Temporary staffing positions are on the rise over the past few years, with some estimates of an increase of 40 percent of more in the demand for outsourced labor. Legislators and labor groups have called for higher regulations and protections for these workers. The IRS has also cracked down on the classification of employees. One thing your agency can do is to have staffing agency insurance to protect your assets in the event of a lawsuit.
Temporary employment appeals to employees and employers, but over the long term, the financial implications are much more devastating to workers. California businesses have a new liability if the staffing agency violates laws and regulations when hiring employees. It’s important that all companies involved in hiring staff communicate about the process to ensure it meets all labor standards. It can be difficult to stay up-to-date with new laws and regulations, but your insurance agency can help.
Even the most professional staffing agency can find itself in trouble and facing charges of wrongdoing if the business doesn’t stay up-to-date with what’s happening in the industry in the states in which they do business. Make sure your organization has the most current information by working with your staffing agency insurance company to have a plan to prevent allegations and to manage potential litigation.