An important and disturbing development is threatening the yoga community in California.
The California Economic Development Department (the “EDD”) is aggressively targeting yoga studios to determine whether they have properly classified yoga teachers and other workers as independent contractors rather than as employees. The EDD targets industries that are abusing the tax laws, audits and forces re-classification of workers from independent contractors to employees.
I know of eight yoga studios that are being audited in the Bay Area alone and several more that are under audit in Southern California. Although some audits are ongoing, the EDD has imposed substantial fines against yoga studios. I do not know of any studios that have won their audits.