Contract Workers

DCK

We have several IT software developers working with us through a temporary agency. They've been with us for several years now. We are doing our strategic planning, and want to name them as either goal leaders on some IT goals, or as goal team members. I'm a little concerned that we are beginning to treat them like regular employees and run the risk of a "co-employment" situation. Can anyone share their experience in this area, or specific knowledge of problems that have encountered by other organizations.

deniseE

You need to be careful....the contract you have with the agency should state clearly that the consultants are independent ... that the taxes and all other withholdings are the sole responsibility of the contract agency....that benefits are through the agency...

In terms of job assignments, the projects may come from you...but the actual employer needs to clearly be the contract agency...evaluations may have your input...but must be signed by the employer....

Otherwise, you could extend an offer of employment and bring them on as your ee's.

You're right to be concerned....

pork1

DCK: If you truly have had these workers for several years, your company is most likely already into a co-employment situation. What I would consider as strange is why use a temp agency for any more than the guarnteed number of hours before you roll the individual into a fulltime employment situation.

Unless your temp agency is doing things like: issuing work authorizations or daily checking and issuing warnings, or goal changing, and otherwise supervising these employees, the wage and hourly auditors or NLRB would consider these employees to actually be your company employees.

Our temp hires are just that "temporary hires", if we like their working habits and we have an opening they are qualified we must pay the temp agency for a 480 hours of work and income that they would have otherwise been paid. We have on-board an electric certified mechanic at $12.00 an hour. In a couple of weeks we will know wether he has the goods as advertised if not we simply send him home. If he works out, as a real asset we will roll him from temporary to full-time employee and pay tha agency for time lost in income up to 480 hours.

Yes, you can use a temp worker as "team leader", "goal leader", or just "member". At this stage you would probably raise some eyebrows if you were to make a change! For leader positions of worth, you might as well pile it on because the fact that you do not pay the individuals does not effect their member standing , but does cement the thought that these IT personnel are even mother locked into your business plan as an employee.

Good luck on getting your business planned and operating.

PORK