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What do you guys think about how this guy runs his business?
I have no problem with it. If he has people working for him the wages must not be too out of line with the market.
With the contractor pay, if the business is in a fairly urban area where a contractor can make several stops in an hour the driver could make $20-$30 an hour or so before taxes and expenses. And if the nature of the deliveries is such that he could use his regular passenger vehicle for the deliveries, so much the better.
If it's a more rural area where the guy is traveling several miles between stops and getting maybe 2-3 an hour, not so much. And even worse if he has to have a separate vehicle like a cargo van to make the deliveries.
As far as the hourly wage goes, I know lots of folks working for $9 an hour with no benefits. Welcome to 2013.
He pays contractors $5 per item / business stop with no other compensation. If a worker makes 5 stops, he gets $25. No mileage, drives his own vehicle, takes a day off with no pay, keeps his own tax records. Just wondering why you would think you should get paid if you take a day off? This set up works for some people that want to produce. They would be considered contractors and are not employees. We did this at a window cleaning company that I worked for 20 + years ago. The employees were paid for what they did.
He pays "employees" only $9 an hour no matter how many stops they make and they drive his vehicles and he pays for the gas. There are no benefits. His bookkeeper deducts for taxes out of their paychecks. If they take a vacation day they do not get paid. If they work 2 hours, they get paid $18, no matter how many stops they make.
Some people may be happy with the $9 an hour. No employer has to offer any benefits. No employer has to offer vacation either. As far as the stops, he is paying by the hour for this situation. It may be better to take the above deal if you can produce more. You are using his assets to produce and for that he will pay you $9 an hour. Why is that bad?
That's it.
Seems like pretty cheap labor to me, but is it ethical to compensate employees like this?
Why would it not be ethical? No one is being forced to work for this guy. You can feel free to go anywhere. Anyone that has a problem with this employer can open up a competing business, pay the employees more, offer benefits and see what happens.
In closing, he has some "old tried and true long-timers" driving his vans and the rest seem to be casual, as-needed contractors or part-time contractors.
What do you guys think about how this guy runs his business?
If the guy has been in business for a long time, is making a profit, and is happy with what he is doing then his business plan is working. His employees are an asset that can stay or go. I would also want to know if his customers are happy with the service.
So? He's paying someone $9 to drive around town and drop off packages. That's more than likely more than minimum wage and it certainly is not a challenging job. His employees are probably happy to get $9 an hour to drive around and not have to think.
If $5 per stop isn't enough, then he wouldn't have any independent contractors working for him. That can add up to quite a bit per hour if the stops are located close to each other.
It's office supplies, so stops are going to be concentrated in the business district and whatever being delivered is not heavy. It is boxes of copier paper, not sofas.
Sadly, employees have put themselves in this position. Many small business people have gone to 'piece-work' compensation packages because, otherwsie, he has a bunch of employees just milking the clock and not creating revenue for his business.
You make something; you get paid. You make LOTS of things; you get paid a LOT. You do nothing but sit on your duff and don't hustle, you get paid nothing.
Welcome to the real world. Amazing how many people can't write their name but can figure out how to fleece the boss. This employer has turned the tables, as from what i see, have many others.
Not surprising. There's a lot of that going on. It's an employer's market right now. Employer's know many people are desperate for work and many people will take those jobs with low wages.
This employer is in violation of the fair labor standards act. That means this individual is a criminal. It is employee misclassification as independent contractor. This action create additional burdens on our society, so that this criminal can profit.
This employer is in violation of the fair labor standards act. That means this individual is a criminal. It is employee misclassification as independent contractor. This action create additional burdens on our society, so that this criminal can profit.
pah. Back up your words with a cite from the law. Someone who gets to wander in on their own schedule, depending on whether or not they want to work fits the definition of most "independent" contractors I've known.
Location: NYC based - Used to Live in Philly - Transplant from Miami
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I guess it will depend on where you live.
In the bigger cities and surrounding suburbs, I think the employer is a bit too cheap. If anything it can be illegal!
I had seen similar experiences. In the situation I observed, most people came and just quit several weeks later. The ones who stayed were the ones who dont have the way out from the situation such as desperate college students and such.
pah. Back up your words with a cite from the law. Someone who gets to wander in on their own schedule, depending on whether or not they want to work fits the definition of most "independent" contractors I've known.
This position is the same as the hourly employees, and in no way are these people being compensated in a way that would consider them as a business owner. No mention of business cards, license to operate in local jurisdiction, ETC.
These business owners take advantage of the people trying to operate honestly within our system. What happens when this person gets in an at fault accident that injures others in their zest? Is this person insured, bonded, and otherwise protecting the public's interest. I think we all know that "Independent contractor" has been a way to skirt the labor laws at the expense of the honest.
You've proven to be anti building code, and now anti labor. Why do we even have a government then? Should we just allow anarchy to rule under your no control standard?
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