Cleaning the Central Valley and Central Coast areas of California.
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Cleaning the Central Valley and Central Coast areas of California.
Click here for location info. Then follow us on ...

California Minimum Wage Increase and its Impact on Commercial Cleaning

Three Ways Outsourcing Can Save Your Bottom Line

 

On January 1, 2021, the state of California minimum wage was increased to $14.00 per hour for employers with 26 or more employees, and $13.00 per hour for employers with 25 or fewer employees.

Due to this increase, as well as increases in petroleum and cleaning product prices, some businesses have considered changing from outsourcing janitorial services to an in-house cleaning staff. But will doing so truly save your company money?

 

Cal-OSHA and OSHA Compliance

The Occupational Safety and Health Administration (OSHA) is a regulatory agency of the United States Department of Labor. OSHA’s mission is to “assure safe and healthy working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance”. The agency also enforces whistleblower statutes and regulations. Cal-OSHA is a California state agency with a similar mission, and has similar (and, actually, stricter) standards to OSHA.

In order to prepare your business for an in-house cleaning crew, you must follow regulations laid out in over 500 pages of the OSHA and Cal-OSHA compliance handbook. There are also OSHA training courses and documentation that, if not followed correctly, incur heavy fines. There are, in addition, cleaning product usage, storage and documentation mandates that must be implemented.

If janitorial service is not within your company’s line of business, you are placing your organization at considerable liability risk. Will adherence to these extensive regulations truly weigh against the potential outlay for professional cleaning services?

 

Worker’s Compensation

Worker’s compensation covers job-related injury for employees and can be very costly to employers. Did you know that the potential for janitor injury on the job is generally higher than in many other private sector occupations? Within the Worker’s Compensation Insurance Rating Bureau (WCIRB) code, janitorial worker’s compensation base rates are one of the highest. This is not only due to injury but also to fraud claims.

WCIRB’s experience modification—a percentage comparing the loss or claims history of one company to other companies in the same industry and similar in size—shows that a company’s modification rate is heavily impacted if a member of the company’s cleaning staff has an accident due to improper product or tool use, or inadequate training. The higher your experience modification rate, the higher your worker’s comp insurance premium.

Professional cleaning companies have long experience in minimizing the risk of injury. Their staff are highly trained and experienced in safely and effectively performing janitorial duties.

 

Happier Workers Get Better Results

Higher pay leads to better quality work. There is no industry in which this isn’t true—and the janitorial industry is no exception. This is actually the reason minimum wage was increased to begin with. Our employees are paid fair wages and are rewarded for excellence on the job. Excellence on the job translates, in this instance, to excellence in the cleanliness of your business.

It’s a scenario in which everyone wins. While our employees are certainly better off, our clients are serviced with care, urgency and diligence, bringing about the best possible service results.

 

COVID-19 Considerations

The COVID-19 Pandemic has brought cleaning to the forefront, and companies are looking for solutions that keep their staff and clients safe and still fit their budget. JaniTek is glad to consult with you to find that solution. As an example, recently we consulted with a client who was considering taking cleaning in-house. They saw their cleaning budget grow with additional days of service, and the addition of weekly electrostatic spraying. We met with the client and reviewed all the costs associated with in-house service so they could accurately compare. Once the financial comparison was done, the client took a more creative route with JaniTek and was able to meet their goals for a healthy environment and their budget.

 

Lower Costs—Partner With Your Commercial Cleaning Partner

Avoid the considerable risk, cost and additional time in training and supervising your own janitorial crew. By partnering with JaniTek, your company will enjoy all the benefits of a dedicated, expert, and service-focused cleaning company. We will work with you to provide a customized cleaning solution that meets both your company’s needs, and your budget requirements.

 

Contact us to schedule a free consultation today.