RELATIONSHIP BETWEEN MAGGY MAID, WORKERS AND CUSTOMERS

1. Maggy Maid is “domestic employment agency.” This means that Maggy Maid refers, or attempts to refer, job seekers to domestic work in private homes.  It cannot describe itself as a cleaning company. 
2. A person who is referred to a private homeowner becomes an “employee” of the homeowner. 
3. The employment relationship between the homeowner and the worker can only be terminated by one of them.  Maggy Maid cannot terminate the relationship.  However, Maggy may decline to make additional referrals to a particular domestic worker, and the domestic worker may decline to accept a particular referral.
4. The type of work covered by this arrangement is limited to work in private homes, including cleaning, maid services, babysitting or other domestic services.  A “private home” is defined as fixed places or residence, apartments, hotel rooms, vacation homes, etc.  
   
   Private homes do not include premises used primarily as a business enterprise, such as residential care homes, boarding houses, hotels, hospitals, etc., unless the worker is employed by a resident of the facility and not the owner of the facility.

HANDLING PAYMENTS

1. Customer payments may be paid directly to Maggy Maid.  The payments must be deposited into a separate trust account.   Customer payments cannot be placed in the company’s general business account.
2. Workers must be paid from the trust account.  Workers cannot workers be paid from the general business account.
3. Maggy Maid is entitled to a percentage of the amount the homeowner pays for the work, which can be withheld from the payment made to the worker. 
4. The amount owed to Maggy Maid can be transferred to the general business account.
5. The company is required to set up a “trust account.”  This term is not defined by law, but this requirement is most likely intended to insure that it is easy to connect the three financial aspects of a job referral and confirm that the workers are being paid correctly.  It should be clear:  (a) how much the customer paid for the cleaning or maid service, (b) how much the worker received from Maggy Maid; and (3) how much Maggy Maid earned from each referral. 
6. Maggy Maid does not have to pay the worker if the customer does not pay; nor does the worker owe the company anything if the customer does not pay.

COMMUNCIATION WITH CUSTOMERS

1. Before referring a worker to a customer, Maggy Maid must verbally tell the customer that:  “Maggy Maid is not the employer of the domestic worker it referred to you. Depending on your arrangement with the domestic worker, you may have employer responsibilities.”
2. Within three business days after referring a worker to a customer, the following written statement, in minimum 10-point type (shown below), must be mailed to the customer: 

“Maggy Maid is not the employer of the domestic worker it referred to you.  The domestic worker may be your employee or an independent contractor depending on the relationship you have with him or her.  If you direct and control the manner and means by which the domestic worker performs his or her work you may have employer responsibilities, including employment taxes and workers' compensation, under state and federal law.  For additional information contact your local Employment Development Department and the Internal Revenue Service."

ADVERTISING

1. All advertisements, including through brochures, telephone directories and internet, must state:  “Maggy Maid is a referral agency.”  The statement must be in no less than 6-point type that contrasts with the background and is easy to spot and read.  Here is an example in 6-point type:  “Maggy Maid is a referral agency.”
2. Maggy Maid may not refer in advertising, soliciting or any statements to customers or the public to any bond requirements.
3. Maggy Maid may not refer in advertising, soliciting or any statements to customers or the public to any licensing requirements.
4. Maggy Maid shall not state that a worker is self-employed or an independent contractor in any notice, advertisement, or brochure provided to either the worker or the customer.
5. Violation of these rules is considered deceptive advertising and is subject to a $2,500 penalty for each violation.

RELATIONSHIP with THE WORKER

1. There must be a signed agreement between Maggy Maid and the worker specifying:
1. that Maggy Maid will help the person find work;
2. how Maggy Maid’s referral fee will be paid; and
3. that the worker is free to sign with other employment agencies.
2. The worker informs Maggy Maid of his or her availability to work and the conditions under which s/he will work.
3. The worker can reject any assignment.
4. The worker is free to renegotiate the price with the customer.  (If this causes the price to increase, then Maggy Maid’s share will also increase.  If there is a secret deal between the homeowner and the worker that causes Maggy Maid to receive less than its fair share, that would be illegal, and the company could decline to provide the worker with any more referrals.)
5. Maggy Maid does not provide any training on how to do the work and does not provide any tools, supplies or equipment necessary for the work.  However, Maggy Maid may offer a voluntary orientation session to explain:
1. the relationship between the Maggy Maid and the worker
2. Maggy Maid’s administrative and operating procedures; and
3. the provisions of the contract or agreement between Maggy Maid and the worker.
6. The worker receives no direction, control or supervision from Maggy Maid about the work.  However, Maggy Maid can:
1. explain the customer’s work requests and conditions;
2. contact the customer to determine if he or she is satisfied with the referral service;
3. keep workers informed about when new referrals are available; and
4. ask the worker to tell Maggy Maid if he or she cannot perform a job.
7. Maggy Maid must verify the worker's legal status or authorization to work as required by law.
8. Maggy Maid must inform workers, in writing, on or before the signing of the contract that the he or she may be required to obtain business permits or licenses, where required by any state or local law, ordinance, or regulation, and that he or she is not eligible for unemployment insurance, state disability insurance, social security, or workers' compensation benefits through Maggy Maid.  The company must also inform the worker that if he or she is self-employed, he or she is required to pay self-employment tax, state tax, and federal income taxes.