Employee issues and problems
June 19, 2012
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Comment
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Ken,
The topic of an installer [employee] doing business on the side is a slippery slope. Our policy is to fire anyone doing business on the side that directly competes with our company. In other words, if we would normally sell it, I pay the employee a handsome commission/referral fee for turning it over and make nothing on the deal rather than have them do it on the side and risk them wanting to go into business or worse yet, start to lie to keep their job. In the past we have probably let go over a half dozen such employees and I wouldn’t be surprised if they read your column and will hopefully cringe from reading this comment. In the interest of sharing in the greater good, I am happy to forward our policy below with your readers that includes protection for both the employee and their immediate family members at a substantial discount to make sure our “family” is taken care of. See below.
MIJAC ALARM policy for installation of security system is as follows: An employee must be employed for a minimum of 6 months before they are eligible to qualify for any alarm system. If the equipment is new, the employee will pay for the cost of the equipment to MIJAC ALARM. If the equipment is “used”, MIJAC ALARM will provide the equipment to employee at no charge.
Please be sure that all paperwork is filled out (this includes a contract, dialer, installation worksheet and office sheet) and that the file is processed through the front office so that an account number is assigned, even if it will not be monitored.
In the State of California, it is unlawful for a licensed alarm installer to be compensated for the installation of an alarm outside of company employment. If you wish to pay an installer to assist you to complete the job, all monies must go through Mijac Alarm’s payroll. You pay Mijac Alarm and Mijac Alarm will pay the installer.
If within six months of receiving equipment, the employee leaves our employ on his/her own accord, the employee agrees to pay MIJAC ALARM $150 for any used equipment. If employee wishes to be monitored through MIJAC ALARM central station, the employee agrees to pay MIJAC ALARM the going monitoring costs (currently $x.00/ month as of x/xx) billed on an annual rate ($xx.00/year). This rate only pertains to the employee’s household.
All other immediate family members will be entitled to a 50% discount on used equipment as well as 50% discount on the current monthly rate, ($xx/month as of x/xx), including service. Any new installation parts will be charged at cost plus 10% for tax and shipping. Installation labor fees for immediate family members will be priced as close to cost as possible. Discounted monthly fees will be billed to the employee using a master billing account who may be reimbursed by his/her family.
Upon leaving MIJAC ALARM, employees and their families (who may be paying a discounted rate) agree to pay the current monitoring fees ($xx/month as of x/xx) at their next regular billing cycle.
Yours for better security,
Steve Sopkin, President
Mijac Alarm
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Question - can you back charge the employee
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Hi Ken,
I work for a small company in Maine where we handle lots of alarm, a/v,
surveillance, and network jobs. Lately we have been having issues with negligence on
the installation of expensive equipment by our techs. Some do not follow the proper
guidelines for install and it leads to damaging or frying the equipment completely.
We give our employees extensive training with numerous resources to install items
correctly.
Beyond rectifying this issue, is there a way to recoup money lost from employee
because of their total disregard to proper install instructions?
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Response
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You can't deduct or withhold wages. You can fire an employee who performs below your expectations and standards.
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comments on problem employees
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In Florida if a complaint were ever filed the company would likely be fined severely for Aiding and Abetting the unlicensed contracting. The state will likely look on it as an attempt to avoid the licensing laws, taxes, etc so it will likely get pretty serious. If an employee has a friend who needs a system why not run it through the normal contract and make them a proper customer . You can offer a "friends" rate and commission the employee as necessary but put it all on the books. You also need to be very concerned that the employee thinks this is OK. I had a 15 year employee and when I got rid of him I found out why his production was always low. He did almost as many jobs for himself everyday as he did for me. I started getting all of his service calls when the customers would all the office and insist on speaking to him after he was gone. It was shocking.
Mike Fletcher
Florida Alarm School LLC
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RE: problem employee and employee permitted to work on side June 2, 2012
This is incorrect and bad advice you gave Prestige Sound and Video [referring to my response in the June 2, 2012 article]. You advised that the employee should use his own contract even if unlicensed. In short: 1. ANY contract, even a Kirschenbaum contract, that the unlicensed contractor uses is void and unenforceable because he is not licensed and therefore the contract is illegal. 2. Since the worker is unlicensed, in most cases he would become the EMPLOYEE of whomever pays him for the unlicensed and illegal act and would NOT become “a contractor independent of the alarm company” as you stated. This is all supported by case law in about every state if not all states.
3. The biggest concern by the subscriber should be that if the unlicensed employee gets hurt on the job the subscriber could end up paying for his medical bills for the rest of the workers life (or his family in the event of death) not to mention paying all his taxes. The subscriber could also have to abate the unlicensed job and have to pay to have it reinstalled. No contract will protect him.
Thanks
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Response
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My advice was that if the employer was not doing the sale and installation then the employer's contract should not be used. If the unlicensed employee wants to use his contract, that's his business and his problem. I was addressing the interests of the alarm company.
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another potential problem employee question
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Ken,
We have an installer who really wants to use an aluminum ladder for inside work because it's lighter to reach high smoke duct detectors for wiring. We are under the impression that only non metallic extension ladders as fiber glass are what OSHA would require. I searched on the Internet but couldn't find a violation of using an aluminum ladder. All sites did strongly suggest to never use an aluminum ladder for electrical work but my tech tells me he is only working on low voltage.
What do you think"
Best regards,
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Response
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I don't know what OSHA requirements are for ladders when low voltage equipment and wiring is involved. Anyone have that information?
On another note however, you should have established policies for work and working conditions and your employees are required to comply and follow those rules, or they risk dismissal. No employee should be permitted to work in a less than safe environment and no employee should be permitted to create a less than safe environment. Recalcitrant workers who refuse to follow OSHA and employer rules risk losing workers compensation benefits and the ability to sue for their injuries.
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Cover employee issues with an Employment Contract.