Think Twice Before Hiring Any Service Contractor To Do Work At Your Home

What exactly is a House Cleaning Referral Agency?

Referral agencies are just as the name implies. They are agencies that refer "Independent Contractors" to customers for different services. One of the most popular services for referral agencies is House Cleaning. Referral agencies are contacted by customers looking for house cleaners. Referral agencies are basically the middle man. They will find you individual cleaners to clean your home.

Referral agencies are NOT the actual employers of these individuals. Referral agencies cannot direct, train or control these individual's work in any way. Referral agencies also don't pay employment taxes on these individuals. Customer's MAY be liable for paying employment taxes if they pay wages over certain tax thresholds while the individual works within their home. Referral agencies are also NOT responsible for paying worker's compensation, liability insurance or bonding.

By not paying taxes or insurance; referral! agencies can typically under price employer based cleaning companies. Several consumers think this is excellent. They can save money. Everybody wants a bargain right? Well, let's take a closer look. A few individuals that agree to work for referral agencies have never had any former cleaning training. They may not have individual insurance or liability insurance. What happens if they get hurt in your home? Is the referral agency going to pay? NO! What happens if the individual breaks your tiffany lamp and the individual does not have insurance? Who pays, the "independent contractor? Good luck trying to collect that debt. Let's go back to the referral agency. Are they going to pay for your lamp? No way! Remember, they only "referred" an individual to you! They will tell you they have no liability.

Often enough the difference between a referral agency and an employer based company is in quality, dependability, professionalism and liability. You may pay a little more fo! r these qualities, but you will sleep well knowing you are usi! ng a lic ensed, bonded and comprehensively insured and professional company.

Referral agencies legally must disclose the fact that they are referral agencies. They must disclose this fact, both verbally and in writing. They must also let the customer know that they may be liable for payment of employment taxes including unemployment insurance and social security for this "Independent Contractor".

Other problems usually encountered with referral agencies, is the situation where the customer is unhappy with the cleaning the "independent contractor" performs. Since the referral agency cannot legally train or direct the work of the "Independent Contractor" - the referral agencies only solution is to send another "Independent Contractor." This is the cycle a customer routinely falls into when using referral agencies.

Employer based companies most often put their employees through a thorough training program. The employee then works alongside experienced workers to gain m! ore expertise on all aspects of cleaning. When you hire a person from a referral agency you have no idea if they have had any training. Remember, the agency is NOT allowed to train, direct or control these individuals. If they do in anyway, they become employers and are responsible for paying all the taxes mentioned above.

The next time you call for an estimate on cleaning you may want to ask if the company carries worker's compensation or better yet just ask the questioný "Are you a referral agency?" Remember when calling for estimates from cleaning companies, you may not always be comparing apples with apples and oranges with oranges. Make an informed decision and hopefully you will find a competent professional cleaning company to put a shine to your home. Please find laws on referral agencies operating in California below.

CIVIL CODE OF CALIFORNIA

1812.5095.

(b) An employment agency is not the employer of a domestic worker for whom it procures, offers, refers, provides, or attempts to provide work, if all of the following factors characterize the nature of the relationship between the employment agency and the domestic worker for whom the agency procures, offers, refers, provides, or attempts to provide domestic work:

(1) There is a signed contract or agreement between the employment agency and the domestic worker that contains, at a minimum, provisions that specify all of the following:

(A) That the employment agency shall assist the domestic worker in securing work.

(B) How the employment agency's referral fee shall be paid.

(C) That the domestic worker is free to sign an agreement with other employment agencies and to perform domestic work for persons not referred by the employment agency.

(2) The domestic worker informs the employment agency of any restrictions on hours, location, conditions, or type of work he or she will accept and the domestic worker is free to select or reject any work opportunity procured, offered, referred, or provided by the employment agency.

(3) The domestic worker is free to renegotiate with the person hiring him or her the amount proposed to be paid for the work.

(4) The domestic worker does not receive any training from the employment agency with respect to the performance of domestic work. However, an employment agency may provide a voluntary orientation session in which the relationship between the employment agency and the domestic worker, including the employment agency's administrative and operating procedures, and the provisions of the contract or agreement between the employment agency and the domestic worker are explained.

