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Temporary Staffing Compliance

Staffing agency employees are typically referred to as temporary or provided employees. Whether or not the job is truly temporary, "temporary workers" are workers who are provided to a host company and paid by a staffing agency. All employees have the right to a secure and healthy workplace, regardless of whether they are temporary or permanent. As joint employers of temporary employees, the staffing agency and its client (the host employer) are each accountable for creating and keeping a safe working atmosphere for those employees. To ensure that OSHA requirements are completely met, the staffing agency and the host employer must collaborate. Employees are incorrectly categorized as independent contractors. Since 2010, the IRS has intensified its efforts in this area, and it has pledged to continue doing so.

Job Listing Discrimination

No language that expresses preference for an applicant based on protected information or characteristics should be used in recruitment ads. This includes, but is not limited to, genetic information, age, national origin, race, color, and faith. It also includes sex (including gender identity, sexual orientation, and pregnancy). Even requesting "recent college graduates" could be seen as discriminatory. Ixela Solutions writes objective job descriptions and always checks if such job listings that are adhering to best practice standards.

​Inappropriate Interview Questions

It is best to avoid asking questions during an interview that could reveal protected characteristics, delve into a candidate's personal matters, or divulge affiliations unrelated to the position. Asking about any of these matters may not only irritate a prospective employee, but the employer risks facing legal action for employment discrimination. Ask questions that will allow candidates to demonstrate their abilities instead. Employers cannot reject a candidate on the premise of a disability if they disclose one and ask for reasonable accommodations.

Noncompliant Leave of Absence Policies and Processes

It can be difficult to manage employee leave and striking a balance between maintaining productivity and adhering to federal, state, and local leave laws. It is imperative to make sure employee policies and leave administration procedures adhere to all relevant regulations to lessen employer liability. While some paid leave options are mandated by legislation, other options are offered voluntarily by employers. Employers might be shocked to learn which benefits are not covered by the Fair Labor Standards Act (FLSA), despite the fact that some of them are. For instance, the FLSA does not govern sick time or holiday days. However, under the Family and Medical Leave Act (FMLA), some employees may be eligible to reasonable amounts of unpaid, job-protected time off for situations like childbirth or providing care for a seriously ill family member. The employer is stuck with the responsibility of gathering and verifying medical information related to their leave request because not everyone is qualified for coverage and employees are not required to specifically mention the FMLA when asking for time off for family or medical reasons. This federal legislation mandates that employers with 50 or more workers must offer up to 12 weeks of unpaid leave to their covered employees for a covered family or medical situation every 12 months. Employees who have worked for the business for a total of one year over the past seven years and put in 1,250 hours in the 12 months before the vacation is taken is considered a covered employee.

Misclassification of Workers

Because it has an impact on overtime pay and tax payments, misclassifying a worker can occasionally cause employers to incur severe fines. Employers must first differentiate between independent contractors and employees in order to correctly handle classifications. Employers need to identify the workers who are subject to the FLSA's non-exemptions, as they must be paid overtime and the minimum pay. Worker's compensation code misclassification can also be an issue when hiring employees. When an employer has made a classification error, they are responsible for paying the outstanding amount. Some states carry severe penalties for misclassifying workers. Ixela Solutions works hard to ensure that employees are classifed correctly.

Joint Safety

Clients companies and staffing firms typically share job responsibilities. Employment taxes, benefits, and insurance for jobless and workers' compensation are all paid by staffing companies. Clients oversee the employee's work and offer a secure workspace along with the necessary materials for information, training, and tools. The Occupational Safety and Health Administration (OSHA) mandates that almost all employers create action plans for averting and handling workplace crises. The Temporary Worker Initiative (TMI), which OSHA launched in 2013, essentially links temporary services providers and hosts as joint employees for the purposes of accountability for adhering to OSHA regulations.

Union Membership and Organization

Employers might be surprised to learn that even if their company does not hire unionized workers, the National Labor Relations Act still applies to it. (NLRA). The NLRA is applicable to all private employers that are involved in interstate trade, with very few exceptions. The act guarantees workers the freedom to associate with a union of their choosing and engage in collective bargaining with their employers. The NLRA does, however, also offer security for employers, including a ban on strikes by workers for issues unrelated to pay or working conditions.

Improper Training or Orientation

New hires benefit from orientation by learning about a company's operations, policies, and code of behavior. Employees who are aware of proper conduct and know how to report harassment and other instances can reduce the risk of legal action. Additionally, it can be helpful for new hires to observe their colleagues for the first few days so they can learn how to work efficiently and securely.

