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An Interview with The Boss: See what Aaron Hageman has to say about worker regulation change.

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In our industry, change is the only thing that is common. After 20 years of being in business, we’ve seen hundreds of worker regulations shift and we’ve also seen cases where not keeping up with that adjustment can mean big trouble for certain individuals. For Aaron Hageman, CEO of Deliver Driver’s, Inc., he has seen almost everything this industry can dish out. We asked him 3 questions about worker regulations and issues facing HR departments; here’s what he has to say.

Q) “Which is a bigger issue facing companies and their HR departments: The ability to balance their daily tasks with the added responsibility of learning new worker regulations OR staying current with new regulations?”

A) “Both issues are relevant given the attention that independent contractors are getting due to the gig-economy, as well as the fact that everyone is interested in the last mile right now. Managing the workload associated with regulations is, in my opinion, the more difficult of the two tasks. In other words, keeping up with the rules whilst implementing the changes across your workforce is extremely difficult. It involves training your internal HR team (assuming you have a full-time internal human resources team of course), communicating the changes to the existing workforce and updating everything for them, as well as properly and compliantly executing all of the associated work moving forward. There is a large amount of government attention, including lawsuits, devoted to the issue. Additionally, changes in labor laws are changing rapidly. It is not merely one set of regulations that define independent contractors versus employers, but one hundred different rules that vary across our country! This makes it quite difficult to stay up-to-date.”

 Q) “What is your forecast as to what NEW issues HR departments will face in 2017, if any?”

A) “2017 will see an expanded auditing task force as well as more inquiries into the nature of 1099-based working relationships. Don’t let the political climate or the economy fool you; 1099 compliance is now more important than ever! One thought we often discuss here at DDI is the fact that the workforce out there is more educated than ever. Gig-economy workers are acutely aware of the dynamics and freedoms that come with being a self-employed contractor. If you fail to run your business relationships with these workers properly, it is not the government that will be pressing the issue of 1099 versus W2 status, but the workers themselves!”

 Q) “What is one tip or piece of advice that relates to the topic in the above question?”

A) “Proper 1099-related human resources management requires expertise; it’s a full-time effort. I encourage everyone to do their research to see which is a better option: keeping it in house or to outsource it.

 

Conclusion

2017 will bring with it more stringent regulations and related enforcement due to the gig-economy and many different constantly-changing regulations regarding 1099 employment. To best manage compliance and avoid HR issues, hiring experts in the field (such as DDI) is a solid investment.

 

*We’d love to discuss solutions we can provide. If you feel that we could be a good fit for you, let’s chat! Give us a call at 888.334.9675 (ext: 3) or simply go to: https://ddiwork.com/contact/ and one of our experts will promptly reach out to you.

A DDI Perspective: Trump’s Presidency & What It Means For 1099 Worker Regulation

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DDI works with some of the most prestigious law firms in the country. We recently attended a seminar hosted by one such firm, in which the presenter, a member of the Trump Transition Team, spoke at length about some of the impacts we’d likely see his administration have on business. But what does Trump’s presidency mean for 1099 worker regulation?

While much of the presentation was centered around possible appointments and economic philosophy, there was a portion dedicated to the on-demand “gig” economy and specifically the administration-to-be’s general view of Independent Contractors.

As you might expect, it is anticipated that the new honchos in charge of various business and labor agencies will be friendlier toward the free exchange of employees and employers, workers and businesses. President Obama has taken an adversarial approach toward business’ use of Independent Contractors:

 

 

Don’t expect President Trump to snap his fingers and eliminate all headaches and red tape associated with the world of 1099 labor, but we can reasonably expect a much softer approach toward worker classification from the Federal Government – namely, the USDOL and IRS. While this is good news for most of us, it doesn’t eliminate worker classification risks. Most online journals, which discuss 1099 issues as well as our own attorneys have warned that a decrease in Federal Regulation almost always gives birth to an increase in State-led initiatives.

 

Our legal team does not expect an overall decrease in worker classification investigations, but that isn’t to say this isn’t good news. In our experience working through an audit with the State is a much more favorable scenario for business owners than dealing with the Federal Government, which restricts a business’s ability to make an objective plea of compliance. In simple terms, the USDOL in reality, doesn’t allow a business a friendly environment to present a satisfactory defense.  Conversely, the States have a relatively fair system, allowing companies, which understand that system, to make their case.

 

If you have questions or would like to better understand how a State audit works compared to that of the USDOL, please contact us here: https://ddiwork.com/contact/

 

Issues That Face HR Directors in 2017 & What To Do About It

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Staying Current with Regulations While Managing Day-to-Day Tasks.

