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Temporary Workers Bring Solutions And Risks

According to the U.S

According to the U.S. Bureau of Labor Statistics (BLS), there was an estimated 1.9 million temporary help services employees in December of 2010, on a seasonally adjusted basis. This reflects an uptick over 2009, and it is expected that as the economy improves, increasing more temporary workers will be used. Furthermore, this number doesnt take into consideration temporary workers or independent contractors hired directly by employers.

There are many benefits to hiring temporary workers, including not having to hire full-time workers for a specific project that will run a certain number of months, filling in for an employee who is on maternity leave or vacation, etc. But there are also certain risks.

Even though a staffing agency pays a temporary worker for their services, employers remain obligated to comply with state and federal employment laws, including discrimination statutes. Therefore, employees need to guard against the potential liabilities and other pitfalls of contracting such workers.

There also exist situations in which an employer could be required to provide benefits, according to some experts. Attorneys say temporary workers hired through staffing agencies are generally considered to be employed by both the agency and company, even though the agency pays the salary.


Temps may have same status as employees

Some employers don't realize when they hire temporary employees through temp agencies they're potentially exposing themselves to most, if not all, the same risks that are involved in directly hiring employees, said Enzo Der Boghossian, an associate with law firm Proskauer Rose L.L.P. in Los Angeles, California.

As long as you control those employees and you require them to adhere to your polices and they are directly supervised by the firm, they can be found to essentially be your employee under various employment laws, said Mark M. Schorr, a partner with law firm Erickson & Sederstrom P.C. in Lincoln, Nebraska.


Some claims may fall directly upon employers shoulders

There are elaborate agreements that dictate that the individual remains the legal employee of the temporary agency, and the temporary agency is legally bound to pay their wages and their workers compensation insurance and all of that, Mr. Schorr said. But when it comes to employment, discrimination and sexual harassment claims, a myriad of laws protect workers even though they're not technically employed by that employer, he said.

Whether workers insurance are brought in by a staffing agency or directly, observers say employers need to be concerned about employment laws and benefits. Failing to clearly define what is considered temporary employment runs a real risk that one of those Contingent workers could claim they were entitled to benefits under that plan.

by: JoeK.Lunceford
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