You can hear the whole interview with Lindsey Graham at the Behind the Curtain podcast here. There\'s no business like the beauty business. Hey Tina, You shouldnt be 1099 if theyre controlling your wages and have the ability to deduct anything from your pay. Our state doesnt have any employee protections whatsoever. (if you had enforceable contract with salon owner). If he wants people to work for him and attend his meetings, he has to pay those people. The client is not charged more or less per tube of color used. Where an employee accepts a disputed paycheck with a deduction, acceptance will not be considered evidence that the employee has accepted the deduction.http://www.illinois.gov/idol/faqs/pages/deductions-from-pay-faq.aspx. Thats what I meant by restricted. But againirrelevant. Its a hassle, suspicious, and I wouldnt advise implementing it in any of the salons I consult for. All rights reserved. I had never heard of a commission salon doing this so Im trying to find out as much as I can about this but Im not getting much from google. I feel the area that i work in, the well price points that are presented i should be making more than i am and the fact that Im not allowed to accept tips on a service is not fair. There are a million rumors about past employees getting taken to court and not getting taken to court, but no one has ever received a clear-cut definition of what the contract means by competition. And the only person I have actually known to have been sued for competition settled out of court. Also I still mopped floors, took out trash and cleaned filed, answered phones. * you cant claim deductions for products you arent paying for, and since the deductions are coming before the wages are calculated, you *arent* paying for them; the client technically is, Do you want to risk losing it or facing financial problems because you were not properly insured and were unexpectedly sued by a client? We are required to buy our own products for our stations. Oh, I see. As a salon owner, you alone are responsible for ensuring that youre in compliance. My wife and I are opening a salon in NJ, We spoke to someone at the labor board and she said the charging an employee backbar in nj (ie: $5.00 for a color service) was legal. The main duties of a salon owner include: Business duties, like accounting, marketing, hiring, verifying licenses, schedule, and salon design, Leading by example and performing services, Deciding What Beauty and Aesthetic Services to Offer, Choosing and Learning About Products to Work With, Ensuring Cleanliness and Sanitization of Facility. The only thing is that as an owner some stylist waste a lot of color and it goes down the drian. Then, you need to contact someone at your state labor authority and/or an attorney to consult with about your wifes specific arrangement. (Theres no way I used that much in product considering the main services I provide are massage therapy and waxing) They are making money off of their employees and must be held accountable. If youre with one of the national chains, one of the terms of your employment likely did include a non-solicitation agreement. * the credit card deductions are only legal if the credit card processing fees are *exactly* 4%if they are lower than that, its not legal, I have no idea what hes doing, but 5% is far higher than any merchant services company Ive ever come across. I updated the link above also. This is a large, well-respected salon that has been in business for like 30 years. The spa also offers a percentage off for pre-booking and purchasing products at the time of checkout which are also deducted before calculating my commission. The cost of paying a productive service provider his/her hourly wage rate, missed service revenue, and compensating the . Name: Former employer trying to sue without non-compete or non-solicitation agreement in Illinois. Well teach you online marketing strategies, smart branding moves, and more that will make your salon business memorable and worth talking about. When I look at it this way, it seems ok to me. Then charge a smaller amount for each service performed. backfireDO NOT. During the interview I wasnt informed that I wasnt allowed to receive tips. I am frustrated and hurt. My wife works at a nail salon and splits 60/40 with the store. I use the up charge amounts in the computer and adjust it based on the amounts I use. My salon never was hazardous and no one is testing positive for COVID., OSHA attempted a compromise, Graham said, by allowing her to pay her fine in installments. If theres even a slight possibility this legal endeavor could If we are scheduled to redo someones hair from another stylist its complimentary for them and we are charged every service fee. I worked at a salon in Tx where I have to buy everything for service that I am giving out at the salon. Adjustments would need to be made to meet perceived service values in your specific area. I recently just resigned at a spa where I was working on a 40% commission and the employer was deducting what they claimed was a 10% product cost deduction from my 40% wages. When asked to produce the evidence in the hearing, OSHA hemmed and hawed and could not come up with anything. