A.R. Mazzotta - Connecticut Employment Specialists

In the wake of historic employment litigation (e.g., Vizcaino v. Microsoft), some companies have adopted policies limiting assignment length for temporary and contract employees from staffing firms.  Why?  These employers view assignment limits as a way to protect themselves from the kind of “retro-benefits” claims Microsoft faced back in the 1990s.

Unfortunately, these assignment limit policies have downsides.  They can cause economic harm to on-time temporary or contract employees whose assignments are terminated prematurely, and they can disrupt your company’s business operations.  To better protect your organization, you should closely examine its staffing policies to ensure that such limits are truly necessary – and not based on misinformation.

If you have questions about co-employment law, as it relates to assignment limits and associated benefits, here is a great resource with the answers you need.  The American Staffing Association’s Staffing Smarts Intelligence Report:  Assignment Limits and Concerns About Benefits Liability, by Edward A. Lenz, Esq., General Counsel, reviews the basic principles of law that apply to employee benefits plans, and then describes steps employers can take to avoid retro-benefits exposure:

Create a plan that expressly excludes staffing firm employees. The report suggests template language (that your legal counsel should review)  you can use for the purpose of excluding staffing firm employees from participation in your Erisa plan.

Use employee waivers. In addition to amending benefits plans, you may be able to achieve additional protection through agreements in which the staffing firm’s employees expressly waive their right to the company’s benefits.

Allow the staffing firm to handle employment related functions for temporary and contract staff, such as:  recruiting, screening, determining wages, hiring, firing, assigning, resolving disputes, disciplining, etc.

Keep the lines between direct staff and contingent staff clear. The report includes several other steps (such as channeling social invitations through the staffing firm) you can take to avoid blurring the distinction between your core staff and temporary employees.

Make Co-Employment Work with A.R. Mazzotta. Read our tips for successful co-employment or contact A.R. Mazzotta Employment Specialists with your staffing questions.  Our goal is to help Connecticut employers like you use staffing to achieve more.

Temporary employees can be a great asset to your organization.  They can help you meet critical deadlines, fill-in for unplanned absences and free your core staff to focus on their most important tasks.

But if your company uses large numbers of temporary employees, it’s easy for your direct staff to fall into an “Us vs. Them” mentality.  And while treating temporary workers as an entirely separate workforce may seem innocuous, the practice can have unintended consequences for your direct employees.

For example, research from the University of Arizona has found that direct employees (particularly at lower levels) are less satisfied with co-workers and bosses when working with a higher proportion of temporary employees.  Why?  The responsibility of training and socializing temporary workers on company-specific processes is often assigned to direct employees.  As a result, having more temporaries can complicate full-time workers’ jobs.

Here are a few suggestions for improving the working relationship between temporary and direct employees to achieve even better staffing results:

• Make temporary employees feel welcome.  While temporaries are, in fact, a separate part of your workforce (and must be treated differently because of co-employment laws), you and your staff can still make them feel welcome in your organization.  By encouraging social interaction (e.g., formal or informal introductions) among all workers, you can foster social ties that are essential to a cohesive workforce.
• Educate your direct staff.  Take the time to clearly explain the role and value of temporary workers.  The better your direct employees understand the benefits temporary help provides, the more likely they’ll be to work productively with them.
• Take advantage of training.  If you use large numbers of temporaries, many staffing services will develop customized orientation and training programs for specific positions.  This shifts the time-consuming burden of getting new temporary employees up-to-speed off your direct employees’ shoulders.

Click here for more tips on keeping your temporary employees productive and efficient.

Bottom line, there are a number of steps you can take keep relations between temporary and direct employees positive.  And the more positive their working relationship, the better your results will be.  Contact A.R. Mazzotta Employment Specialists today to learn more about our staffing services for Connecticut employers.