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11626Re: Los Angeles, CA

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  • dts683
    Dec 2, 2007
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      Bob Hrodey wrote:

      > Then you're doing it wrong. Like Sue and Rick, when I see requests
      > for "sub-contractors" at $25-$50/hour who are required to be
      > licensed,insured, etc. I laugh. I also believe that in such a case,
      > your argument about WC expense, employees, etc. have no place in the
      > equation. If I conform to your needs with regard to licensing, etc.
      > I am the one incurring the expense of WC, insurance, admin,
      > mileage, etc. NOT you.


      Bob,

      I agree with everything you said, with the exception of one minor
      point. Having just gone through an insurance audit, I can tell you
      that most PIs do not have workers' compensation insurance. If I
      engage the services of either an individual PI or a PI agency and
      they do not have workers' compensation coverage, I am on the hook for
      paying that premium. Not one of the individual PIs that I engaged to
      do work for me on a subcontract basis had workers' compensation
      coverage; and only two of the PI agencies did. All of them had
      general liability coverage, but that is probably only because the
      state requires it. It doesn't shock me that the individual PIs
      lacked workers' compensation coverage, but you would be surprised how
      many PI agencies, even PI agencies with actual employees, lack that
      coverage.

      The bottom line is that the contractor is more than likely
      left "holding the bag" to pay workers' compensation coverage on the
      subcontractor. On the other hand, it is likely that the contractor
      doesn't have workers' compensation coverage anyway. If the
      contractor does happen to have workers' compensation coverage, the
      rate is probably around 4% at the most. The contractor is still
      going to get away without having to pay matching social security and
      medicare (6.2% and 1.45% respectively) along with federal and state
      unemployment taxes (varies) and general liability insurance (around
      4%).

      I don't necessarily take issue with people offering assignments at
      ridiculously low rates to other PIs. We all have the capacity to
      say "NO" and some of us should exercise it more. It feels good to
      say "NO" to a case or client; and all of us should "just say no" to
      these companies wanting to pay ridiculously low rates. If we all
      just say no, these companies will be forced to change their practices.

      I do take issue with companies that advertise and accept cases in
      states in which they are not licensed. These are the companies we
      all see everyday posting that they "need assistance" with a case in
      ABC City. They should say the following if they want to be close to
      accurate: "We advertise our company on the internet as being a large
      national expert PI agency, so now we have a client in some far away
      state who was dumb enough to believe our bullshit facade. We need a
      local PI willing to do the actual field work for less than half their
      normal rate. By the way, you will have to wait 30 days or more to
      get paid."


      Daniel Schroeder, Licensed Private Detective
      Metro Detective Agency, LLC
      P.O. Box 1050, DeKalb, IL 60115
      Office: (815) 787-1111
      Cellular: (815) 757-8940
      Fax: (866) 727-2051
      info@...
      http://www.metrodetectiveagency.com
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