Eden (YC S15), On-Demand Tech Help, Switches from Contractors to W2 Employees

http://techcrunch.com/2015/08/03/eden-offering-on-demand-tech-help-switches-from-contractors-to-w2-employees/?ncid=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29

by prostoalex • 11 years ago

16 10 11 years ago

techcrunch.com

justizin• 11 years ago

Light the way!

lsc4• 11 years ago

20% more is high, I think, unless they are including health insurance in that 20%, in which case it's low, or unless they are going through a body shop/hr outsorcing scam. Workers comp is pretty minimal for tech workers (though... these people drive to on-site? that could drive up workers comp rates) and the employer side of the payroll taxes are 7.5% Yeah, you've gotta pay someone to figure it out, but that's a job that scales pretty well.

That said, it's an interesting move, I think one we'll see more of. I mean, you provide the end-client a lot more peace of mind if you actually have all the required insurance. That's what I think is so weird about most of the housecleaning "agencies" - most of them 1099 their cleaners... meaning that nobody has worker's comp covering the cleaners, which is a iffy situation for everyone involved.

mcaserta3• 11 years ago

Not to forget about companies offering warehouse movers for businesses as 1099. That's pretty much criminal.

On health insurance, to be precise the cost is $0.10/hour if a worker reaches a precise threshold in weekly hours, so far below 20%.

pravda• 11 years ago

$0.10/hour? You think health insurance for a 2000 hour/year worker is $200?

I think it is closer to $2-$3 per hour.

lsc4• 11 years ago

On health insurance, to be precise the cost is $0.10/hour if a worker reaches a precise threshold in weekly hours, so far below 20%.

If you can get decent insurance for $.10/hr, do let me know, because I'm paying rather a lot more than that right now.

My company has health insurance for all three employees (counting me) - it looks like you are looking at more than $500 and less than $1000 a month, before dependents, for insurance I would consider "not great but good enough" a lot more than $0.10/hr.

But, that varies a lot based on age. Hire some kid in their early '20s, and it will be rather less than $500, and good luck getting a decent plan for someone around 50 for less than a grand a month.

Also, companies will only pay part of the health insurance cost. My company does pay the full cost of the insurance for the worker, for example, but we don't pay anything towards insurance for their dependents. and while the insurance that my company hands out isn't exactly great, there are way shittier health plans available.

Yeah, I'm not getting where you are seeing the $0.10/hr. Maybe you mean if the employer just organizes the health insurance, and makes the employees actually do all the paying for it? but in that case, there's really no point in the employer offering health insurance at all, Now that the ACA allows people with pre-existing conditions to buy health insurance, the value that an employer provides by paying for your health insurance (rather, say, than just giving you the money and letting you get your own insurance) is that if your employer pays, it comes out pre-tax, which is huge.

7Figures2Commas• 11 years ago

In other news, Bubba's Seafood Restaurant in Kalamazoo today announced that it will be complying with all food safety regulations, including the Kalamazoo County Sanitary Code.

Bubba Smith, proprietor, explained his company's innovative decision to follow the law. "If you ordered a shrimp cocktail at Bubba's for your parent or grandparent, these are precious people. You'd want to know that the food was being prepared properly and that the kitchen staff wasn't exposing your family to trace amounts of fecal matter because they didn't wash their hands properly."

Smith says he was also inspired by startups in the San Francisco Bay Area, which have been trailblazers in abiding by long-standing state, local and federal laws that have traditionally been ignored by less innovative companies. "These startups really show that it pays to do the right thing right from the beginning and not just to do it because of the threat of fines and lawsuits."

mcaserta3• 11 years ago

I am happy to see Eden following the path of BlueCrew and switching to a W2 model. This is the future of the on-demand economy. Customers should be aware the hiring a misclassified 1099 worker is illegal and risky

Eden (YC S15), On-Demand Tech Help, Switches from Contractors to W2 Employees

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