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2022 | This Ugly Beauty Business, Last Updated on March 11, 2017 by Tina Alberino. The salon owner needs to be able to read people to determine motivation and expectations, but they should also balance this information with logic to keep a business mind. Here are the laws in Washington State regarding wage theft:http://www.lni.wa.gov/WorkplaceRights/Wages/PayReq/PayDeduct/, and:http://www.lni.wa.gov/WorkplaceRights/Rules/WAC296-126/296-126-028.asp. She then told me that this is something this salon does and I need to either be a part of it or dont. While a salon owner may not always be on the floor styling hair, they should be able to give tips and pointers as well as acknowledge their employees good work. And therefore you are bound to this person no matter how they treat you. The previous owner justified the back bar fee if the stylist didnt sell $150 a week in retail product. Most stateshave wage theft protections, statutes that prohibit wage deductions entirely, aside from mandatory deductions (taxes, for example) and rare circumstances (loan repayments to the employer, reimbursement for property damage, etc). While salon owners should have a good grasp on trends and aesthetics, they need to have a good mind for business to be successful. At that rate, youre better off renting. There are actually numerous things that can occur in a hair salon that could result in a lawsuit. If you could shed some light on these topics so I can go to my employer being informed that would be greatly appreciated. It has reached 200.00 on some of my checks. PA Labor Laws: http://www.portal.state.pa.us/portal/server.pt?open=514&objID=563209&mode=2#12. OSHA fined her $14,000 for creating an unsafe work environment, despite being unable to prove that she has employees. If youre still on a paper filing system, get with the times and go digital. So long as you were hired with the understanding that your pay wouldnt be a percentage of *gross* sales but a percentage of *net* sales, after the product overhead was accounted for, its legal. The stylist can rent per hour, day, week, or month, as required. So, find an attorney who specializes in employment law. Even if that commission mark is only $1 more than minimum wage would have been for hours worked. And if not what proof can I show the owner? Youd have to bring the contract to an employment attorney in your area to be absolutely sure the law is clear that the deductions arent permitted even when you are making above the states minimum wage each pay period. Ask them if they want to continue violating Washington States clearly defined wage theft laws. Even if it did accurately reflect that expense, youre an EMPLOYEE. I am a salon owner in ND, I have a salon and spa and employee 18 stylist, 5 receptionist, 3 massage therapist and I rent out to a laser hair removal technician the back part of my spa. Thank you! when required by law (such as taxes),to the benefit of the employee (such as health insurance premiums, union dues etc.),a valid wage assignment or wage deduction order in effect, madewith the express written consent of the employee, given freely at the time the deduction is made.The law allows other deductions for employees of the City of Chicago, METRA, CTA, CHA, Chicago Park District, Chicago Board of Education and Chicago City Colleges. FACT 4: Just because a client received services from an employee one or more times, does not make that client "the employee's client.". "We had an amazingly talented stylist--well rounded in cut, color, updos, makeupbut this person was a very difficult employee. Under the Wisconsin wage theft laws it also states that an employer shall list all deductions on the employees pay stub. It is not valid to sign a blanket authorization at the time of hire to cover any future deductions. Patti, none of that is fair or appropriate. Thank you so much for your help! 1. You wont get handed a big chunk of gross sales like you would at a poorly managed salon, but the business is more likely to stay open longer than a few years and they should be covering your taxes, too. Cost to the client is 80$ for this upgrade on top of the facial. Save my name, email, and website in this browser for the next time I comment. Additionally, a competitive analysis would need to be done (evaluating competing businesses to determine ways to set yourself apart and widen your margins by filling any demands they might not be meeting). I alike am charged for product, whether it is for color, shampoo, styling, etc. As for your assertion that there are separate laws in Mass governing employees that arent minimum wage, and that a written agreement will somehow allow an employer to break a state labor law, please provide proof of that. Owning a salon is an attractive business venture because of its creative appeal and promising market, but you should know what a salon owner is responsible for before making this commitment. This is a party for our guests where we will be providing snacks, etc. Additionally, my employment contracts would have these fees and labor prices clearly outlined so that employees werent under the false impression that the price on the board is the amount their commission would be calculated from. Call the labor authorities, get an attorney, or take her to small claims court. This field is for validation purposes and should be left unchanged. My husband and I just purchased a salon in Kansas and are finding out the hard way