Workers’ Compensation for the Temporary Staffing Industry
Temporary staffing agencies purchase their workers’ compensation coverage from insurance carriers who specialize in this market.
- In most states the employees of the temporary staffing agency are considered employees of the agency, not of the agency’s client.
- The cost of coverage fluctuates based on the nature of the employees.
- Temporary staffing agencies that specialize in office workers will have much lower work comp cost than agencies that specialize in construction workers.
- Due to the fluctuating types of employees, the work comp insurance carriers will audit the agencies payroll records on at least an annual basis.
- In some situations, the carriers may adjust the premium quarterly or even monthly.
Safety is an on-going issue for most temporary staffing agencies.
- The frequent turn-over of their employees makes teaching proper safety methods an on-going challenge.
- Temporary staffing agencies will often not know what their clients will have in the way of a safety program.
- The workforce of the temporary staffing agencies is constantly changing for most agencies.
- The temporary staffing agencies that specialize in one area, for instance accountants, will have a total different workforce then the agency that specializes in warehouse workers.
The cost of medical care will overall reflect the work of the clients where the employees of the temporary staffing agency are placed.
- Most of the clients of the temporary staffing agency will not have an on-site medical facility.
- Medical care will normally be provided by nearby medical providers.
- The selection of the medical provider will be determined by the state where the accident occurs.
Indemnity benefits for employees of temporary staffing agencies will also reflect the nature of the work done for the agency’s clients. The level of indemnity benefits depends on the state and the wages earned by the employee.
Some categories related to temporary staffing agencies that would have the same or similar work comp issues include:
- Employment agencies for permanent employment
- Maid services
- Home health care services
- Volunteer service organizations
Transitional / Modified Duties for Temporary Staffing Agencies
A temporary staffing agency’s ability to provide accommodations for restricted employees depends on its clients job availability and job requirements. If staffing agencies have clients with work that meets the physician’s assigned abilities then placement should be possible. Some of the industries that may offer “lighter” jobs and utilize Temporary Staffing Agencies include:
|Any – Office Work:||Sedentary restrictions could be accommodated in an office environment.|
|Manufacturing – Light Assembly:||A plant with light assembly might be a good fit for an employee with lifting weight restrictions.|
|Any – Customer Service:||Sedentary restrictions could be accommodated for a company with telephonic customer service opportunities.|