Episode 177: Staying Compliant with Staff In Your Pet Business – The Best Kept Resource!

Today I want to share with you the best-kept resource in staying compliant with staff in your pet business. The Pet Industry Coalition is an organization dedicated to educating and advocating for the regulation and compliance of the Pet Industry. To tell you all about it, I've brought on two of the four co-founders, Lauren Cora and Katie Pape. Lauren is the owner of Dogs Deserve It, a dog walking company based out of Chicago, IL. Dogs Deserve It recently celebrated 10 years of service and has over 55 employees. Similarly, Katie's business Windy City Paws, is located in Chicago and has been in business for 10 years now. Katie has over 75 employees. Biggest Take Away You Don't Want To Miss With the pet industry being a rather unregulated business, staying compliant with staff in your pet business can be difficult. Thus, the Pet Industry Coalition was developed. Through the coalition they work to ensure businesses are aware of the differences between independent contractors and employees, as well as, the consequences of misclassifying staff. Show Highlights The start of the Pet Industry Coalition [5:02] Mission of the coalition and who it's for [8:18] The difference between an employee and an independent contractor [9:20] What to expect as a member of the Pet Industry Coalition [17:02] The consequences of misclassifying staff [25:40] Links Join the Coalition Audit Case Study  Let's Connect! Did you enjoy the show? We would love it if you subscribed today and left us a 5-star review! Click this link – Bella In Your Business Click on the ‘Subscribe’ button below the artwork Go to the ‘Ratings and Reviews’ section Click on ‘Write a Review’' Are You New Here? Welcome, I am so glad you are here. If you are a dog walker, dog sitter, cat sitter, doggy daycare or kennel owner, then you found the right place. Jump Consulting is the one place on the internet to get all the resources you need for your pet care business. Can I give you some freebies to generate sales and increase revenues for your business? Grab your freebies below. Are you starting out? Been in business for less than two years? Get your startup resources here. Do you own an established pet care business and you want to take it to the next level.? Get Your builder resources here. Transcript: This is episode 177 of Bella in Your Business. Hi there, I'm Bella Vasta from Jump Consulting. You might know me from CBS, NBC, Fox, Huffington Post, Entrepreneur, or maybe you've seen me speak on stage or read my book, The Four Dogs That Every Business Owner Needs. In any case, get ready because you're about to get your hashtag Bella Butt Kickin' in this next episode of Bella in Your Business. So what do you say? Let's get ready and jump. Welcome to Bella in Your Business. My name is Bella Vasta with Jump Consulting, and today I've got the most dynamic team that you probably have never heard of. I didn’t, and I had to have them on the show because they do something that is near and dear to my heart. They co-founded the Pet Industry Coalition—Katie Pape and Lauren Coppa—who are here today to explain to us what the Pet Industry Coalition actually is and how it can help you. If you have staff, listen up because this is going to be an episode for you. Katie introduced herself as the owner of Windy City Paws, a local dog walking and pet sitting company in Chicago, Illinois. They’ve been in business for 10 years and have about 75 staff members—all employees. Lauren followed, sharing that she owns Dogs Deserve It, also in Chicago, celebrating their 10-year anniversary with 55 dog walkers employed throughout the Chicagoland area. Combined, their teams represent over 100 employees, making their shared experience powerful and relevant. The two met at a seminar Lauren hosted, aimed at educating other dog walking companies about the difference between having 1099 contractors versus employees. Katie attended and was impressed by Lauren’s professionalism. They began working together in a mastermind group with other local pet care professionals and eventually developed the idea for the Pet Industry Coalition. They now collaborate with two other Chicago-based owners, David Blakeman of Field Day’s Dog Walking and Dana DeBrovny of Chicago Pet Sitters. Katie explained that, at first, she was hesitant to collaborate with competitors, but she learned that there’s enough business for everyone and that collaboration leads to growth. By connecting with others, she found the support she didn’t realize she needed as a business owner. Lauren agreed, emphasizing that cooperation rather than competition has been key to their success. The Pet Industry Coalition began as a response to widespread confusion and misclassification of workers in the pet care industry. They wanted to educate and advocate for compliance with employment laws, particularly regarding independent contractors (ICs) versus employees. In Chicago—and increasingly across the country—laws like the ABC test make it clear that most pet care providers should be classified as employees. They formed the coalition to provide guidance, resources, and education on compliance. The coalition’s mission is simple: to show that doing things lawfully doesn’t mean being put out of business. Through education and advocacy, they help businesses that want to operate correctly and support those already compliant. Membership is currently free and available to pet care business owners at all stages—from startups to established operations. Lauren broke down the difference between an employee and an independent contractor using the ABC test. The first part of the test focuses on control—if the business dictates how, when, or where work is done, the worker is an employee. The second part examines whether the work performed is part of the company’s usual business. For example, if a dog walking company’s workers are walking dogs, that’s central to the business—making them employees. The third part deals with financial control, such as setting rates, providing uniforms, or controlling pay. These all indicate employee status. Lauren pointed out that many pet care companies, including gig platforms like Wag and Rover, misclassify workers to cut costs, but that doesn’t make it legal. Each state has its own tests, and some—like California and Massachusetts—have stricter laws. States increasingly share audit information with federal agencies, which can lead to double penalties for noncompliance. Bella shared stories of audited pet care businesses that faced costly penalties for small technicalities, such as providing a dog bowl or routing payments incorrectly. She emphasized how important it is for owners to understand the risk they take by misclassifying workers. As coalition members, business owners gain access to free consultations with the founding team, compliance guidance, and referrals to trusted professionals like labor lawyers and accountants. Members also receive access to a private online portal with step-by-step guides for becoming compliant, articles that simplify legal concepts, monthly expert webinars, and newsletters with legal updates. The coalition connects members with resources tailored to their state and helps them take proactive steps toward compliance. Lauren explained that their goal is to elevate the entire industry by ensuring workers are treated fairly and business owners are protected from risk. They’re not lawyers—they’re advocates who make the legal aspects understandable and connect members with legal professionals when needed. Their national expansion reflects their desire to unify the pet care industry and share resources across states. Katie shared a real-life example of the consequences of misclassification. One of their co-founders faced an audit when a former dog walker, who left on good terms, filed for unemployment. The Illinois Department of Employment Security (IDES) determined the walkers were employees, not contractors. The owner owed about $10,000 in back taxes and had just 30 days to reclassify all workers, obtain workers’ compensation, and file new paperwork. Failure to comply could have resulted in fines of up to $500 per day, with a minimum of $10,000, and even personal liability for business owners. The coalition’s website even includes a calculator that lets business owners estimate potential fines and back taxes if audited. It’s a sobering tool but one designed to encourage responsible action. Bella praised the coalition as one of the most valuable podcast guests she’s ever hosted, calling their work essential for the entire industry. She urged listeners to share the episode widely, join the coalition, and help spread awareness. The coalition’s website is www.petindustrycoalition.com. Bella wrapped up by reminding listeners: when life gets you down, always keep jumping. So what did you think? Did you love this episode? I sure hope you did because I put a lot of love into this for you. The best way you can show me that is by going to iTunes, Stitcher, Google Play, or wherever you listen to your podcast and leaving a review. I just might read it on the next episode. I also want to remind you that when life gets you down, remember to always keep jumping. Thanks for listening.