KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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considering subcontractors v employees
October 27, 2017
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considering subcontractors v employees
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    You need help; the only options are employees or subcontractors.  Sometimes you have no real choice.  For example, if you contract for monitoring you are most likely subcontracting the monitoring services to a wholesale monitoring company, who becomes your subcontractor for that service.  But when we think about subcontractors we are usually focused on installers and service techs.  You can employ the help, or engage the help.  You employ employees and you engage subcontractors.  
What's the pros and cons?
Subcontractors:
Pros
  • are licensed to perform any work they do
  • should license, document or register their employees, as required by licensing laws
  • will carry insurance, including alarm industry E&O and will name you are additional insured
  • will use their own tools
  • will use their own transportation to the job
  • you won't have to cover them for employee benefits
Cons
  • may not be available when you need them [they should be doing their own work or sub work for others
  • may not have all the items above in the pro column, but it's your responsibility to make sure they do
  • you will have less control over their work and conduct
Employees:
Pros
  • they work only for you; they are available and reliable
  • they are trained by you, your way
  • their loyalty is supposedly to you alone
  • long term relationship while they are productive
Cons
  • employee benefits
  • you have to pay them in lean and lucrative times, when you have and don't have enough work
  • compensation can exceed subcontractor rates
  • long term relationship when they are not productive
      Whether you hire employees or engage subcontractors you should document your relationship.  That's accomplished by 
an employment agreement with employees; also employee handbook if you have enough employees
subcontract agreement; you need this for every subcontractor
     You can get the Employment AgreementSubcontract Agreement and Employee Handbook at www.alarmcontracts.com
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com