Qualified Remodeler Magazine

SEP 2015

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

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Page 7 of 71

Over the past fe w mont h s, ofcials at the Department of Labor have is- sued a series of memora ndums and "guidelines" ofering import- ant details to more clearly de- lineate the difer- ences between an employee and an outside contractor. Te new guidelines, issued July 15, have shifted a bit to a new "economic reali- ties" test that tends to lump many single-client contractors into the employee bucket. An adjudication of this kind has already cost some companies steep fnes and big bills for back taxes. More recently, the National Labor Relations Board issued a decision that vastly expands the notion of what is known as a "joint employer." Specifcally, organizations that operate as franchises or dealer networks, of which there are many in the remodeling and home improvement industries, and that have an ability to control the employees of subcontractors can be viewed as a joint em- ployer of those individuals. Te implications are dramatic for many of the fastest growing and most proftable companies in our indus- try. Tey take aim at the basic assumptions that undergird work relationships and their related costs. AS IMPORTANT as it is to focus on driv- ing leads for new business and new clients, now is also a good time to consult with your counsel and your tax adviser to check the exact wording of your contract relationships versus these new guidelines. Yes, the gig economy is expanding, but so too are the powerful forces aligned against it. | ver the past several months, I've saved about $15 on each ride to the airport from my home near Chicago. Tis is normally not headline material. But those savings come via the Uber app, which is at the vanguard of a new sector of our economy known as the "gig" economy. Te taxi service I had used for many years is more expensive and more difcult to work with than Uber and its contract drivers. And there are other benefts. 1. With Uber, I can call or text the exact driver as soon as my order is placed. Tis gives me instant contact if I want to clarify the pickup spot. 2. Once the price is set, there is no expectation of tipping. Te price pops up. It's charged to my card and I'm done. 3. When I get to the airport I can dash into the terminal. Tere is no lengthy transaction to process. 4. Lastly, receipts quickly hit my inbox for processing later. THE POINT is this: Technology has created new ways for workers of all kinds (not just Uber drivers) to market themselves, fnd jobs and get paid. Likewise, entrepreneurs and company owners can now contract specialized services with greater ease and good results. Tis is the gig economy, and we know it well in the construction industry where contract labor is a long-established mode of doing business. Now contract labor has migrated to a wider variety of previously in-house services including ac- counting, fnance, marketing — you name it. Te current administration is clearly con- cerned about this trend. It sees more people working independently with fewer protections against potential abuses. It also sees a growing number of people self-employed whose safety nets from employers have gone away. THAT IS why a centerpiece of the Obama administration's policy initiatives during its fnal months in ofce is worker classifcation. Pay Close Attention to Worker Classifcation O EDITORIAL DIRECTOR'S NOTE 8 September 2015 QR QualifiedRemodeler.com Published by SOLA Group, Inc. 724 12th Street, 1W, Wilmette, IL 60091 847.920.9513 Publisher and Patrick L. O'Toole Editorial Director Patrick@SOLAbrands.com Managing Editor Laurie Banyay Laurie@SOLAbrands.com Assistant Editor Kacey Larsen Kacey@SOLAbrands.com Proofreader Nancy Mueller=Truax Audience Development Mike Serino MSerino@magservgroup.com Creative Director & Tracy Hegg Production Manager Tracy@SOLAbrands.com Graphic Designer Cathy Petersen Editorial Advisory Board Stephen Gidley, GMB, CAPS, CGP, CGB, CGR, CPRC, CR Jeffrey Holloway, CKD, CBD, CGR Michael Nagel, CGR, CAPS Scott R. Sevon, CGR, CAPS, GMB, CGP, GMR Donna Shirey, CGR, CAPS, CGP Kenneth P. Skowronski, CR Group Sales Director Paul DeGrandis Midwest Manager Paul@SOLAbrands.com East Sales Manager Beth Emerich EmerichB@SOLAbrands.com West Sales Manager Reed Fry Reed@fry-comm.com National Automotive Tom Lutzke Sales TLutzke@ACBusinessMedia.com Literature Galleries/ Mike Serino Classifieds Mike@SOLAbrands.com Digital Programs Tim Steingraber Manager Tim@SOLAbrands.com Operations Marie Snow Manager Marie@SOLAbrands.com A preferred publication of the National Association of the Remodeling Industry and the NAHB Remodelers Patrick L. O'Toole

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