The Risks of Worker Misclassification
Every industry has companies that cut corners, and the janitorial business is no exception. One of the most common unethical practices in this field is misclassifying employees as independent contractors to reduce tax expenses. Not only can this be illegal, but it also often leads to worker exploitation, particularly among immigrant employees.
Case Study: Jan-Pro in Washington, DC
A high-profile case in 2022 put a spotlight on this issue in Washington, DC. The DC Attorney General’s Office found that Jan-Pro was running a “multilevel franchising scheme” that misclassified janitorial workers as independent contractors. The company marketed “franchise agreements” to workers, promising financial independence and business ownership. However, in reality, these individuals operated as employees but were denied proper wages and benefits under local labor laws.
When a cleaning company has control over workers’ schedules, pay rates, and job expectations, those workers are legally considered employees. By classifying them as independent contractors instead, Jan-Pro avoided paying employment taxes and forced the financial burden onto the workers. As a result, many employees earned less than the minimum wage.
The Importance of Hiring a Legal and Ethical Cleaning Company
If you partner with a janitorial service that engages in these questionable business practices, your company may face several risks:
- Reputation Damage – If a lawsuit becomes public, particularly one involving worker mistreatment, your company’s reputation could suffer.
- Service Disruptions – Legal issues might force your cleaning vendor to shut down or abandon contracts without notice, leaving your business without proper cleaning services.
- Lower Cleaning Standards – Underpaid workers may rush through their tasks to make ends meet, leading to poor cleaning quality.
- Ethical Concerns – If you value fair business practices, it’s important to ensure your vendors follow ethical labor laws.
Should You Work with a Company That Uses Independent Contractors?
It depends. There are situations where janitorial companies can use independent contractors legally and ethically. However, these businesses cannot control how work is performed, limiting their ability to enforce quality standards or make adjustments. If you’re considering a cleaning service that relies on independent contractors, make sure to ask detailed questions about their employment practices to confirm they are operating within the law.
A Smarter Choice: Companies That Hire Employees
A safer and more reliable option is choosing a cleaning company that hires employees directly, supervises their work, and ensures they receive fair wages and benefits. These businesses are more likely to provide consistent service while adhering to labor laws.
While some janitorial companies may offer lower prices by using independent contractors, the potential legal and ethical issues may not be worth the savings. By working with a company that follows the law and treats its employees fairly, you can ensure higher service quality and avoid unnecessary risks.
If you’re looking for a responsible and compliant janitorial service, we’re here to help.