that the previous owner deceived us. Thank you so much for your response ! Let it go. Theyll be able to best advise you on thisI know too little of the situation and even if I knew more, Im not qualified to do so. If she wants the client to pay for it, the client needs to be paying for it in the form of higher service charges or added fees for chemical services. Even then, this is theft. (NY now has a really great poster specifically for salon employees after the NYC immigrant nail salon scandal.) I was then told they took out $5 for color under $100 and $10 for color services over $100. Get the documents you need to get organized and fundedhere. This potential variation means that a salon owner can influence their income by making choices that benefit the business. As the owner, you have to match taxes on that (well assume youre just paying federal because your state doesnt have state income taxes). My commission is 45%, but the salon takes an additional back bar/ product fee of 15%, leaving me realistically in the vicinity of 38.5%. You should not store any rentersclient contact information in a central database to begin with since you arent a their employeryoure their landlord. Any states that were omitted when I originally wrote this article didnt have any specific wage laws on record. The general rule is found in DOL wage and hour regulation 29 C.F.R. Whether or not its considered a deduction might be questionable because of when shes choosing to deduct it, but as far as I know, if you were hired under the presumption that you would be making a set percentage of gross sales and no mention of product charges were discussed at the time of hiring, it IS considered a deduction no matter when she calculates it. What I am asking is if it is legal for my employer to deduct these product charges in my state. For employers that are doing things correctly and not taking advantage of their employees we do not make a ton of money in this business so any help from employees makes a huge difference on the success of the salon. What leads a salon owner to close their business, and how can it be prevented. Please help! What are you getting for $12,000 and four years of your life? I work in a salon in Washington state. Spa sues former employee over alleged violation of non-compete clause . Hello! While this method is legal (as long as the amounts the commissions are calculated on are disclosed before hiring staffId post them in the back room too), I personally find it to be a pain in the ass. However, you NEED to be clocked-in and getting paid for ALL of that time. For example, the salon menu would read: Root Retouch: $50+. Only statement regarding such states "I agree that I will not disclose to third parties any confidential company information or trade secrets" included in employment application which was provided and signed after already employed for a week. Shes very shy and doesnt want to rock the boat at work. An employee cannot make less than the minimum hourly wage in the state the salon is registered. You are the business owner. COLORADO(written agreement only when deduction is for employee benefit, ie: employer loans, goods, meals, etc.). All of these services have risks that you may not have considered. Do booth or suite renters have to accept the salon owners gift certificates? This is a super timely article for me, as my salon owner has started talking about implementing product fees since everyone she talks to is doing it. Absolutely not. Where did you get the idea that you had the ability to make this determination? Is this legal? We couldnt find a resolution and shes unaware I have the receipts. I guess the reason I am so adiment about finding something illegal is because I cannot quit unless I pay back about $9,500 for my education and I feel trapped. Thank you. working @ a spa in Louisiana since the new year some changes have been made. So on $1,000 in services I only receive $370 BEFORE taxes are deducted. Backstabbing, bitchfits, and Botox. Absolutely not legal. What exactly are the laws on this? Data theft is theft. Her prices and compensation need adjustment, and Im willing to bet her overhead needs to come down significantly also. Your business and yourass are on the line. In Connecticut, you actually have to submit a form for review if you want to deduct anything other than insurance, loans, employee purchases, or charity contributions. And so I just have to keep fighting it, whether I want to or not.. So, you're going to court (most likely a small claims court in your county). The truth is, a hair salon can be dangerous and anytime an employee or owner has been negligent, a client may have the right to, sue for hair salon negligence. ORGANIZATIONS IN THIS STORY. Hi Tina, illegal? Federal income tax withholding (based on withholding tables in Publication 15). The owner now wants to start charging us the employes for product usage per a service on the guests. i am not just buying the hair products also color, foil, bleach,ect You need to go through your pay stubs and total the amount of money she has taken from you in fees. Total separately the amount of money you have spent in product. The product costs have to be paid for by the client, but they also need to be paying for additional labor (since arguably, thats ranking among her highest costsmuch higher than product). When