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You're forgetting workers' comp, which can be very expensive for this particular type of business. I'm in the industry, and can tell you from experience that it
by _sentient 15y ago
You're forgetting workers' comp, which can be very expensive for this particular type of business. I'm in the industry, and can tell you from experience that it can cost between 20 - 25% of a workers' gross pay. There goes his profit margin.
- bhousel 15y agoHow can it cost that much? I pay something like $500 a year for my own workers compensation insurance, because it is required by New Jersey. $10/week is peanuts. Edit: I'm not calling you a liar, just genuinely curious.
- tptacek 15y agoDo you work for a cleaning service? Cleaning services pay anomalously high worker's comp insurance rates (though I too was surprised to hear that it might be 20%).
- bhousel 15y agoI did about 10 minutes of googling since it is my lunch break, and I'm now convinced that your risk rate will only be 20% if you are something like a logger or speedboat racer.
- tptacek 15y agoFrom '_sentient: Car accidents. If you get in a terrible accident on your way from one job to another, that's coverable, and exposes the worker's comp insurer to potentially unbounded liability. It makes more sense now.
- _sentient 15y agoThe cost of workers comp is determined by the type of labor involved. Maids work with potentially hazardous chemicals, are doing physical labor all day long, and also drive a lot from job to job. This makes them substantially more expensive to cover, compared to a clerical employee.