Paying employees cash

Discussion in 'Business Operations' started by Johnny79, Oct 19, 2017.

  1. Johnny79

    Johnny79 LawnSite Member
    from Jersey
    Messages: 203

    How do we compete when my worker tells me his friend gets paid 150 a day cash they want the same thing WTF.

    I have to work harder and do more lawns and probably make the same amount of $
    As the ones sending there guys out and the boss isn't working

    It's every company over here

    How does this stop?
  2. dieselss

    dieselss LawnSite Silver Member
    from NWI....
    Messages: 2,292

    What happens when he gets hurt on the job and company won't cover him?
    Tell your employees your playing by the rules and they are not. One day they will get bit in the behind
  3. flashsmith

    flashsmith LawnSite Member
    Messages: 145

    I run solo. Considering hiring in the spring. I do not agree with the practice but lets look at the owners side.. First off there's absolutely no reason for a lawn care operator to "invest" in an employee. I say this because for 20 years I was a golf course manager and turnover was and still is a huge problem. Our type of work is low paying, hot and it never ends and under valued.. Why invest in someone who more than likely won't last a month or two before they bail or get fired. I know many won't like this but thats the way it is. The only people that will work for you are dropouts and head cases anybody with drive will not stay long..
    oabdu123 and marcusmac99 like this.
  4. North Idaho Dream

    North Idaho Dream LawnSite Gold Member
    Messages: 3,837

    Yea, there is no way that we will employee anyone without insurance. We even insure our 2 boys that work for us and in Idaho you can exempt insurance on direct family members. They enjoy the work and do not want to go to college yet....
    Another thing to let your employee know is that his income is reported which is a good thing because in the event that he is hurt or disabled then it's on his record. I wonder if they 1099 their employees?
    Paying cash is a slippery slope...That company is taking a huge risk!!
    Turn over is an issue in this industry.
    hort101 and Johnny79 like this.
  5. RussellB

    RussellB LawnSite Fanatic
    Messages: 9,963

    So they are paying $18.75 cash per hour? I call BS. Run your business and let the rest turn to dust.
  6. Utah Lawn Care

    Utah Lawn Care LawnSite Bronze Member
    Messages: 1,574

    I pay my crew leader 16. He says he works for his buddy on the weekends who pays cash for 20. With all the crap I pay for on top of the 16 it equals right around 20. By the time my employee gets taxed and everything is taken out of his check only about 14 goes into his account. At the end of the day we just need to worry about ourselves. Build the best company you can legally. If everything is legal you don't need to fear having the great thing you have built being taken from you.
  7. Johnny79

    Johnny79 LawnSite Member
    from Jersey
    Messages: 203

    most of these companies work 10 hr days
  8. .357

    .357 LawnSite Member
    Messages: 10

    More like 12 hour days.. 7 days a week. I haven't had not one day off this entire year. This is how my employer does it. I get paid 14 an hour. I typically take home about 1000$ a week. 400$ of that he writes me a check that we claim as 1099. The rest is cash. Lots and lots of long days. My boss is not in the field with me. He is at his day job all day and literally just forwards me customers requests via text messages. Lazy bastard. We have about 60 mowing accounts. We do anything the customer asks because we'll he doesn't have to do it himself. Lots of $hit work when I am not mowing. By the way I am new here. Nice to meet you all.
    Last edited: Oct 19, 2017
    biodale likes this.
  9. Mitty87

    Mitty87 LawnSite Silver Member
    Messages: 2,309

    That sounds like a pretty horrible deal all around. From the 1099, to 80+ hour weeks, no overtime etc. If you get laid off will you be able to collect unemployment? If you get hurt does he have workers comp for you?

    Doing the math if you were paid overtime you would make $1484 a week and probably take home around $1000 still, but less hassle of being a 1099. With the comfort of knowing you can get unemployment and WCB.
  10. .357

    .357 LawnSite Member
    Messages: 10

    No and no. Hence why I stumbled across this site. I'm preparing to cut him right out of the system he has created. I'm tired of it. Him getting fat off my labor and sacrifices. I'm out mowing in the dark with broken equipment and junk yard trucks while his 70k dump truck is parked in his driveway while he is eating dinner with his family.
    Last edited: Oct 19, 2017

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