Cohousing-L Mailing List: Re: work-or-pay system - legalities? general advice?

[Rick Gravrok (rick.gravrok]

Hello fellow cohousers,

    Here's an idea for a financial carrot-like approach to encourage people
to help with chores (or to compensate if they aren't doing chores). As an
example, here's how this works for my wedding photography business: I
increased my photography fee by $100.00 and then I'd tell the Bride and
Groom that if and when they, and the wedding party, are all on time for the
photographs, they get $100.00 off of their bill. Only once was I not able to
give that $100.00 refund. The Bride and Groom liked this approach because it
worked and because it took the responsibility off of them to get everyone
there on time. It also avoided any frustations on my part because it kept
people from being late, and no one had negative feelings towards me which
would have happened if I were to impose a penalty fee for times when people
were late for photos.

    How about if we applied this same carrot/positive consequence approach
to encourage members to do their fair share of chores? What if everyone
started off with an additional "Chore-Charge" (say a certain additional
percentage of the monthly association fee) and then when the community
agreed by consensus that individuals were doing their fair share, then that
additional fee would be removed for them. And then on a yearly basis,
perhaps at the Annual Membership Meeting, the fee would automatically go
back on for everyone, except for those members who the community then agreed
were doing their fair share. Wouldn't this be better than the concept of
using a stick/negative consequence/penalty fee approach? Also, with this
method, no one has to be the 'accountability cop', the bad-guy who might
justifiably want to point out someone who they think is not doing their fair
share of work.

    Is anyone doing something like this already? If so, let us know how it's
working please.

    And in those cases where people are choosing to put more of their time
into making money, or traveling, raising children or whatever, this would
give them a way to support the community and be fair to those members who do
the work. It could also reduce the guilt (or shame) that some people may
feel when they know they're not doing their share of work whether it's by
choice or because of health or age-related issues. This could also help to
keep senior members in the community, where otherwise they might leave
because they don't want to be a burden on everyone else when they can't do
as much to help anymore.

    For healthy, happy and smooth functioning co-communities!

Rick Gravrok

On Thu, Apr 14, 2011 at 7:15 PM, Kay Argyle <Kay.Argyle [at] utah.edu> wrote:

>
> I've read everything I could find in the archives about other communities'
> work/participation systems, especially work-or-pay; that is, a system in
> which residents are expected either to do a certain amount of community
> work
> or pay for hours not worked, or in which people who work get a rebate on
> their HOA fee.
>
> It is certainly possible to have an arrangement totally off the books
> (making sure the community's accountant and insurance agent are unaware or
> at least have plausible deniability). On the other hand, it would be nice
> if
> the work system can operate aboveboard and openly yet without any undue
> burden of paperwork or cost. What are the legal, tax, or insurance
> implications of a work-or-pay system?
>
> Very generally, for any community who has tried a work-or-pay system,
> - There are potentially a lot of different ways to set up a work-or-pay
> system. What has worked well and what hasn't?
> - What adjustments has the community made to its system?
> - What adjustments would you personally make if you could persuade everyone
> else?
> - Have there been pitfalls or unexpected bonuses?
> - Has the community tried and abandoned a work-or-pay system, and why? Or
> after serious consideration, decided against it in the first place?
> - What advice would you offer a community considering a work-or-pay system?
> - anything else you are willing to share!
>
> Thanks,
> Kay
> Wasatch Commons
> Salt Lake City
>
>
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