How can you keep contingent workers contingent?
Just because employers do not mean for a contingency worker to become an employee does not mean that it does not occur. Employers must take specific steps to ensure that a contingency worker does not inadvertently have the rights and benefits associated with employment status and to mitigate any other employment liability.
The compliance issues involve:
Before embarking on alternative staffing options, you should first figure out why you want to use alternative staffing arrangements. What is your motivating factor in opting for alternative staffing over permanent employees? If your primary motive is costs, very specific factors will influence your decision, i.e. the kind of work assignment, the going rate of pay of people doing that work, etc. If, on the other hand, minimizing your legal obligations as an employer is your primary concern, your choice should be influenced by the type of arrangement that will relieve you of the most liability.
Applicable state and federal laws
Before you can evaluate your best staffing option, you need to know which laws apply to your organization. Some of the major federal employment laws that apply to business are:
the Age Discrimination in Employment Act (ADEA)-20 or more employees;
the Americans with Disabilities Act (ADA)-15 or more employees;
Title VII of the Civil Rights Act of 1964-15 or more employees;
the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)-20 or more employees;
the Employee Retirement Income Security Act (ERISA)-any employer;
the Fair Labor Standards Act (FLSA)-employee plus enterprise engaged in commerce coverage test;
the Family and Medical Leave Act (FMLA)-50 or more employees;
the Federal Insurance Contributions Act (FICA)-any employer;
the Federal Unemployment Tax Act (FUTA)-any employer;
the Occupational Safety and Health Act (OSHA)-one or more plus commerce requirement;
Worker Adjustment and Retraining Notification Act (WARN)-100 or more employees;
Uniformed Services Employment and Reemployment Rights Act-any employer;
Immigration Reform and Control Act-any employer;
National Labor Relations Act-any employer
In addition to federal laws, employers must also take into account state laws on workers' compensation; state disability insurance; and antidiscrimination, among others. Check State Laws for complete coverage of state laws applicable to the employment relationship.
<p>Just because employers do not mean for a contingency worker to become an employee does not mean that it does not occur.</p>
How can you keep contingent workers contingent?
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