It’s no mystery that companies continue to work hard at staying current with labor laws and regulations. Whether it be new federal or state laws, many employers are left in the dark when it comes to these issues. In our 20+ years of experience, we have discovered that over 150 labor laws change within a single year. This daunting task continually faces all human resources directors, adding to their already stifling work load.

But how can HR professionals and companies stay up to date with the ever-changing laws while balancing the workload of day-today tasks? It seems almost impossible without increasing the size of your team. However, there are simple options that could potentially lighten the workload to increase efficiencies.

 

What to do about it…Here’s an action plan.

Join Groups

Being a part of certain groups holds huge benefits when it comes to compliance and HR related topics. This gives access to needed resources otherwise not available to people outside of the group. Other than compliance, groups have the ability to cover a broad range of topics from benefits, to labor relations, to both federal and state employment laws. Fair warning, most groups have a fee associated with them so make sure the resource is worth the money.

*We offer a FREE resource to all people who are willing to be the best. Join our Facebook group by clicking here: http://bit.ly/DDI_FacebookGroup

Follow Bulletins and Subscriptions

Some people digest information in different ways and going to group meetings may not be their “cup of tea.” There are bulletins and newsletters available which include not only current legal decisions but legislative news and changes. This is an easy solution many people take advantage of. With so many options available, make sure to do the research to find which ones best suit your needs.

Outsource It

The balance in daily task & research of new regulations while ensuring that they are being enforced tends to still be one of the toughest issues to be dealt with. By outsourcing the job of compliance and red tape to a third-party professional organization, you’ve now grown your team with experts who specialize in making sure all rules and laws are being followed; not to mention as current as they can be. In certain instances, we have seen efficiencies improve by 200% with some of our clients when employing our firm. When outsourcing, you remove the headache of all the legal jargon that comes along with compliance issues and free up time for your HR department to do what they do best.

 

*We’d love to discuss solutions we can provide. If you feel that we could be a good fit for you, let’s chat! Go to: https://ddiwork.com/contact/ and one of our experts will promptly reach out to you.

3 Way Delivery Drivers Can Make More Tips

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Making money in your spare time is one of the main reasons why our partnered drivers enjoy working with us. The freedom to create your own schedule and select the areas you want to work allows you to be your own boss. But what if you were able to make a “little bit” more money on each delivery? What if those deliveries started to stack up and every “little bit” turned into a nice payday down the road? Some may think it’s far fetched. In reality, this happens to many of our partnered drivers on a daily basis.

Since Christmas shopping burned a hole in your pocket book a new year in sight, putting more money in your wallet is the right way to welcome in 2017. Here are 3 simple things every driver should remember for their upcoming deliveries.

Be on Time

You may say to yourself, “Well Duh.” But as easy and elementary as this is, it’s unbelievable how many times some people forget this simple rule. We understand that there are things that are out of your control, and that is ok, it happens. But being tardy because of poor planning or lack of professionalism is unacceptable. Put yourself in a position to WIN by doing the simple things. Plan ahead, check the traffic, and get to your destination on time

Put in the Extra Effort

Now this may not be your job, but it sure does make the customer happy. Put yourself in the customer’s shoes for one second. How many times have you ordered a pizza for delivery, but right when you hung up the phone, you remembered that you forgot to ask for Parmesan cheese, paper plates, red peppers, ranch, and napkins? We’re going to assume more than once.

A smart idea would be to think of these things for the customer in case they forgot to request it themselves. Ask the restaurant to include additional sauces, utensils, napkins, or toppings…whatever it takes to make the meal that much better. Upon delivery, notify the client know that you were able to have the restaurant add these extras with their meal just in case. Even if they didn’t ask for it, it’s better to have those options and not use them than to not have the options and want them.

Be Courteous

Even though your face-to-face transaction with the client is brief, people will remember the good experience they have with you. However, they will remember a bad experience even more. It’s good practice to always be polite to the customer and to express common courtesies. The simple things like “please,” and “thank you” go a long way in the service industry and can mean the difference in a satisfied customer to a dissatisfied customer. It doesn’t cost you anything to be nice to the customer or even shoot them a smile upon delivery of their meal. It’s these small gestures that could end up increasing the amount of your tip from 15% to 20%.

 

 

If you’re interested in earning more money for the new year and want to become a partner with DDI, please contact: 888-334-9675 ext. 0 or you can email us at operations@ddiwork.com For more information or online registration, simply go to: https://ddiwork.com/drivers/sign-up/

3 Ways Red Tape Hinders Your Company’s Growth

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“It would be a lot harder to start my business today; there is more Red Tape than ever.”

