Understanding Employment Law Basics for Temp Staffing

Temporary staffing agencies in Cleveland and elsewhere offer necessary flexibility for businesses whose workflow demands it. That said, this flexibility does not negate certain legal requirements and considerations. Instead, both job placement agencies and employers alike must be in compliance with various employment laws. Understanding the basics can help all parties to reduce risk and create a better experience for both job seekers and employers.

The often short-term nature of temporary work is still protected by employment law. Your local Cleveland temp employment services staffing agency, DeLong Staffing Specialists, takes this seriously and is happy to share the basics with our clients and recruits. Here you’ll find what you need to know to ensure that your business is compliant and that recruits and the hiring process are being properly managed.

What Does Temporary Staffing Entail?

At DeLong Staffing Specialists, we work with three main categories of job seekers: temp-to-hire, contract, and direct hire. Workers are employed by our staffing agency and then assigned to a client company in response to a specific need. We work with employers in the industrial, manufacturing, customer service/call center, accounting/finance, information technology, office/clerical, and administrative fields, and find job seekers who fit the specifications of any number of open positions. 

Because our employment agency is technically the employer of the worker, we share certain responsibilities with our client. This staffing partnership, or staffing agency–client relationship, divides the roles and responsibilities between us when finding and hiring a new recruit. 

General Staffing Agency Responsibilities:

• Recruiting
• Payroll processing
• Certain HR functions
• Benefits administration (when applicable)

General Client Company Responsibilities

• Day-to-day supervision
• Workplace safety
• Assignment management

There may be other responsibilities that apply–each case is unique, and these can vary depending on the arrangement, industry and placement.

Core Legal Responsibilities For Agency and Employer

A common term that is used to describe the partnership that exists between a staffing agency and an employer is co-employment. This is a commercial relationship, and both parties–in this case our employment agency and the eventual employer–both have their own set of actual and legal rights and obligations to the same temporary worker. Here is a more detailed look at what this might include.

Wage and Hour Compliance

Wage and hour compliance needs to fall in line with the Fair Labor Standards Act (FLSA). This act establishes minimum wage, overtime pay, recordkeeping requirements and more. While the staffing agency typically processes payroll and handles tax withholding, both entities are still required to ensure that the temp worker receives pay in line with the local and agreed-upon rates. Overtime regulations need to be abided by as well and accurate timekeeping is a must to mitigate risk and ensure fair treatment for the worker. While a temporary worker may come and eventually go, they are still generally entitled to the same wage protections as other employees while in their hired position.

Workplace Safety Requirements

Both the agency and the client share joint responsibility to maintain a safe work environment, in line with Occupational Safety and Health Administration (OSHA) requirements. While the employer, or the staffing agency’s client, will be held responsible for site-specific, on-the-job hazards and providing appropriately corresponding Personal Protective Equipment (PPE), the employment agency also bears some responsibility. For instance, when the experienced recruiters at DeLong Staffing Specialists onboard new hires, they ensure that workers have received adequate general training, including safety training, relevant to the position and industry. They also take reasonable measures to determine the conditions at the worksite and advise temporary and contract employees as to how they can obtain more specific information if need be.

Anti-Discrimination and Equal Employment Laws

From prescreening and background checks to who gets the final callback and how a worker is treated on the job, both the employment agency and employer need to be in line with Anti-Discrimination Equal Employment Opportunity Commission (EEOC) guidelines. Under these extensive regulations temporary workers are protected from workplace retaliation, harassment and discrimination based on race, sex, age, disability, or national origin. Employers are legally responsible if a temp worker is subject to a hostile environment just the same as if they were a permanent employee. Consistent company policies and policy execution are vital to keep everyone safe and protected.

Proper Worker Classification

Proper worker classification is vital because it determines tax and legal liabilities and can hurt worker, agency and employer alike if handled incorrectly. For instance, misclassifying workers as independent contractors can trigger serious penalties. When working through an employment agency, workers are typically W-2 employees of the agency, who receives funds from the employer and then use these to run payroll, pay for benefits, and support administrative work. 

Leave and Accommodation Considerations

Temporary staffing agencies need to communicate openly and honestly with job candidates and employer clients to ensure that they are in compliance with the requirements of the Americans with Disabilities Act (ADA), Family and Medical Leave Act (FMLA) and Pregnant Workers Fairness Act (PWFA). These stipulate that reasonable accommodations be made and modified leave be made available to temporary workers for a range of reasons. Staffing agencies in Cleveland are required to clarify with the client employer which entity will provide for and fund the accommodation. 

Common Employment Law Mistakes

In all cases, good documentation is key. This can include keeping up-to-the-minute time records and detailed assignment agreements along with safety training documentation and performance records. When temporary staffing agencies and employers are dedicated to good documentation this can go far to improving communication, supporting compliance efforts, and reducing misunderstandings between staff, employer and agency.

On the other hand, when a company has poor timekeeping practices and miscommunication regarding roles and responsibilities, these mistakes can cause serious issues down the road. Employment agencies also need to focus on adequate onboarding and safety training, proper documentation and worker classification. When things are done correctly and responsibly, short-term workers will receive everything they need to be productive, and employers will do all that is necessary to be compliant while also mitigating risk.

DeLong Staffing Specialists: Your Local Temp Employment Services Staffing Agency

Temporary staffing agencies help to reduce compliance challenges, but they can do so much more. At DeLong Staffing Specialists we act as our clients’ partners. From candidate screening and payroll administration to regulatory awareness, HR considerations and workforce flexibility, we support candidates and employers alike, ensuring that needs are met and requirements are accounted for. Temporary staffing can be an effective workforce solution for your business, but it is vital that you partner with a staffing agency that understands employment law fundamentals, helping to protect everyone involved. When you work with us, you can expect strong communication and a dedicated partnership to your workplace success.

Contact DeLong Staffing Specialists to learn more about our offerings. Employers can also submit a request for more information and job seekers can submit a resume online. Check out what our customers are saying and view open positions, then reach out and get started on your employment journey.