Who's the boss?
November 13, 2006 10:11 AM Subscribe
Does anyone know anything about the law regulating a staffing business?
Specifically, does anyone have experience setting up a staffing business in which the staffed workers are NOT considered employees of the staffing company? I have googled the heck out of this, but haven't found any good leads. I am particularly interested in Missouri law.
From what I've seen, it seems that a temporary staffing company is considered an employer of its workers, while an employment agency that places candidates for permanent positions is not considered the candidates' employer. But is the distinction really temporary vs. permanent? Or does it depend more on other factors, such as who maintains the payroll?
I know this is a very specific question, and I don't really expect anyone to have all the answers for me, but if you have any experience in the area and could point me to some useful resources, that would be very much appreciated.
Specifically, does anyone have experience setting up a staffing business in which the staffed workers are NOT considered employees of the staffing company? I have googled the heck out of this, but haven't found any good leads. I am particularly interested in Missouri law.
From what I've seen, it seems that a temporary staffing company is considered an employer of its workers, while an employment agency that places candidates for permanent positions is not considered the candidates' employer. But is the distinction really temporary vs. permanent? Or does it depend more on other factors, such as who maintains the payroll?
I know this is a very specific question, and I don't really expect anyone to have all the answers for me, but if you have any experience in the area and could point me to some useful resources, that would be very much appreciated.
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Staffing firms, in my experience, are always the employer of record. In fact, being the employer is arguably one of the primary ways the staffing firm provides value to its customers. Its customers can treat staffing labor as a variable expense, without the fixed costs that can come with employees.
A staffing agency that produces people who become employees for its customers would typically be called a recruiter, not a staffing agency. The lines can be blurry though. All staffing agencies I've encountered are happy to let their employees become my employees, for a fee.
Another option is for the staffing firm to hook up 1099 independent contractors with the firm's customers. The catch here is that an "independent contractor" has rather strict requirements of independence that don't typically apply to the jobs given to employees and staff. The IRS publishes information about when a worker is an employee or independent contractor. If you're tempted to call workers independent contractors rather than employees, you may want to check with a labor lawyer first. The IRS has been proactive in going after companies using 1099 contractors, since in many cases it's nothing more than an effort to avoid paying employment taxes.
posted by blue mustard at 12:06 PM on November 13, 2006