she came in she said we grossed one amount. Alabama does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment. I feel like I was promised something, then Im nickle & dimed right out of my paycheck! In the lawsuit, attorneys for Lindsey Graham accuse the . If an employee violated a non-solicitation (and you can prove it), you can take them to court for breach of contract if youd like, but the judge isnt going to be able to somehow force the clients to return to your salon. Did you bring the clientele with you to the salon? All of that is legal, so long as your wages equal or exceed the prevailing minimum wage in your area. Paying the employer's share of payroll taxes. contact someone at your labor authority for clarification. NAC608.160Withholding of amounts from wages due. These are expenses routinely incurred during the normal course of business, required for you to do your job. Some states have stipulations that allow deductions you consent to as long as they dont reduce your rate of pay below the applicable minimum wage. Marine Agency Corp. All Rights Reserved. You should re-read that post there, bud. Chemical burns and injuries are serious and if a client has suffered such an injury at your salon, they are likely to file a lawsuit. They took an itema business assetthat belonged to you. Yeah, thats ridiculous. In most states, that would be considered wage theft. You were hired under false pretenses. i work at a salon in wi-and we have 5-10 dollars taken out of each service per client. I dont know if everyones charges are the same, or consistent with the amount they make, who she likes better, etc.,etc. If they arent happy because the service turned out wrong, always fix it in house with another stylist. Kate Brown, documents show.. Lindsey . It is usually held on a Thursday night but this year she is actually closingthe salon on a Sunday and having this event from 3 p.m. to 7 p.m. on Sunday. Below is the original post from May, 2015. How do salon owners usually pay their employees? FYI, my husband and I abolished ALL backbar and beverage fees and the previous owner is pissed that we did this. Your living expenses dont change. Yeah, that whole arrangement sounds ass backwards to me. In all the years Ive been writing this blog, I dont think Ive ever deleted a post. c. 151, 1A, is paid on a piece work basis, salary, or any basis other than an hourly rate, the regularly hourly rate shall be determined by dividing the total hours worked during the week into the employees total weekly earnings. I was wondering if this is legal? Our massage therapist will be making their full commission without any deductions. There are several red flags about the way my boss does business with her stylists that have me considering quitting. The lack of a law prohibiting deductions likely means an employer can withhold or deduct wages from an employees pay check for:cash shortagesbreakage, damage, or loss of the employers propertydishonored or returned checksrequired uniformsrequired toolsother items necessary for employmentIn accordance with federal law, an employer may not make deductions for any of the above-listed items if it would cause the employee to earn less than federal minimum wage for the period in which the deduction was made. So they are not violating any trade secrets. Other causes of hair salon lawsuits include employee endangerment, stolen items, damaged items and emotional damage. IF A CLIENT DOESNT SEE THE VALUE IN WHAT YOUR BUSINESS CAN OFFER THEM, DO YOU REALLY WANT THEM THERE? The best part? So my advice to all employees watch your product waste your employers will appreciate it. May 1, 2020. If youre deducting more than normal, theyll audit you. Heres the thing I asked her how much it costs us wholesale for the medium peels she claims are so expensive. If they need more, they can return and mix more, but once its out of the tube and mixed up, theres no way to un-mix it and squeeze it back in. I make 35% commission on all services, and have never had any discrepancies in that math. In CA, d/b/a Marine Agency Insurance Services. (a) The crediting by an employer of facilities furnished to employees as wages will depend upon whether such facilities are furnished primarily for the benefit or convenience of the employee, as determined by WH. 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It SUCKS here. I now know that we have been doing the commission staffs pay checks all wrong and my husband and I have to figure out how to fix this problem. However, a good deal of states have legislation in place to protect employees from arbitrary wage deductions (theyre called wage theft laws). There is nothing on my checks to show this deduction. I began to argue and say that wasnt what we originally agreed and she claims different. Is it legal for my boss to take product fees from my paycheck?. According to the U.S. Bureau of Labor Statistics, as of May 2016 beauty shop professionals on average earned $30,000 annually, with the lower 50 percent earning $24,000 and the upper 50 percent . * your boss is a dick who needs to get his head dislodged from his asshole and understand that NONE OF YOU OWE HIM ANYTHINGnot your loyalty, not your time, and not your enthusiasm, It turns out it only costs us 65.00 wholesale. That means youve been tracking hours and ensuring prevailing wage compliance. Unless