Investor · Bushnell, FL · Member since 2016 · 456 posts · 224 votes
How does everyone handle Worker comp when you are a managing partner on a flip ? .. My investing partner has informed me, that i am not allowed to hire any laborers on our flip house .. even for yard clean up .. the property we purchased is a horder house and although the seller is supposed to have it cleaned out by the time we close this week .. I can not see that happening .. I had planned on hiring a few laborers to help me with the clean out and any work that i tackled to save costs and increase profits ..but now i think my only option is to go to a day labor temp agency .. Im pretty sure they cover WC .. or purchase Wc insurance.. here in Fl. What does everyone else do ... ?and if they purchase it .. who do they go through to get it .. recommendations please..
Investor · Charlotte, NC · Member since 2016 · 374 posts · 189 votes
9y
Workers comp huh? I have to admit this is the first time I have ever seen a question like this. I cannot speak for Florida law, but I would be willing to bet that when you higher independent contractors, you don't need to worry about workers comp. Pretty sure that only applies to your employees and it is provided by the state. What is the justification of your investing partner for this and does it really matter once the deal is done?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
Yes, labor services provide wotker's comp.
@Account Closed If the "independent contractors", including guys standing on the corner, you hire don't have workers comp for their employees and they get hurt, you as the owner or gc are utlimitately liable.
Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
9y
@Wayne Brooks has it right, these day laborers are not insured, they come work for you that makes you liable if anything happens. the labor temp place will take care of all that, you pay the place for the guys and you have records of it so you can take it off on your taxes, you hire a day laborer that's hard to prove if you are ever audited. I am a General Contractor, but i will not even do the work myself on my investments ( one because my properties are to far away to make sense for me to do) but i have all the records for tax reasons and i do not have to worry about the liability and workers comp, plus i hire local contractors that become part of my team and there if i need them.
@Account Closed If the "independent contractors", including guys standing on the corner, you hire don't have workers comp for their employees and they get hurt, you as the owner or gc are utlimitately liable.
I am finding this discussion very intriguing. I have 7 rentals and workers comp has never been something I consider. Of course, my current labor is a homeless guy I am helping but that is another story. It isn't as bad as it sounds. He does great work, but just can't manage him money well. I had figured that if someone got hurt, they would go after my home owner's policy and then once exhausted my umbrella. I will do some digging into workers comp law in NC and see how I feel about it. The reality of the situation is that I am not able to hire a legit company that would have this to work on my homes. In the near future, I probably will, but just not now. I think many people are in the same boat.