DISCLAIMER: This post provides a general overview of legal issues that might arise for businesses using the services of virtual assistants. It is not legal advice, and I am not your attorney. If you require information or advice applied to your unique situation, please make an appointment to discuss it with an experienced attorney of your choosing.
Many businesses turn to virtual assistants to help with a variety of tasks, from one-time campaigns to ongoing administrative assistance. VAs can be a great way to save time and money, but it’s important to do your due diligence before hiring one.
What Is Due Diligence?
Due diligence is thorough research that helps you avoid counterproductive impulses, like hiring because you had a fun conversation during the initial sales call or because you’ve heard of the service the VA works for.
Why You Need to Do Your Due Diligence
It’s important you not only understand what a VA can and can’t do for your business, but it’s also crucial to know that the VA service is a true independent business, so you don’t unintentionally hire an employee you believe is an independent contractor. Worker misclassification errors can cost tens or hundreds of thousands of dollars in unpaid payroll taxes and overtime wages, uninsured claims, penalties, and interest.
In addition to financial assets, due diligence can help you protect:
- Client details
- Confidential information
- Intellectual property
- Your reputation
- Your relationships with other owners of the business
Tips for Selecting a VA Who Helps More Than Hurts
Here are some tips for doing your due diligence before hiring a VA:
- Get clear about your needs and expectations. Be specific about the tasks you need help with and the skills required to complete them to your standards.
- Read the VA service’s website. This is a good place to start your research. Look for information about the VA’s experience, skills, and rates. You should also read the VA’s terms of service and privacy policy.
- Read reviews of the VA service. Don’t just rely on the testimonials on the VA’s website. Search for reviews from other businesses that have used the VA service. You can find reviews online or by asking your network of contacts.
- Beware of one-sided contracts. Before you sign any contracts, be sure to read them carefully. Look for one-sided clauses that could put you at a disadvantage. For example, some contracts may require you to pay for services even if the VA doesn’t meet your expectations. Others try to shift their risks and responsibilities to you through waivers, hold harmless and indemnification clauses, arbitration or other dispute resolution processes, choice of law provisions, confidentiality and non-disclosure agreements, and non-competition clauses.
- Ask questions. Once you’ve narrowed down your choices, it’s time to start asking questions. Be sure to ask about the VA’s experience, skills, and availability. You should also ask about the VA’s rates and payment terms. Other questions to ask might include:
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- Are the VAs employees or independent contractors of the service?
- Where are they located?
- Is the service insured for cybersecurity breaches and other liabilities?
- What types of precautions do they take to protect client information?
A Note About Training Your VA
While researching this post, we discovered several sources that recommend training your VA. We do not recommend this because it blurs the lines between independent contractors and employees. The VA is supposed to be an expert in providing the services you have contracted to pay for, and you are probably paying a premium for that expertise. You should not need to do more than discuss your preferences and show your VA where to find information needed to perform the services. The work will usually be performed using the VA’s equipment and supplies, on the VA’s chosen schedule, and with minimal oversight by you. If you control the VA’s work and schedule too much or require use of your equipment, supplies, and premises, you have probably hired a remote employee. There is nothing wrong with that, but you will need to:
- Set up payroll for the VA
- Withhold payroll taxes
- (In New York) Secure workers compensation, disability, and Paid Family Leave insurance
- Track and pay accrued Safe and Sick Leave benefits
You might also have to pay overtime wages and provide access to retirement benefits, among other things.
Need more guidance?
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