Is it okay to side work if I'm employed for someone in that field already? We're going
to talk about what side work is, if it’s illegal, and when it might be okay
to do it. INTRO
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as they come out. In my state it’s illegal to perform your
normal blue-collar construction jobs like plumbing, electrical, HVAC, carpentry, windows,
roofing and other handyman type jobs if you are collecting more than $500. If you were
looking for the answer to whether or not it’s illegal, it is.
Just like so many other people who entered the trades, I thrived on any knowledge I could
gain in my field to be as good as I could be. I was just appreciative of having a job
I could dependably go to and have work on a steady basis. All I wanted to do was earn
the respect of my peers and be considered someone customers would ask for, and managers
would send to the tough jobs. As people settle into their jobs though, they
become complacent. They start getting itchy and looking for more. “I can do this! I
can change out that part on this air conditioner for less money than the company I work for
and make way more than my hourly pay for doing it.”
Here's what side work is. One time I was at a house, and I quoted the customer $275 for
a part that only cost my boss about $25 online. They asked me if they bought the part, would
I come back out after hours and install it for $100.
I've always been one who considers right and wrong. I not only let the customer know I
wouldn't do it, but I let my boss know, so they could either address it with the customer
himself or just chalk it up and leave it alone knowing that there are people out there like
that who are always going to try to get the cheapest deal.
It's funny because that person knows it's wrong to ask me to do the side work. If he
didn't, do you think he'd call my boss up and ask him if it was okay for me to come
back out after hours and install the part he found online for cheaper? Probably not.
Entering a world of doing side work on your own while you save enough to start your own
business, cuts your own throat in a way. It's like tradesmen who knowingly buy stolen tools
to use on their job site instead of going to the store or going online and paying legitimate
prices for legitimate tools. If you do this then, then don't get mad when you start your
own company someday and find lowballers are undercutting your prices now that you have
more expenses than they do. Contractors have way more expenses than technicians
who wait until they get off work to come back and do a job the customer didn't want to pay
for when they were on the clock. Really, doing side work, whether legitimately, or not, a
person doing this kind of side work has the same risks as a real contractor...Not getting
paid, fire, injury, lawsuit, warranty, etc. Contractors have so many bills. We have to
carry general liability insurance. My company has a 1,000,000 policy we have to pay for
each month. Before I even started as a licensed contractor, I had to write the state license
board a check for $15,000 for a bond. Even as a small to mid-size HVAC company, our monthly
bills, including paying everyone is in the tens of thousands of dollars. This is why
we charge the prices we do. Follow me for a second. A really experienced
contractor who sends their guys out into the field, on average, bills their service techs
out for less than 50% of the actual time they are on the clock. The rest is rent, payroll,
administrative costs, attorneys, drive time, stocking up the warehouse, paperwork, weekly
training sessions, running for parts, return visits that aren't even charged to the customer,
and so many other expenses. Consider the $30,000 service van you're driving
around in that's only going to last five years and maybe be worth $5000 when the company
goes to trade it in for your next van. It's shocking if you think about how much it costs
to roll a van to a service call or an installation. There are even business owners themselves
who don't understand that cost entirely. But getting back to it, I'm not saying doing
a little work for family and close friends isn't right, because no one is going to turn
down family. Everyone's got someone they know who can do the work; A buddy who's a mechanic,
an aunt who's a seamstress, an uncle who's a roofer. That's not a person running some
underground business. That's just common decency. I've gone over to my next-door neighbor's
house when I worked for someone else and replaced a bad capacitor on their AC. Was that wrong?
Some would say yes, but as a contractor myself, I would say no. There's always going to be
some line you shouldn't cross. But I will say this. If you're going to do
side work, don't use my tools, my parts, my equipment, my van, or my name and reputation.
Technically, if there's any legal requirement to be a 'contractor' in your area and you
don't meet those requirements, there's no legal requirement that a customer pay you
for your work...even if you've completed it to their satisfaction.
Even if you have a contract signed by both parties, you'll lose any legal attempt to
collect. Take the customer to court? The court will simply deny your claim as the courts
can't rule on an illegal act. And operating without any of the required licenses, insurance,
bonds, registration, etc. is an illegal act. That's the line your crossing when you decide
to take on that side work. I know I'm not going to change the minds of
the masses of side-jobbers out there who think lowballing their bosses for one reason or
another is okay. I'm all for healthy competition and real contractors keeping each other in
check with pricing. Good contractors don't suffer from a lack
of work because of all the people doing side work. It's simply the principle. Contractors
have worked for years building up their business and finding employable technicians who can
be insured and carry out their duties in a safe, precise, and professional manner.
All I'm saying is think about what you're doing before you take on that side job. Is
it worth your job if you get caught and get fired? Probably not. Is it worth doing a little
bit of side work while you're waiting for your license to process with the state, or
while you're saving up money top even get started? Probably not.
Let me know what you think about his topic in the comments below. Do you think it's harmless,
or are you not willing to cross that line to keep things legit?
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