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What is Dratis?
Dratis is a contract staffing company.
Developed to be an alternative to recruiting agencies, our way of doing business differs in the following ways:
- We offer a low markup of 21% that is transparent to both the contractor and the company.
- With Dratis, contractors and companies negotiate terms directly rather than through the agency.
- Our fee structure for converting contractors to direct is straightforward and highly competitive.
- We don't include non-compete clauses or blackout periods in our contract agreements.
- Our platform streamlines the process of matching contractors with the right position, saving everyone time, effort, and money.
Is Dratis a Freelancer site?
No, freelancers work on a 1099 basis, whereas contractors who work through Dratis are hired on a W2 basis.
Does Dratis perform background checks?
Dratis outsources background checks and drug tests when requested, as the final step in the hiring process. The cost is invoiced to the client but rebated back after the contractor has either logged 480 hours of work or has been converted to direct hire status..
Level 1 background checks include:
- Social Security number trace
- Nationwide criminal database search
- Sex offender registry search
5-Panel drug tests screen for: Amphetamines, Phencyclidine, Cocaine, Opiates, and Marijuana
These are the baseline tests we offer. More extensive background checks and stricture drug panels can be conducted for additional cost. In addition, a 4-Panel drug screening can be offered for clients operating in states with legalized marijuana laws.
How much money will it cost to convert our existing 1099 contractor to W2?
There is no fee associated with doing this. To do the conversion simply adjust the hourly rate such that the contractor ends up taking home the same amount of money after factoring in the Dratis markup and adjustments to payroll taxes.
Give us a call at (603) 945-5515 or email the details to firstname.lastname@example.org and we can provide you the exact bill rate.
How is time reporting handled?
Contractors fill out a weekly timesheet and provide it to their onsite manager for approval. Once approved, timesheets are emailed to email@example.com from a designated client email address.
What is the invoicing schedule?
Dratis invoices clients on a weekly basis. Payment is due upon receipt unless a different arrangement is agreed upon.
We have a contractor we currently work with. Can we bring them in through Dratis?
Yes, provided the contractor is not currently under a non-compete with another staffing agency.
Does Dratis insure its contractors?
Yes. E,E & O insurance coverage is provided. Also, all Dratis contractors are covered by workers compensation insurance.
Does Dratis work with international contractors?
No, at this time Dratis only works with contractors who are legally authorized to work in the United States.
Does Dratis recruit contractors?
No, Dratis does not actively recruit. Instead we provide a web platform to connect contractors with companies. The practice of staffing agencies recruiting candidates presents a conflict of interest in our opinion. Contract recruiting creates an incentive for staffing firms to filter candidates based on profit rather than on the needs of their client.
For example, if a client company is willing to pay up to a maximum of $100/hr for a contractor, the staffing firm, with a 40% markup, will only recruit candidates who are willing to work for $72/hr or less. If the candidate wants more money, depending on the amount, the staffing agency either requests more from the client or simply drops the candidate. Neither outcome is in the best interest of the client.
Dratis decouples profit and candidate selection. There is no conflict of interest with Dratis because our markup is transparent and we aren't involved in hourly rate negotiations.
Recruiting firms charge much higher markups than Dratis. How are you able to charge such a low rate?
At Dratis we do not employ recruiters. This savings puts Dratis at an advantage over other staffing agencies and allows us to charge a much lower markup since our expenses are lower.
Does Dratis work with recruiters?
Dratis, at this time, does not work with external recruiters.
What legal agreements are required to hire contractors through Dratis?
Dratis agreements come in two parts: A Master Staffing Agreement and Addendum agreements.
For Client Companies:
- Master Staffing Agreement: This is the parent agreement that details the business relationship between Dratis and the client company and outlines the responsibilities of both parties. This agreement must be in place before a company can make an offer to a candidate.
- Addendum Agreements: These are contract-specific agreements, governed by the Master Staffing Agreement, and outline the details of contracts such as hourly rate, length of contract, etc. These agreements are drawn up by Dratis with the contract details and provided to both the client company and the contractor for signature.
- Employment Agreement: This agreement details the business relationship between Dratis and the contractor and specifies the obligations of both parties. This agreement is presented to the contractor for signature when a contract offer has been accepted. In addition, the contractor is presented with an Employee Handbook which outlines Code of Conduct, Ethics requirements, and other items related to the candidate's employment with Dratis.
Can Dratis legal agreements be modified?
Yes, client companies may request modification to any agreement by emailing firstname.lastname@example.org or by calling (603) 945-5515.
What is the purpose of the Master Staffing Agreement and why is it required?
Employment law is complex with many requirements and restrictions imposed at both the federal and state level. The major components of the Master Staffing Agreement are as follows:
Terms of Agreement Details the terms of the agreement and provides a framework for termination.
We have multiple positions to fill. Do we need a separate Master Staffing Agreement for each position?
No, the Master Staffing Agreement is the primary agreement between Dratis and the client company. The agreement is exercised once and stays in effect until one of the parties decides to terminate.
