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(619) 269-1745

(858) 483-8290

 

REFERRAL AGENCIES

Referral agencies are just as the name implies. They are agencies that refer “Independent Contractors” to customers for different services. One of the main services is House Cleaning. Referral agencies are not employers of these individuals. Referral agencies cannot direct, train or control these individual’s work in any way. Referral agencies do not pay any employment taxes on these individuals. The customer MAY be liable for paying employment taxes if they pay wages over certain tax thresholds in your home. By not paying taxes or insurance, referral agencies can  undercut actual employer based cleaning companies’ pricing. A Perfect Shine pays all employment taxes, training, insurance, company vehicles, uniforms, gas, etc… The main differences you will find between a referral agency and a company like A Perfect Shine is in quality and dependability.

 

A Perfect Shine puts all its employees through a thorough training program. Our employees then work along side experienced cleaners to gain more insight and knowledge into 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. Please find laws on referral agencies operating in California below. We offer this information only to allow  the customer the opportunity to make an informed decision when looking for cleaning companies and comparing rates. You may not always be comparing apples with apples and oranges with oranges when you call two different cleaning companies. Make sure to ask if they are a referral agency. They are supposed to divulge this information in a my printed advertising and they must let you know when you call for pricing. Good luck in your search and we hope to gain your business. 

 

CIVIL CODE OF CALIFORNIA

 

1812.5095.  (a) For purposes of this section, the term "employment

agency" means an employment agency, as defined in paragraph (3) of

subdivision (a) of Section 1812.501, or a domestic agency, as defined

in subdivision (h) of Section 1812.501.

   (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.

 

 

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