How to Pay a Day Laborer

Co-authored by Gina D'Amore

Last Updated: September 23, 2022 References

Day laborers work for a business or individual for one day at a time and are usually paid by the hour or day. Many day laborers are undocumented immigrants who cannot get a full time work, unemployed individuals looking to make money however they can, or students or professionals who use employment agencies to find temporary work. Though the issue of paying a day laborer for his or her work may seem simple, there are several important things to consider.

Part 1

Part 1 of 2:

Hiring Day Laborers

1
Determine how many laborers you need. Depending on the work you need done and how quickly you want it to be finished, you may find yourself needing more than one laborer. This is important to consider because it may influence the pay rate you are willing to offer.
- If your project requires lots of heavy lifting and/or moving large items, hire at least two workers. This will make the work go faster and will prevent a single laborer from becoming exhausted.
- Try to figure out what your total cost will be for hiring one versus several day laborers for your project. You will have to estimate the time required to complete the job, but this will help you decide how to proceed.
2
Check labor laws for minimum pay. Even though day laborers are usually not members of employee organizations or unions, you are still bound by federal, state, and local laws to offer them fair pay and working conditions. Check the Department of Labor website^{[1]
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US Department of Labor
Federal department responsible for promoting the wellbeing of workers
Go to source} (for the U.S.) in order to make sure your pay rate meets or exceeds the national minimum wage. This is important so you can pay a fair and reasonable price for the service being done.
- Keep in mind that you must pay a day laborer for the work he does, whether you approved of it or not. Failing to do so is a violation of federal labor laws.
- If training or extensive travel is required for the day laborer to complete the job, legally you must compensate the worker for his or her time.
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3
Settle on a rate of pay. Before you hire a day laborer, have a specific rate of pay in mind. This can be an hourly rate, a daily rate, or a per-project flat fee. Before making a decision to work for you, many laborers will want to know what the job entails and how much they will be paid.
- Factor in the amount of time you expect the job to take. In order to avoid getting stuck with a slow or inefficient worker, you might want to consider offering a flat fee for the job you need done.
- Consider the work being done. Extremely difficult manual labor probably warrants a higher rate of pay than some easier tasks, especially since it may be harder to find a willing and able laborer who can do the job right.
- Make sure the person you hire understands and agrees to the rate so there are no disagreements later about pay.
- You are legally required to pay overtime for work exceeding 40 hours within one seven-day work week; this is typically the original agreed upon rate plus 50 percent.^{[2]
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  Workplace Fairness
  Nonprofit organization focused on public education and advocacy on issues related to employment and labor law
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4
Use a temp agency. Many employment agencies hire temporary workers who they can match with day labor projects. These are good options if you would rather not handle the hiring and payment tasks yourself. Hiring through an agency means you will pay the agency instead of paying the laborer directly.^{[3]
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- You can usually pay labor agencies by check or credit card, though some may require that you set up an account first in case you need additional help in the future.
- Check the labor agency's fees before deciding to hire through them. You may find that the extra expense of using an agency is not worth the convenience.
5
Look for community day laborer programs. In many cities, such as Los Angeles, day laborer programs are popping up in an effort to coordinate the matching of day laborers to employers. These programs also seek to make the process legal and safe for everyone involved.^{[4]
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Research source} These operate much like labor agencies, but are usually government-affiliated and may or may not include fees.
- These city or municipal programs may have requirements for payment methods, schedules, and even rates. Check with program officials to learn about their policies before going this route.
- One benefit to employers in using a program like this one is that day laborers will be part of a database which can be used to hold them accountable for any misconduct (such as theft or property damage).