We posted a job description and have several candidate profiles that interest us. Why cant we access their profiles?
We anonymize contractor profiles to protect their privacy. Once the Master Staffing Agreement is in place client companies will have full access to the profiles of candidates who have applied for a position.
What is the process for hiring a contractor from the site.
Once the client and the candidate agree to terms, the client provides the following details to Dratis:
1) Contractor name
3) Length of contract
4) Start date
5) Location where work is to be performed
6) Hourly rate to be paid to the contractor
7 Any applicable cap on hours (i.e. 40 hours per week, etc)
8) Any requested background checks and drug testing to be performed.
Dratis will take this information and create two agreements, one for the client and one for the contractor. Once both agreements have been exercised Dratis will begin the onboarding process with the contractor.
Once the onboarding process has been completed the contractor can report for work on the designated start date.
Does Dratis offer medical benefits?
No, Dratis does not offer medical benefits at this time.
Does Dratis offer disability or life insurance?
No, Dratis does not offer disability or life insurance at this time.
Who can be referred to an active job posting?
Only candidates that do not have an active profile on the Dratis website or have had one in the last 24 months.
Does Dratis provide benefits or vacation to its contractors?
No, all Dratis contractor employees are temporary and paid hourly. As such they do not receive benefits or vacation.
Does Dratis provide paid sick leave?
Dratis provides paid sick leave for contractors residing or working in a state with a mandatory paid sick leave law on the books.
Presently, the District of Columbia and 11 states have statutes in place: AZ, CA, CT, MD, MA, NJ, NM, OR, RI, VT and WA
The rules for accruing sick leave are slightly different for each state. When a contract begins, in addition to the Employee Handbook, the contractor will be given a summary of worker rights for the applicable state as well as a breakdown of the applicable paid sick leave law.
The following are links to the Departments of Labor for the 11 states that provide for paid sick leave for W2 contractors:
- AZ : http://www.azica.gov
- CA : http://www.dir.ca.gov
- CT : https://www.ctdol.state.ct.us/
- DC : https://does.dc.gov/
- MD : https://www.dllr.state.md.us/
- MA : https://www.mass.gov/orgs/executive-office-of-labor-and-workforce-development
- NJ : https://www.nj.gov/labor/
- NM : https://www.dws.state.nm.us/en-us/
- OR : https://www.oregon.gov/boli/Pages/index.aspx
- RI : http://www.dlt.state.ri.us/
- VT : https://labor.vermont.gov/
- WA : https://www.lni.wa.gov/
Visit the Department of Labor for your state for the most up-to-date information.
What do you mean when you describe your markup as a "transparent" ?
One of the biggest differentiators between Dratis and the competition is that our markup fee is public knowledge, whereas the markups charged by typical staffing companies is a closely guarded secret.
By publishing our markup rate the playing field is leveled. Contractor and client are empowered to talk money and negotiate the hourly rate in an open and transparent way. This creates a win-win situation where clients save significant money and contractors, at the same time, can earn more than they would with a typical agency.
What is the biggest reason to use Dratis over a competing agency?
The typical agency markup is 40%, the Dratis markup is 21%. The cost savings is significant.
By way of example, let's say Company XYZ needs a contractor for 1 year and is willing to pay up to $100/hr.
A typical staffing agency with a 40% markup, would only recruit for candidates willing to work for $60/hr. Any candidates wanting more money would be passed over and not presented for consideration.
By contrast, if Company XYZ sourced their own candidate they could negotiate directly with that candidate rather than through the agency. The result is that the company has much tighter control over their labor cost and can tailor salary negotiations to the situation at hand. In a tight labor market Company XYZ could decide to offer more money to candidates to remain competitive. In cases where the labor pool is large they could reduce the hourly rate accordingly. In both cases, Company XYZ has a distinct advantage when working with Dratis over the competition.
The following shows a typical example contrasting Dratis with the competition.
By choosing Dratis, Company A saves $15/hr while at the same time the contractor earns an additional $9.70/hr. A total win-win.
Besides "saving money" are there any other reasons to use Dratis?
There are many reasons to work with Dratis. Saving money is often the number 1 reason but here are a few more:
Dratis does not charge any fee for converting contractors to direct
Dratis does not lock client companies into exclusive agreements. Dratis clients are free to make changes at any time.
The Dratis model enables employers to offer more money to candidates. In a tight labor market this can be the difference between attracting and hiring great talent and losing them to the competition.
The Dratis model yields contractors that are much more satisfied with their hourly rate than with competing staffing companies. Happier contractors will be more productive and less likely to job shop for other opportunities. Happy contractors will also recommend employers to fellow colleagues.
How much money will it cost to convert our existing 1099 contractor to W2?
There is no fee associated with doing this. All that is required is to adjust the hourly rate such that the contractor ends up taking home the same amount of money after factoring in the 21% markup and adjustments to payroll taxes paid by Dratis.