Studios classify yoga teachers as independent contractors to avoid benefits

The majority of yoga studios classify their teachers as independent contractors rather than employees, even when teachers work fixed schedules, follow studio-set sequences, and teach exclusively at one location -- conditions that legally define an employment relationship under IRS and many state guidelines. This classification means teachers receive no health insurance, no paid time off, no workers' compensation for injuries sustained during teaching, no employer Social Security/Medicare contributions, and no unemployment insurance. Teachers must pay the full 15.3% self-employment tax (both employer and employee portions of FICA) instead of the 7.65% an employee would pay. For a teacher earning $30,000/year, that is an additional $2,295 out of pocket. The structural reason this persists is that studios operate on razor-thin margins (6-10% net profit is typical) and reclassifying teachers as employees would increase labor costs by 10-12% through payroll taxes, workers' comp, and benefits -- potentially making the studio unprofitable. California's AB5 law attempted to address this but created confusion rather than compliance, and most states have no enforcement mechanism for the yoga industry specifically.