In many industries, including the janitorial field, some businesses engage in unethical practices. One of the most common issues is misclassifying employees as independent contractors to save money on taxes. This practice can be illegal and often leads to the exploitation of workers, especially immigrants.
A Case Study: Jan-Pro in Washington, DC
In 2022, the DC Attorney General highlighted a major case involving Jan-Pro. The company was found to be running a “multilevel franchising scheme” that misclassified janitorial workers as independent contractors. Jan-Pro enticed janitors with promises of financial independence and entrepreneurial success through “franchise agreements.” However, these workers were actually functioning as employees and were denied the wages and benefits they were entitled to under the law.
If a cleaning company controls the working conditions, methods, and pay rates, the workers are legally employees, not independent contractors. By misclassifying them, Jan-Pro avoided paying certain employer taxes and unlawfully transferred the financial burden to the workers, many of whom earned less than minimum wage.
The Importance of Choosing a Legal and Ethical Cleaning Company
Hiring a janitorial company that uses unethical practices can cause several issues for your business:
- Reputation Damage: A public lawsuit involving mistreated workers can severely damage your company’s reputation.
- Service Disruptions: Legal troubles could cause your cleaning vendor to quit unexpectedly, leaving you without cleaning services.
- Poor Quality: Workers who are underpaid may rush their work to make ends meet, resulting in substandard cleaning.
- Ethical Concerns: If you care about ethical business practices, it’s important to ensure your vendors share those values.
Should You Hire a Company That Uses Independent Contractors?
The answer can be complicated. There are legal and ethical ways for janitorial companies to use independent contractors. However, these companies cannot control the work or specify cleaning methods, which can limit their ability to make changes. If you are considering a vendor that uses independent contractors, thoroughly investigate their business practices to ensure they are operating legally and ethically.
A Safer Choice: Companies That Employ Their Workers
A more dependable option is to partner with a janitorial company that hires its own employees, manages their work, and prioritizes their well-being. These companies are more likely to provide consistent, high-quality service and adhere to legal standards.
In conclusion, while some janitorial companies may offer lower prices by using independent contractors, the potential risks and ethical concerns might outweigh the benefits. By choosing a company that treats its workers fairly and follows the law, you can ensure better service and avoid potential legal and reputational issues. If you’re looking for a reliable cleaning company that meets these standards, we’re here to help.
