Commercial Cleaning

The Truth Behind Illegal Subcontracting in the Janitorial Services Industry

Posted by admin | May 26th, 2017 | No responses

The janitorial services industry has fallen prey to dishonest practices associated with the hire of illegal contractors. Avoid companies that employ these practices by learning all you can about this issue.

Illegal subcontracting has slowly infiltrated the janitorial services industry without most people knowing. The methods used to introduce these unauthorized or misclassified individuals to the jobsite are only easily avoided when you know how this practice works.

Without that knowledge on your side, you could unknowingly hire an illegal subcontractor and suffer the consequences despite your lack of knowledge of the matter. Utilize the following guide to only obtain janitorial services from licensed and bonded professionals working for a commercial cleaning company in Arkansas.

Understanding Illegal Subcontracting Methods

Companies who abide by local labor laws have the ability to legally utilize subcontractors on specific jobs. The problem only begins when those companies begin using methods that skirt around the labor laws to save even more money on wages and taxes. Using labor from unauthorized subcontractors and misclassifying workers are the two main methods that turn subcontracting into an illegal practice.

Finding an honest, ethical commercial cleaning company does not have to be hard; take a look at these factors and ask your cleaning company about both of these topics:

Unauthorized Subs

The utilization of unauthorized subcontractors allows companies to avoid having the right credentials for the job in question. The company may utilize several layers of contractors to hide the lack of licenses, bonds, or insurance at any given level, for example. Alternatively, the company may keep several licensed, bonded, and insured individuals on the books and use their credentials to send out other illegal workers to the jobsite to circumvent the labor laws.

Misclassifications

Misclassifications occur when companies require their workers to act as employees, but structure the payments for independent contractors. When an employee is hired for part time office cleaning jobs, the pay should be structured suitably. If the employer remains in direct control of when, where and how the worker performs the job, then an employee classification and pay structure must be utilized. Furthermore, when workers are treated as employees, the company must withhold taxes from the checks and pay their calculated dues as well.

Exploring the Consequences of This Practice

The government does not take the practice of utilizing illegal subcontractors lightly, which causes may companies employing these methods to eventually get caught. The company in question, and its subcontractors, often end up in civil and criminal trouble upon attracting attention of government officials.

If the illegal subcontractors were used to circumvent tax requirements, the company may need to pay back 100 percent of the back taxes plus face up to five years in jail and a hefty $500,000 fine.

The simple lack of employee licenses, bonds, and insurance can cost the company more than $11,000 per individual working illegally. Of course, when these companies go under, your commercial cleaning tasks will go uncompleted, causing a disruption in your business operations as well.

Acquiring Licensed Services from A Commercial Cleaning Company

To avoid falling prey to companies who employ these unethical practices, make sure to verify the license, bond, and insurance covering the individuals who will complete your part time office cleaning jobs. If you need to receive prompt services from an official commercial cleaning company in Arkansas, contact the team at ServiceMaster Twin Cities by calling 877-461-1774. Our professionals always carry the credentials needed to ensure your janitorial services are completed by the book and on schedule.