Uncovering unethical business practices in the janitorial industry
It is no secret that some companies resort to questionable business practices to get ahead, but it's not just exclusive to a single industry. The janitorial industry is not immune to such practices, with unethical and sometimes illegal activities being common. One such common practice is the misclassification of employees as independent contractors, which allows companies to save money on taxes. This practice often results in exploiting workers, especially immigrants, and can be deemed illegal.
A recent example of this exploitative practice occurred in Washington, DC, in 2022. According to the DC Attorney General's website, Jan-Pro was found to be operating a multilevel franchising scheme that misclassified janitorial employees as independent contractors. The company lured workers into signing "franchise agreements" with promises of financial independence and entrepreneurial success. However, the reality was much different. Jan-Pro controlled the working conditions, such as working methods and pay rates. By misclassifying workers, they avoided employer taxes and forced the workers to bear that financial burden. Many of the workers earned less than minimum wage and were denied their hard-earned wages and paid sick leave, which they were entitled to under District law.
It's important to note that if a cleaning company controls workers' working conditions, methods, and rate of pay, they are considered employees, not independent contractors. By misclassifying workers, companies are engaging in illegal and exploitative practices, which only benefit the company at the expense of its workers.
Consequences of Hiring a Janitorial Company with Unethical Practices
Contracting with a janitorial company that uses unethical practices could lead to several negative outcomes for your business. Firstly, if a lawsuit is filed and workers are mistreated, your company's reputation could take a hit. Secondly, your cleaning vendor may quit without notice, leaving you in a difficult position if a lawsuit is filed. Thirdly, if workers are paid less than the minimum wage, they may rush through the job to compensate, resulting in subpar work. Lastly, if you're reading this, it's likely that you prioritize ethical work practices and expect the same from your vendors.
Should You Hire a Janitorial Company with Independent Contractors?
The answer is not straightforward. While it is legal and ethical for janitorial companies to use independent contractors, their ability to direct work and make changes can be limited. However, suppose you're in the bidding process and come across a vendor that uses independent contractors. In that case, it's crucial to thoroughly investigate their business practices to ensure they operate within legal and ethical boundaries. On the other hand, partnering with a company that hires its own employees, oversees and manages the work, and prioritizes the well-being of its employees is a safer choice. If this is what you're looking for, our team is here to assist you.