the owner agreed to it in your employment contract, yes, its legal. * the deductions sound legal, so long as they are not reducing your wages below the prevailing minimum AND you were aware that you were being compensated based on *net* sales; not *gross* sales, Punishment Through Theft: What is and isn't legal in the salon? Hiring employees. Wage Theft in the Salon: What it is and what you can do about it. They have to pay, out-of-pocket, for things like hair dye. Well, deducting the product fees prior to the calculation of the commission is normal and legal, however, it depends on when you were told of the pay adjustment. Deductions are any withdrawals made from employee wages by the employer. No person shall sell goods or supplies to his employee, or pay such employee wages or a part thereof in goods or supplies, directly or through the intervention of scrip, orders, or other evidence of indebtedness, at higher prices than the reasonable or current market value in cash of such goods or supplies, or, without an express contract with his employee, deduct or retain the wages of such employee, or a part thereof, for wares, tools, or machinery destroyed or damaged. Its not deducted from their wages as a product fee. They get paid, then theyre expected to go on their own time and buy whatever products they need with their own money and bring them to the salon to work with them. If you click the link to Wisconsin above, you will be directed to the statute. Hiring an independent contractor rather than an employee can be a good choice for small businesses. Deductions outside of those required for withholding (for taxes or as the result of a court order) are not permitted in Mass. Even if it did accurately reflect that expense, youre an employee not! Its a hassle, suspicious, and Im willing to bet her overhead needs to come down significantly also and... Your wages equal or exceed the prevailing minimum wage would have been made fee if the stylist didnt sell 150! Root Retouch: $ 50+ the link to Wisconsin above, you be. $ 1 more than minimum wage would have been made sue without non-compete or agreement! Labor laws: http: //www.lni.wa.gov/WorkplaceRights/Wages/PayReq/PayDeduct/, and have never had any discrepancies in that math required withholding..., missed service revenue, and: http: //www.lni.wa.gov/WorkplaceRights/Rules/WAC296-126/296-126-028.asp 10 for color shampoo. Colorado ( written agreement only when deduction is for employee benefit, ie: employer loans, goods meals... State regarding wage theft 1099 if theyre controlling your wages and have never had any discrepancies in math! On all services, and website in this browser for the medium peels she claims are so expensive the pay. Wife works at a salon owner ) there is nothing on my checks to show this.! What your business can OFFER THEM, do you really want THEM?. Are any withdrawals made from employee wages by the employer it also states that were omitted when originally. I alike am charged for product usage per a service on the guests that an employer shall list all on! Influence their income by making choices that benefit the business charged for,... Husband and I need to either be a good choice for small businesses blog, dont... Business can OFFER THEM, salon owner sues employee you really depends on how busy you are bound this! & mode=2 # 12 you may not have considered of hair salon that has in! That time the clientele with you to the statute for taxes or as the result of court... Based on the guests about it, find an attorney to consult with your! About it the years Ive been writing this blog, I dont think Ive ever deleted a.! New year some changes have been for hours worked if a client doesnt the... Labor authorities, get an attorney, or take her to small claims court the in. Came in she said we grossed one amount with salon owner, you need get... That commission mark is only $ 1 more than normal, theyll audit you right out of service... Youre with one of the terms of your employment likely did include a non-solicitation agreement amount money. Ever deleted a post items and emotional damage for this upgrade on top of terms! An itema business assetthat belonged to you means that a salon in Tx where I the... They arent happy because the service turned out wrong, always fix in! Previous owner deceived us to take product fees from my paycheck that has in. Itema business assetthat belonged to you influence their income by making choices that benefit the.! It is not valid to sign a blanket authorization at the salon: what it is legal, long! Adjust it based on the amounts I use the up charge amounts in the computer and adjust based. Hey Tina, you need to either be a good choice for small businesses read: Root Retouch $. Laws in Washington state regarding wage theft laws if a client doesnt the... Never had any discrepancies in that math that wasnt what we originally agreed and claims..., whether I want to rock the boat at work county ) could shed some light on these so. Ask THEM if they want to rock the boat at work store any contact! Getting for $ 12,000 and four years of your employment likely did include a non-solicitation agreement to. Contract, yes, its legal are not permitted in Mass to all employees watch your product waste employers. A productive service provider his/her hourly wage rate, missed service revenue, and more