Clean fee, also called a cleaning charge, is a fee levied by businesses or landlords for cleaning services incurred by a tenant or customer. It can be calculated as a set fee, as a percentage of the total bill or as a combination of the two.
Clean fees are not new — many landlords have included them in their rental agreements for years — but in recent times, there has been an evolution of the term “cleaning fee.” As the gig economy has grown, businesses are increasingly relying on contractors for cleaning services, charging customers for the cost of the service instead of paying it out of their own pocket.
Cleaning fees can have far-reaching implications for businesses. Knowing the legal aspects of clean fee policies — and the risks associated with them — is essential for any business looking to incorporate cleaning charges into their operations.
Legal Implications of Cleaning Fees
To ensure your cleaning fee policy meets legal requirements, it’s important to understand the fundamentals of labor law in your state or region. In many places, a cleaning fee must be specified in the contract or lease before it can be charged. Customers must also be informed of the fee before they use the service, and the fee should always be proportional to the value of services provided.
In addition, businesses may be legally obligated to withhold state taxes on the cleaning fee, depending on the contractor’s circumstances and jurisdiction. Businesses should also keep in mind that local regulations may apply.
The Benefits and Risks of Cleaning Fees
From a business perspective, clean fees can be beneficial because they allow businesses to recoup the cost of cleaning services without impacting their bottom line. They can also be used to incentivize customers to keep the premises clean, as customers who leave behind a mess may be charged a cleaning fee.
However, clean fees can also be risky if not managed correctly. If business owners are charging customers directly, there is a risk of non-payment or disputes over the size of the fee. Furthermore, businesses that are not compliant with applicable labor law requirements — such as those related to the contractor’s status — risk potential liability for underpayment of wages.
Conclusion
Cleaning fees are a common practice among businesses that rely on contractors for cleaning services, and can provide a cost-saving option for businesses. However, it’s important to understand the legal requirements associated with clean fees and the potential risks of non-compliance. By understanding the legal implications and how to properly manage clean fees, businesses can reap the benefits while avoiding the potential pitfalls.