Stories of Technology, Innovation, & Entrepreneurship in the Southeast

Every day, dozens of people gather inside and around the LaborExchange on Chapman Highway looking for day work.

For 13 years, the small but impactful shop has connected more than 600 individuals with day-labor opportunities across the region, ranging from construction site support and landscaping to loading and assembly lines.

At the heart of it all is Kelly Peterson.

She’s the owner of the decade-old business and the driving force behind its growth and success. But when you talk to Peterson, you quickly discover that the dream wasn’t originally hers — it was her husband Bill’s.

Building LaborExchange

“He had been in HR and saw an opportunity to do HR for temp work. Instead of joining a franchise, he decided to build LaborExchange from the ground up,” Kelly said.

Bill laid the foundation, and Kelly worked alongside him as a staffing specialist. She ran the front of the house while he managed the back. Together, they brought his vision to life.

Kelly remembers Bill working in the office right up until the day he passed away in 2018.

“At that moment, I had to decide whether to run the business or sell it. I had never run a business before,” she said. “But I thought I could do it—for him and our family.”

By what Kelly calls “the grace of God,” operations never skipped a beat. Her daughter stepped in to help, driving up from Jacksonville one week each month to help with the back office side of the business.

“My daughter is really the one who kept my head above water that first year,” Kelly said. “The second year was much better, and by the third, I realized I was completely comfortable with what I was doing.”

She had to quickly learn how to handle challenges—from business insurance claims and ACA forms to check fraud cases, and temp worker injuries on the job.

“There were so many things that came along. I just had to make decisions,” she said. “And then I realized that everyone makes decisions based on what they know at the time. You learn from each decision.”

How LaborExchange Operates

“The benefit of day labor is that our people work that day and get paid that day,” Kelly said. “It’s a secure way to make $100 in eight hours.”

LaborExchange specializes in connecting workers with these day-labor projects. Companies reach out with a job in mind, negotiate a rate, and pay LaborExchange after being involved.

Each morning, Kelly’s staff reviews the day’s available jobs and combs through their database of thousands of individuals to find the best matches. She also accommodates walk-ins and places newcomers on jobs when possible.

“If we can’t get a hold of someone, we move on to the next,” she said. “It’s a daily puzzle.”

Once the day’s workers are selected, Kelly and her team help outfit them with necessary gear, such as boots, helmets, jeans, gloves, or whatever is needed. The workers complete the job, and LaborExchange pays them directly.

“I think we worked 656 people last year,” Kelly said. “About half of those only worked one, two, or three days total. Then you’ve got around 300 who worked for a few months, and probably 50 who worked consistently throughout the year.”

A Lifeline, Not Just a Job

As Kelly reflects on how far the business has come, she’s proud of its evolution. While Bill focused on the business side, Kelly leaned into the people side. It is a shift that has given LaborExchange a greater purpose.

Two main groups typically seek temp work: those who want flexible schedules, and those who rely on it to make ends meet. Kelly invests most of her time supporting the second group.

Many of the individuals who walk through the door don’t have access to reliable transportation, healthcare, or housing. Almost all are living paycheck to paycheck.

To help, LaborExchange partners with the Knoxville Convention Center to collect surplus food from events, providing workers with lunches. Kelly also maintains a large board filled with local resource information such as RAM clinics, KAT bus routes, driver’s license reinstatement programs, and kitchen locations offering free meals.

“There are very few people who work with us who have a place of their own,” Kelly said. “Many stay in motels up and down Chapman Highway and pay about $70 a night.”

With many jobs paying $100 a day, that leaves just $30 for gas, snacks, or bills.

“It’s a vicious cycle,” she said. “And getting out of it is almost impossible. I’ll be honest. But we have helped a few people do it.”

For those who showed drive and desperately wanted to break free, Kelly has helped cover down payments on apartments. It opened the door for more stability in housing and life overall.

“One of them stayed for two years. One of them is still there,” she said. “I have every intention of trying it again with one of our workers who’s just been recruited full-time by one of our companies.”

Recognized for Impact

Despite having just five full-time staff, LaborExchange is making a major difference—and the community has taken notice. At the recent Pinnacle Business Awards, the Knoxville Chamber honored LaborExchange in the “Women-Owned Business Excellence” category.

“I’m 62, and I’ve lived a lot of life,” Kelly said. “There are so many things you do that never get recognized. This meant so much to me.”

With the help of her tight-knit team and a whole lot of grit, Kelly has taken LaborExchange to heights she never could have imagined in 2018, in the days just after losing Bill.

What started as her husband’s dream has become her mission. When asked what Bill would think of the company’s growth and impact, Kelly paused, smiled, and said, “He would be proud.”

Learn more about LaborExhange.

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