Unpaid Final Wages

The majority of states have rules defining the timing and method of final wages payment. It's essential to check the regional laws as some states mandate that companies issue a paycheck on the employee's final day of employment. To avoid overpayment, Employers should also quickly update employee records. Employees should only receive the pay and benefits to which they are legally entitled, according to an automated payroll system that has been correctly integrated with other HR tools. Different minimum hourly pay amounts are mandated by many states. Additionally, some states, like Utah, demand that the final paycheck be paid right away after the temporary job is completed.

Mismanaged Worker's Compensation

Workers' compensation claims must be made as soon as feasible after accidents occur on the job site. Employees should know to disclose accidents right away, and managers  should know how to file claims legally. Knowing the accident trends in your industry and putting safety programs in place to stop avoidable injuries helps reduce the risk of workplace injuries. Additionally, as proof of insurance protection, Ixela Solutions offers their clients an official Certificate of Insurance (COI).

Unfair Pay Practices

Several states have laws addressing gender pay inequality in addition to the Equal Pay Act, a federal law requiring equal compensation for equal labor. And even though an employer may have every intention of abiding by these laws, gender wage gaps can unintentionally arise over time as a result of hiring, moving, and promotions. Conducting routine pay audits can help avert this situation. Ixela pays our nonexempt employees overtime at the rate of 1.5x their regular rate.

​Inaccurate Tax Payments and Payroll

Ixela enforces strict workforce compliance in the areas of onboarding new employees, payroll handling processes, insurance requirements, and background checks before hiring. US temporary employees have access to Social Security benefits and are eligible for unemployment benefits. Employers must compute salary taxes and submit them to the appropriate authorities to avoid audits and penalties. The majority of temporary and contract workers hired by staffing agencies are categorized as W-2 employees and as a result are protected by labor, employment, and benefits laws, despite the fact that their jobs have some "gig" characteristics (such as flexibility and short tenure). Employers are required to pay both federal and state unemployment insurance taxes (FUTA and SUTA) in order to support a temporary source of revenue for unemployed people. Ixela follows all federal I-9 form requirements put in place by the Department of Homeland Security.

Inadequate Health Coverage

Health insurance is a benefit that many companies provide to their staff, but depending on the size of the company, it might also be required. The Affordable Care Act requires employers with 50 or more full-time or full-time equivalent employees to offer insurance or risk penalties. The health plan must also meet ACA requirements for affordability and minimal value. Ixela's conventional temporary hiring services are compliant with ACA regulations.

Reporting New Hires

When hiring or rehiring an employee, employers have 20 days to inform their designated state agency. In some regions, the deadline is even shorter, and failure to comply could result in a fine. ​At Ixela Solutions we report all of our new hires in a timely manner.

Background Checks - FRCA Standards

Employers may be accused of discriminatory hiring practices depending on when and how a background check is conducted. Fair Credit Reporting Act (FCRA) requirements have lately come to light, placing some limitations on how the hiring process must proceed. In general, employers are not permitted to start a background investigation until a candidate has passed the screening procedure and a job offer has been made and accepted. Ixela is familiar with FCRA standards. 

Equal Opportunity Employment

Ixela Solutions takes great pleasure in being an organization that values equality and diversity in the workplace. We do not discriminate on the basis of gender (including pregnancy, childbirth, or other related medical conditions), sexual orientation, gender identity, gender expression, age, veteran status, disability status, or any other characteristics that may be legally protected.

Staying on Top of Regulations

There are various compliance requirements for temporary hiring in every state, community, and nation. If you plan to hire a temporary worker through a licensed staffing service in another area, you must ensure that both your state's and city's temporary worker laws are followed. In some jurisdictions, employment firms determine pay scales. In some cases, the hiring business is the one who does this. Understanding the country's laws on hiring a temp to perm employee is important if you are recruiting across foreign borders. In some nations, hiring temporary employees in a nation where the agency lacks a legal entity is prohibited; in others, it is permitted. You need to remain up to date on new legislation and amendments to existing laws that are relevant to your business if you want to achieve company-wide compliance. Ixela has a strong grip on the regulatory environment by:

  • Reading the news releases that lawmakers have issued, and sign up for Department of Labor and other government agency updates.

  • Conducting routine compliance audits, and have a member of the leadership team take immediate action to correct any issues.

  • Following discussions on government webpages and journals to foresee future changes.

  • Joining conferences where speakers from governmental authorities will be speaking and network with other HR executives.

Join forces with staffing agency who stays compliant on current state and federal laws and regulations.

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