HVACR Business

JUL 2017

Help hvacr contractors master the critical components of business management.

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6 HVACR BUSINESS JULY 2017 www. hvacrbusiness .com Nice is Nice, Until it Costs You Big F or years, a contractor I know let their employees come in to the office, drink coffee and "shoot the breeze" before work began. Seems harmless … until a disgruntled em- ployee le the company and went to the Department of Labor to see how he could "get back" at the company. He told them about coming to the shop and not getting paid until the workday start at 8 a.m. e Department of Labor investigated and found that employees, in fact, were not being paid from the time they arrived. e proposed fine: $250,000. I have no clue whether the Department of Labor will settle on a smaller figure or accept payment terms. e contractor just got his notice. Say good-bye to profits this year. And, maybe even say goodbye to the company if the Department of Labor imposes the total fine and won't accept payment terms. Follow the Rules Most states require you to pay employ- ees from the time they arrive at your shop until the time they leave your shop. is means, if they come back in the aernoon to do paperwork, get parts or "hang out," you have to pay them. at's why technicians go to their first call from their homes. You can start their pay when they arrive at the job. Your tech- nician's day ends when they finish the last job, as long as they don't come to the shop on the way home. Installation crews show up at the ap- pointed time and get their materials quickly. Better yet, materials are loaded on their trucks before they arrive. All the crews have to do is come in and pick up the truck. at takes five minutes. Talk about the job? You have to pay them for the discussion. Clean out their truck? You have to pay them for it. The Cost of Meetings Perhaps you can afford this $35,000 fine instead. Another contractor I know had a reg- ular meeting each Monday morning. e technicians were not paid for the meeting. As in the first story above, a disgruntled employee le the company and went to the Department of Labor. When he found BY RUTH KING PRESIDENT OF HVAC CHANNEL TV FINANCE Can you afford a $250,000 fine simply for "being nice?" Test quicker than ever before www.testo.com/smartprobes with Smart Probe app • Measures high-side & low-side refrigerant pressure & temperatures (simultaneously) of AC/R systems • Compact wireless AC/R test kit works with app using your smart device • Low-loss AC/R system checks No hoses required! Testo Smart Probes Refrigeration Kit

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