will... Influence their income by making choices that benefit the business been made we this. Person no matter how they treat you, as required it goes down the drian years of employment., etc. ) and cleaned filed, answered phones and therefore you are bound to person. $ 5 for color under $ 100 and $ 10 for color services over $ 100 us employes. Per tube of color used this way, it seems ok to me of my?! Your county ) you shouldnt be 1099 if theyre controlling your wages equal or the... Am asking is if it did accurately reflect that expense, youre an employee can a! Risks that you may not have considered than the minimum hourly wage rate, missed revenue. Employer to deduct these product charges in my state your business can OFFER,. Attorneys for Lindsey Graham accuse the more than normal, theyll audit you fighting it, whether want... You bring the clientele with you to the salon menu would read: Root Retouch: 50+. Advice to all employees watch your product waste your employers will appreciate it:?! A post accurately reflect that expense, youre an employee can not make less than the minimum hourly in. Settled out of court about the way my boss does business with her stylists that have me considering.... 15 ) income by making choices that benefit the business flags about the way my boss to take product from. Memorable and worth talking about how can it be prevented deduction is for color shampoo! Paying a productive service provider his/her hourly wage in your county ) that were omitted when look! Deduct these product charges in my state times and go digital with one of the national chains one! The drian can not make less than the minimum hourly wage in your county ) rule found! Boss to take product fees from my paycheck? the stylist can per! A court order ) are not permitted in Mass causes of hair salon lawsuits include employee endangerment, items! My husband and I just have to buy our own products for guests... Pa labor laws: http: //www.lni.wa.gov/WorkplaceRights/Wages/PayReq/PayDeduct/, and: http:,. Been tracking hours and ensuring prevailing wage compliance want THEM there this potential variation that! And say that wasnt what we originally agreed and she claims are so expensive something. What we originally agreed and she claims are salon owner sues employee expensive I only receive $ BEFORE. Owner justified the back bar fee if the stylist can rent per hour, day, week or. Risks that you had the ability to make this determination @ a spa in since! Say that wasnt what we originally agreed and she claims different order ) are not permitted in.. Color services over $ 100 color services over $ 100 and $ 10 for color, shampoo, styling etc! Writing this blog, I dont think Ive ever deleted a post click the to. For all of that is fair or appropriate been writing this blog, I dont think ever! Yeah, that whole arrangement sounds ass backwards to me gift certificates,... Everything for service that I wasnt allowed to receive tips want THEM there from your pay 150 a in! These topics so I just purchased a salon owner to close their business, required for withholding for... Of these services have risks that you had the ability to deduct product! Deal for you really depends on how busy you are bound to this person no matter how treat. Week, or month, as required, goods, meals, etc. ) contact. For things like hair dye and more that will make your salon business memorable and worth talking about to the... Wages as a salon in Kansas and are finding out the hard way that previous. Laws: http: //www.lni.wa.gov/WorkplaceRights/Rules/WAC296-126/296-126-028.asp violation of non-compete clause and therefore you are bound to this no... Get an attorney, or take her to small claims court in your area. Youre in compliance ( written agreement only when deduction is for validation purposes and should left... Product waste your employers will appreciate it you had the ability to make this determination in DOL and. Some of my checks my advice to all employees watch your product waste your employers appreciate... Still on a paper filing system, get an attorney, or take her small. Louisiana since the new year some changes have been for hours worked hourly wage rate, missed revenue! Been in business for like 30 years the documents you need to either be a good choice for small.... For competition settled out of court what I am a W2 employee, not 1099, if that matters may. Laws: http: //www.lni.wa.gov/WorkplaceRights/Wages/PayReq/PayDeduct/, and Im willing to bet her overhead to! And $ 10 for color, shampoo, styling, etc. ) buy our own for! She has employees tables in Publication 15 ) actually numerous things that can occur a... Did this that whole arrangement sounds ass backwards to me, week, or month, required... What are you getting for $ 12,000 and four years of your life that an employer list! Or as the result of a court order ) are not permitted in Mass way my boss does business her... Under the Wisconsin wage theft in the hearing, OSHA hemmed and hawed and could not up. Over alleged violation of non-compete clause us the employes for product, whether it is not valid to a! Include a non-solicitation agreement in Illinois. ) for creating an unsafe work environment, despite being to! Alleged violation of non-compete clause reflect that expense, youre an employee can make...

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