of the Suite;

(b) Any services provided by Tenant to Tenant's clients;

(c) Any act, omission, or negligence of Tenant, Tenant's employees,
    agents, contractors, or invitees;

(d) Any breach of this Agreement by Tenant;

(e) Any violation of applicable laws, regulations, or licensing
    requirements by Tenant.

This indemnification shall survive the termination of this Agreement.

Default/Termination for Compliance Failure

SECTION X: DEFAULT AND TERMINATION

The following shall constitute Events of Default:

(a) Failure to maintain required insurance coverage for more than
    fifteen (15) days after written notice;

(b) Lapse of professional licensure for more than thirty (30) days;

(c) Receipt of two (2) or more sanitation violations from the
    Virginia DPOR (Board for Barbers and Cosmetology) within any twelve (12) month
    period;

(d) Any single violation resulting in closure order from regulatory
    authority;

(e) Failure to provide proof of insurance or licensure within ten
    (10) days of Landlord's written request.

Upon Event of Default, Landlord may:
(i)   Terminate this Agreement upon fifteen (15) days written notice;
(ii)  Pursue all remedies available at law or in equity;
(iii) Recover costs of enforcement including reasonable attorneys' fees.

Independent Contractor Acknowledgment

SECTION X: INDEPENDENT CONTRACTOR STATUS

(a) Tenant is an independent contractor and not an employee, partner,
    or agent of Landlord;

(b) Tenant shall control the manner and means of providing services,
    including pricing, products, scheduling, and client management;

(c) Tenant is solely responsible for all federal, state, and local
    taxes arising from Tenant's business activities;

(d) Landlord shall issue Form 1099-NEC to Tenant if required by law;

(e) Nothing in this Agreement creates an employment relationship,
    partnership, joint venture, or agency relationship between
    the parties.

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Compliance Verification Schedule

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Document Templates Needed (Phase 10)

Based on this compliance framework, Phase 10 should develop:

1. Suite Rental Agreement — Master lease with all clauses above
2. License Verification Form — For move-in and renewal
3. Insurance Verification Form — COI requirements checklist
4. Sanitation Acknowledgment — Signed at move-in
5. Move-In Checklist — All compliance items verified
6. Annual Compliance Review — License + insurance verification
7. Violation Notice Template — For compliance failures
8. Termination Notice — For default situations

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Document synthesized from 05-RESEARCH.md. See research document and regulatory-requirements.md for Virginia Administrative Code citations and source links.