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Is Your Janitorial Labor Provider Putting You at Risk?

25-July 2022


As the number of contingent workers continues to grow, labor providing agencies are increasingly responsible for the commercial cleaning needs of a diverse range of companies.


Businesses turn to labor providers and recruiting firms for a number of reasons, including:

The right commercial cleaning service can provide great ROI
  • To focus resources on other aspects of Organization.

  • To fill positions quickly.

  • Access a wider range of talent, including candidates with specialized or scarce skills (particularly important during the “skills shortage”).

  • Adjust their workforce to meet changing business demands (such as a one-off project or seasonal demands).

The right labor provider can provide your business with a great return on investment (ROI). On the other hand, partnering with the wrong cleaning company and managing labor standards enforcement incorrectly can expose your company to hidden risk including property damage, insurance claims, loss of insurance coverage, workers compensation, liability exposure, legal risk.



What are the Three Main Considerations an Company's leadership should keep in mind when Contracting a Janitorial Labor Provider Company?

1. Is Your Janitorial Service Provider Sub Contracting their work force?


The janitorial services industry has been hurt by dishonest practices involving the hiring of illegal contractors. To avoid using companies that engage in these practices, learn about the potential problems associated with them. A direct question can prove to be sufficient; "Are you subcontracting any of your workforce?" Is an excellent question to ask during the processes of identifying a Commercial Cleaning Company most suited for the job.

Illegal subcontracting has slowly infiltrated the janitorial services industry without most people knowing. However, the methods used to introduce these unauthorized or misclassified individuals to the jobsite can be avoided. First, by understanding how this practice works and secondly, by asking the right questions when identifying the right janitorial cleaning company.


Hiring an illegal subcontractor could have consequences, even if you're unaware of their status.

2. Is your Janitorial Service Provider Properly Insured?

As a janitorial service provider, you face various risks that require specially designed insurance coverage. Here are some critical factors to consider in your insurance policy:

  • Protection from potential liability losses from accidents, injuries, property damage, etc.

  • Protection from employee theft

  • Equipment breakdown

  • Protection for your own buildings and contents (e.g. storm, fire, or flood damage)

  • Business income loss in the event disaster causes you to rent temporary offices

  • Workers’ compensation in the event of accidents and injuries on the job

  • Health and employee benefits coverage for your staff

  • Commercial vehicle insurance in case of auto accidents

3. Is your Janitorial Service Provider Registered in the Janitorial Registry Database?


The state of California will enforce a registry requirement to ensure janitorial companies follow the law.

Cutting comers in a service industry sometimes means can be incredibly damaging to workers. Workers are cheated of legal wages, exposed to unsafe conditions, and not provided with benefits. Low bids from contractors who cut corners make it difficult for law-abiding janitorial contractors to compete. Therefore the State of California requires all companies that offer Janitorial Services, must register with the Janitorial Registry.

Going forward, building owners and managers will be held responsible for janitors who clean their premises. Additionally, every janitorial contractor must be registered with the Labor Commissioner’s Office. If a contractor is unregistered while under contract with a client company, that client company can be fined up to $25,000.

Its important to be aware of the risks

Conclusion:

While contracting a janitorial service provider is beneficial to the overall functions of an organization, allowing an organization a wide range of advantages and benefits. Contracting with the wrong janitorial service provide can be a costly and messy error. Such mistake can cost your organization more money, time, and difficulty than hiring your own janitorial workforce.

At CSG our success is our partnerships, in an effort to promote an industry that closely follows the rules, regulations and guidelines set out by the state. We share our knowledge in an effort to help our partners be protected and learn to protect themselves from the pitfalls of these risky practices.

Learn More

Raising awareness and practicing legal business practices are some of the few measures companies can take to ensure they do not fall victim to these practices. Learning is an integral part of preventing these risks.


Below are resources to learn more about risks posed by hiring the wrong janitorial service provider, and help to keep such providers from damaging our industry:

  • Janitorial Registry Information (Division of Labor Standards Enforcement - Janitorial Registration Frequently Asked Questions (ca.gov))

  • Risks of uninsured Janitorial Service Providers: (Why your janitorial service should be insured? - CBM, LLC (cbmmaryland.com))

  • Risks of contracting subcontracted Janitorial Services from the Wrong Service Provider: Understanding and Avoiding the Risks of Subcontracting Work - Brunswick Companies

Career

Interested in full-time jobs, part-time jobs, hotel cleaning jobs or California jobs at a safe and compliant company, apply here.

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CSG is a leading facility maintenance provider of outsourced commercial cleaning and managed hospitality services.


Looking for housekeeping jobs, hospitality jobs near you, cleaning jobs, or jobs in the service industry?


Contract Services Group (CSG) is currently looking to fill hundreds of job positions at luxury properties including janitors, porters, housekeepers, and more. If you or someone you know is currently seeking employment, be sure to apply at csgcares.com/jobs.


Looking. for cleaning jobs near you (trabajos cerca de mi o busco trabajo)? #agencias de trabajo Aplique en csgcares.com/trabajos.


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About Contract Services Group, Inc.

Contract Services Group, Inc. (CSG) specializes in providing superior, high quality, sustainable, and reliable commercial cleaning, window cleaning, and related services to a variety of industries throughout the Southwestern United States.

CSG’s official online presence is located at http://www.csgcares.com.

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