Part 2

Part 2 of 2:

Taking Care of Business

1
Communicate with employees. Clearly explain to your day laborer(s) what you need done and how you want it done. As the work progresses, check in on your employees and make sure they are doing the job properly. Take this opportunity to also ask the laborers whether they have any questions about the work. By maintaining frequent communication, you reduce the chance that either party will become dissatisfied with the situation.
- Be clear upfront about how much work you expect your laborer(s) to complete in a given day, including start and stop times.
- Don't forget to schedule breaks for your worker(s) and tell them when they can stop working to eat lunch, rest, or get something to drink. This will keep them from having to guess as to your expectations.
2
Be flexible. Recognize that sometimes a job turns out to be more difficult or time consuming than originally expected. If this turns out to be the case for your project, consider whether a pay raise or extended period of employment is warranted. Your laborers will be more likely to want to work for you again if you act fairly and reasonably.
- In some cases, you may realize part way through a project that you need more laborers to complete it effectively. If this happens, you should not lower the pay of the original employee(s); the pay rate you promise upfront is what you should stick to.
- If harsh weather conditions slow the progress of an outdoor project, consider delaying things until a later date, when your laborer can work more effectively. In such a situation, consider paying your laborer for the work he has already done, especially if the break will exceed 1 day.
3
Know your laborers' rights. You should be aware of and comply with the various legal rights that protect day laborers. If you have questions about what day laborers are legally entitled to, check the U.S. Department of Labor website.^{[5]
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US Department of Labor
Federal department responsible for promoting the wellbeing of workers
Go to source} Laborers' rights include (but are not limited to) the following:^{[6]
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Workplace Fairness
Nonprofit organization focused on public education and advocacy on issues related to employment and labor law
Go to source}
- Right to organize.
- Right to be paid a fair wage.
- Right to be free from discrimination.
- Right to safe working conditions.
- Right to remain silent regarding immigration status.
4
Pay in cash. At the end of the day (or project, if you choose to pay that way), pay your day laborer in cash. This saves the worker from the hassle of trying to cash a check if he doesn't have a bank account. This is just a general courtesy that will make your laborer's life a bit easier.
- Remember that you have to pay a laborer for his work, even if the work is not done exactly the way you wanted.
- If you hired the laborer through an agency or work program, you will have to pay the agency (probably by check or credit card) and not the worker directly. Tips, on the other hand, should be paid directly to the laborer in cash.
5
Keep written records. You should have a written record for every day laborer you hire that details how much was paid, on what date, for what services, and to whom. You may need this for your own business or personal tax records, and it is a good way to keep track of your finances. This is especially important if you hire day laborers on a regular basis.
- Maintain a database of day laborers and their contact information. It might be a good idea to include personal notes describing your overall satisfaction with each particular worker. This will help you avoid hiring someone who doesn't do good work.
- Give a 'receipt' to each laborer you pay so that he also has a record of his work and payment. This is the best way to keep within the law and make everything by the book.
6
Fill out an I-9 form. This is a U.S. federal employment form that needs to be filled out for each employee who works for you (even a day laborer). While you do not have to submit this form to anyone, it can be requested at any time by the U.S. government and will protect you in the event you are audited by government officials for any reason.^{[7]
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US Citizenship and Immigration Services
U.S. government agency in charge of the naturalization and immigration systems
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- You can obtain I-9 forms from the U.S. Citizenship and Immigration office. Visit their website at [[1]].
- The I-9 form includes sections to be filled out by both you and your laborer. If you wish to fill out the entire form yourself, you will need to get all the appropriate information from your day laborer.

Community Q&A

Question

How do I calculate payment for a casual laborer ?

Community Answer

It depends on the labor being done. The laborer you hire will likely quote you his/her rate. If not, you might call companies in your area that use casual laborers, ask what they pay for the type of work you need done, and use that as a guideline.
Question

Do I pay by the day or by the hour?

Community Answer

I like paying by the day, as this keeps them from dragging out the day to get more money. If they know the pay is set for the task, they normally work harder.
Question

What would be a fair hourly wage to pay a laborer for light-duty work around the house?

Community Answer

Start with $15. You can include extra on holidays or at the end of the month.

Warnings

Be aware of federal laws on social security taxes for employers by visiting [[2]].

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It is unlawful to knowingly hire undocumented illegal aliens for day labor work.

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Even illegal workers are protected to a certain degree under federal law an must be compensated for work performed.

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Check your local and state laws to see if you are prohibited from hiring day laborers in your community. Your city's municipal codes and ordinances can be found on its official website.

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