Thursday, March 25, 2010

Use of Temporary Workers Also Invites Exposures to Lawsuits

Workforce Management
March 2010
Attorneys say temporary workers hired through staffing agencies generally are considered to be employed by both the agency and company, even though the agency pays the salary. By Judy Greenwald

As the use of temporary workers increases, employers need to guard against the potential liabilities and other pitfalls of bringing in such workers, experts say.
Even though a staffing agency may cut a temporary worker’s check, experts say employers remain obligated to comply with state and federal employment laws, including discrimination statutes. There also are situations in which an employer could be required to provide benefits, experts say.
After several months of declines in the number of temporary help services employees in the U.S. workforce, the figure hit a yearly low in July 2009 at 1.7 million. Since then, the number has risen, hitting an estimated 1.9 million in December on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. The BLS does not track temporary workers or independent contractors hired directly by employers, a much smaller number than temp workers hired through agencies.
Observers say the recent temp hiring upswing could reflect an improving economy.
“I’m hopeful this is a sign that employers are dipping their toe back into the water,” says Lorie E. Almon, a partner with Seyfarth Shaw in New York, who has seen increased client interest in hiring temporary workers.
Attorneys say temporary workers hired through staffing agencies generally are considered to be employed by both the agency and company, even though the agency pays the salary.

Full Story: http://www.workforce.com/archive/feature/27/07/75/index.php

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