-Aaron Hageman, Owner of Delivery Drivers, Inc.

 

What is Red Tape? By definition*, Red Tape is excessive formality and routine required before official action can be taken.

In business terms, Red Tape has an extremely negative connotation in regards to rules set on companies by the government which are considered by most to be redundant or bureaucratic and hinder (or in some cases will prevent) the company’s growth. With so many rules and regulations to keep up with, small businesses and independent contractors are finding themselves in difficult situations that include everything from time wasted to rising costs. These setbacks can prove to be huge when every dollar is necessary for the future growth of the business. Next to taxes, attaining working capital and hiring, Red Tape is one of many major challenges that small businesses face today. There are 3 main issues with the current regulations that most businesses agree on:

 

  1. Understanding the requirements of the regulation and ensuring the company is compliant.

Having to utilize your time to understand these new regulations rather than focusing on ways to grow the business slows the flow of money into the business. On average, most companies spend 200 hours per year to comply with government regulations, which averages out to about 16 hours each month. Imagine what could be accomplished in that amount of time.

  1. The way companies learn about new rules in the industry.

Most companies find out about these regulations from consultants or advisors. Sometimes these consultants or advisors are internal to the organization but in some cases, they are external. Many companies utilize trade associations for their information. Both are great sources to make sure you’re in compliance with the “latest and greatest.” However, both options cost money. It’s the responsibility of the company to stay up to date with the rules so spending that extra money is essential in staying compliant.

  1. The cost of the regulations themselves.

Almost all regulations come with higher taxes and fees which are absorbed by the company. In 2014, the economic wide cost of federal regulations reached a staggering $1.88 trillion dollars**. When divided among the 28 million small businesses in the U.S, a little more than $67,000 was taken from the growth of each business.

 

The landscape of today’s regulations makes it more difficult than ever to start a business or operate as an independent contractor. With all the challenges facing new business owners, Red Tape is the last thing you’d want to add to your plate.

We understand everything Red Tape entails and that’s why our programs were developed to provide support to companies and independent contractors who can now focus their time on growing their business. Our ability to stay on the forefront of regulation change has Delivery Drivers, Inc. recognized as one of the top 3rd party full-time human resources companies in the United States for the past 20 years. We pride ourselves on our innate knowledge these nuances and look forward to helping many more businesses in the future.

 

 

*Ref: Dictionary.com

**Ref: freebeacon.com/issues/report-cost-of-federal-regulation-reached-1-88-trillion-in-2014/

Wage and Hour

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The battlefield of Independent Contractor challenges continues to grow. As more and more States sign a memo-of-understanding with the Federal Government, the audits are growing:
2015:
102,000 workers reclassified
$74,000,000 in back wages assessed
You can do this right, you just have to be proactive and run a compliant model (according to your State’s rules). Call DDI to discuss if you’re a client or are interested in becoming one…

CLICK HERE for the full article.

Walmart partners with Uber and Lyft for grocery deliveries

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In a fierce attempt to step up competition with Amazon’s burgeoning grocery-delivery service, Walmart this week announced they will be testing grocery-delivery services with both Uber and Lyft.

The retailer will start trying out Uber in Phoenix and Lyft in Denver within the next two weeks, and hopes to establish some kind of permanent system for expanding their business and marketing reach.

Domino’s delivery driver saves man’s life

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Domino’s employees at the Salem, Oregon operation ended up saving a regular customer’s life last week. Kirk Alexander, a middle-aged man who orders from the Domino’s Salem location three to four times a week, hadn’t phoned the operators in over 11 days.

Sarah Fuller, the General Manager, knew there was something wrong. She sent deliverer Tracey Hamblen to Alexander’s residence.

Hamblen knew something was off when she saw lights and TV, but no answer at the door. After walking around the property, Alexander was discovered face-down in the living.

Paramedics accredit his survival to the fast acting Domino’s team who called for help just in the nick of time.

New York’s Vinnie’s Pizzeria Unveils Pizza Box Made Out of Pizza

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Just when you thought Brooklyn couldn’t be any more obsessed with pizza… think again. Last week, Vinnie’s Pizzeria unveiled a pizza box made entirely out of pizza. Inside the pizza box is, you guessed it, also a pizza. Officially called the “pizza box pizza,” the Pizzeria claims their ingenious packaging invention will reduce leftover waste, and leave consumers happier, and fuller, than ever.

http://www.ajc.com/news/news/national/new-york-pizza-shop-unveils-pizza-delivery-box-mad/nrFJq/