(5) The domestic worker performs domestic work without any direction, control, or supervision exercised by the employment agency with respect to the manner and means of performing the domestic work. An employment agency shall not be deemed to be exercising direction, control, or supervision when it takes any of the following actions:

(A) Informs the domestic worker about the services to be provided and the conditions of work specified by the person seeking to hire a domestic worker.

(B) Contacts the person who has hired the domestic worker to determine whether that person is satisfied with the agency's referral service.

(C) Informs the domestic worker of the time during which new referrals are available.

(D) Requests the domestic worker to inform the employment agency if the domestic worker is unable to perform the work accepted.

(6) The employment agency does not provide tools, supplies, or equipment necessary to perform the domestic work.

(7) The domestic worker is not obligated to pay the employment agency's referral fee, and the employment agency is not obligated to pay the domestic worker if the person for whom the services were performed fails or refuses to pay for the domestic work.

(8) Payments for domestic services are made directly to either the domestic worker or to the employment agency. Payments made directly to the employment agency shall be deposited into a trust account until payment can be made to the domestic worker.

(9) The relationship between a domestic worker and the person for whom the domestic worker performs services may only be terminated by either of those parties and not by the employment agency that referred the domestic worker. However, an employment agency may decline to make additional referrals to a particular domestic worker, and the domestic worker may decline to accept a particular referral.

(c) The fee charged by an employment agency for its services shall be reasonable, negotiable, and based on a fixed percentage of the job cost.

(d) An employment agency referring a domestic worker to a job shall inform that domestic worker, in writing, on or before the signing of the contract pursuant to paragraph (1) of subdivision (b), that the domestic worker may be obligated to obtain business permits or licenses, where required by any state or local law, ordinance, or regulation, and that he or she is not eligible for unemployment insurance, state disability insurance, social security, or workers' compensation benefits through an employment agency complying with subdivision (b). The employment agency referring a domestic worker shall also inform that domestic worker, if the domestic worker is self-employed, that he or she is required to pay self-employment tax, state tax, and federal income taxes.

(e) An employment agency referring a domestic worker to a job shall verify the worker's legal status or authorization to work prior to providing referral services in accordance with procedures established under federal law.

(f) An employment agency referring a domestic worker to a job shall orally communicate to the person seeking domestic services the disclosure set forth below prior to the referral of the domestic worker the following disclosure statement:

"(Name of agency) is not the employer of the domestic worker it referred to you. Depending on your arrangement with the domestic worker, you may have employer responsibilities."

Within three business days after the employment agency refers a domestic worker to the person seeking domestic services, the following statement printed in not less than 10-point type shall be mailed to the person seeking domestic services:

"(Name of agency) is not the employer of the domestic worker it referred to you. The domestic worker may be your employee or an independent contractor depending on the relationship you have with him or her. If you direct and control the manner and means by which the domestic worker performs his or her work you may have employer responsibilities, including employment taxes and workers' compensation, under state and federal law. For additional information contact your local Employment Development Department and the Internal Revenue Service."

(g) An employment agency referring a domestic worker to a job shall not specify that a worker is self-employed or an independent contractor in any notice, advertisement, or brochure provided to either the worker or the customer.

(h) Every employment agency referring a domestic worker to a job and who is not the employer of the domestic worker being referred, shall in any paid telephone directory advertisement or any other promotional literature or advertising distributed or placed by such an employment agency, on or after January 1, 1995, insert the following statement, in no less than 6-point type which shall be in print which contrasts with the background of the advertisement so as to be easily legible:

"(Name of agency) is a referral agency."

(i) An employment agency may not refer, in its advertising, soliciting, or other presentments to the public, to any bond required to be filed pursuant to this chapter.

(j) An employment agency may not refer, in its advertising, soliciting, or other presentments to the public, to any licensure acquired by the agency.

(k) Any violation of this section with the intent to directly or indirectly mislead the public on the nature of services provided by an employment agency shall constitute unfair competition which includes any unlawful, unfair, or fraudulent business acts or practices and unfair, deceptive, untrue, or misleading advertising. Any person or entity that engages in unfair competition shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation.

A Perfect Shine is a San Diego Cleaning Company that also provides San Diego Maid Services. We pride ourselves in quality work and can assure your satisfaction. We are bonded, licensed and insured! We are NOT a referral company.