Today's Contingent Workforce

The temporary or contingent workforce is the fastest growing segment of the national workforce in today's economy. Contingent workers are those who are hired through staffing firms or leasing companies and whose jobs are structured to last only a certain length of time. The contingent workforce may include part-time temporary workers, independent contractors, consultants, contract employees, leased employees, and direct hires. Other than some leased long-term employees, most contingent workers are considered "temporary" and therefore the terms "contingent" and "temporary" are often used synonymously. While most companies hire only a few contingent workers at a time, some firms may lease their entire workforce on a quasi-permanent basis

Using contingent workers may provide employers with flexibility and cost-savings. However, there are numerous legal and practical considerations that employers must take into account before utilizing contingent workers.

Legal Points that need to be covered:

Employee or independent contractor? If a contingent worker is an employee, then the employer has a variety of obligations under federal and state law. The individual may be an employee of both the company and the staffing agency.

At will. Are contingent workers at will? If there is a contract, is it in writing? In the absence of a written document that states either that the worker is at will or the terms of employment, the company may face a claim of an oral employment contract.

Immigration laws. Contingent workers who are employees must still be qualified to work in the United States. If you obtain contingent workers through an agency that employs them, you can require the agency to confirm the individual's right to work in this country. If you attempt to use contingent workers as "independent contractors" to avoid the I-9 form, please keep in mind that the Immigration Service may maintain that the worker really is your employee, and that you are still responsible for completing an I-9.

Occupational Safety and Health Administration (OSHA). Contingent workers who are employees are to be provided a safe work place under OSHA standards. Contingent workers who are not employees may be able to sue for negligence if harmed at your workplace.

Discrimination laws. Generally, if discrimination laws apply to you, they protect not only your regular full-time employees, but also contingent employees and some independent contractors. EEOC looks at the following factors to determine if a contingent worker is an employee or an independent contractor.

For additional information, please contact Tammy Hancock at 616-538-7100 or thancock@gabridgeco.com.

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