assignment ended staffing agency

A Win for Staffing Agencies in California 

Topics: Court Decisions , Employee Hiring, Discipline & Termination

A key issue that staffing agencies often face in litigation is whether the end of a temporary work assignment constitutes a “discharge” of the employee’s employment with the staffing agency. In a favorable ruling for staffing agencies, the California Court of Appeal in Young v. RemX Specialty Staffing et al .  held that the answer to this question is a resounding “No.”  

Basic Facts 

Plaintiff Vanessa Young (Plaintiff) was hired by staffing agency RemX Specialty Staffing (RemX) and placed on a temporary work assignment at Bank of the West (BOW).  RemX ended Plaintiff’s assignment at BOW for allegedly being verbally abusive on the phone. Plaintiff testified that she was “fired” and that it was “implied” that the firing was from RemX, rather than just ending her assignment at BOW. Plaintiff was paid for her work performed on the assignment in accordance with RemX’s regular payroll schedule. She did not have any other work assignments with RemX but remained eligible for additional assignments.

Plaintiff sued RemX, and after a series of motions and appeals, her only remaining claim was for PAGA penalties based on RemX’s alleged failure to timely pay final wages to a discharged employee, in violation of Labor Code section 201.3(b)(4). That statute provides “if an employee of a temporary services employer is assigned to work for a client and is discharged by the temporary services employer or leasing employer, wages are due and payable” immediately. RemX moved for summary judgment, arguing that Plaintiff was not discharged from employment with RemX, but only her assignment at BOW, and therefore, it did not violate section 201.3(b)(4). The trial court granted summary judgment for RemX and the Court of Appeal affirmed.

Legal Reasoning

The Court of Appeal rejected Plaintiff’s argument that a “discharge” under the statute can either mean from the staffing employer or from the temporary assignment. Looking at the legislative history and statutory construction, the Court held that a “discharge” only occurs when the staffing employee is fired from the temporary services employer (i.e., staffing agency), and not when the staffing agency terminates an employee from a particular work assignment. Because the Plaintiff failed to demonstrate a dispute of fact as to whether she was discharged from RemX, summary judgment was proper. 

Young is a huge win for staffing agencies, which are often the subject of costly class and PAGA actions based on technical Labor Code violations. While this holding is arguably limited to cases involving Labor Code section 201.3, it may enable staffing agencies to argue that the end of an assignment does not constitute a discharge in other contexts, including Labor Code 202 (when wages are due at termination/resignation) as well as non-wage-based matters like wrongful termination or discrimination suits. 

Please contact the author or your favorite CDF attorney if you have questions about this case or about staffing agency law in California.

For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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HISTORY OF LEGISLATION IN THE UNITED STATES

Know your rights.

Take the temp worker survey to:

Report issues in your workplace

Have an attorney specializing in temp agency law review your experience

Be eligible for a free consultation

Help track staffing agencies and inform other workers

“Know Your Rights” Fact Sheet for Temporary Staffing Workers

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Please note: This fact sheet is not legal advice. You should consult with Temp Worker Justice, a lawyer, or trusted worker center about your particular situation. This fact sheet refers to federal law only. States have their own laws that may provide additional protections for temporary workers.

Compensation

You must be paid for every hour that you work, always at or above the minimum wage, which under federal law is $7.25 per hour, and you must receive time-and-a-half payment for every hour over 40 hours worked per week. Please note that many states and localities have set higher minimum wages than $7.25 per hour, so check with your state and locality on its minimum wage.

Deductions:

Whether a paycheck deduction is legal or illegal depends on the circumstances. Furthermore, many states have passed laws restricting when or how employers can use debit cards to pay workers.

Receiving Payment:

Many temp agencies pay employees using payroll cards, which are prepaid cards loaded with an employee's salary. The use of the cards is legal, but employers cannot mandate payment on these cards, and must make an alternative option available.

Equal Pay for Equal Work:

Unfortunately, U.S. law does not require temporary workers to get paid the same rate as permanent employees doing the same job, though it is common in other countries.

Discrimination

Federal law prohibits both temporary staffing agencies and host employers from discriminating against temporary workers based on their race, color, religion, national origin, gender, or disability. It also prohibits discriminating against women employees because of pregnancy or a related medical condition and employees older than 40 because of their age. Discrimination in the temporary staffing industry is common not only in hiring and job placement, where people of one race or gender are assigned to certain jobs, but also in pay, promotions, and discipline. Either employer, or both, may be held responsible for discrimination, depending on the circumstances. States and localities have anti-discrimination laws, too, so check on the laws in your city and state.

Terms of Employment

Conversion from Temp to Perm:

No U.S. laws require your host employer to offer you permanent employment at any time, though limits on the duration of “temporary” jobs are common in other countries. Many temp workers spend years in the same position as “permatemps.”

Termination:

Unfortunately, absent narrow circumstances (such as discrimination based on race, religion, gender, disability or other protected class, or a union contract), a temporary staffing agency or host employer can terminate your employment at any time for any reason or refuse to assign you to a new job.

Unemployment Insurance Benefits:

If you are terminated (or if after completing a job assignment you request a new temporary position and are denied), you should apply for unemployment insurance benefits. Temporary workers are eligible for benefits just as any other employees, but some states may require you to check in with the staffing agency for more work. Please check with your state’s unemployment insurance benefits agency about eligibility requirements.

Safety & Health

Training & Personal Protective Equipment:

You have the right to work in a safe workplace and to receive the training and equipment necessary to do your job safely. Being “temporary” is not an excuse for an employer to fail to protect your health and well-being. You can report unsafe working conditions anonymously or confidentially to the federal Occupational Health and Safety Administration (“OSHA”) or to your state’s OSHA. (Federal OSHA regulates employers in some states, while other states have set up their own state OSHAs to regulate employers in their states.)

Workplace Injury and Illness:

The temporary staffing agency is usually your legal employer and responsible for workers’ compensation insurance, though in some states the host company may also be an employer. You must report injuries and illness from work to your agency in a timely manner in order for their insurance to cover the costs of medical care and potential lost time at work. In some states, your temporary staffing agency will submit the necessary forms to their insurer and the workers’ compensation agency. In other states, you will need to file a workers’ compensation claim form with your state’s workers’ compensation agency.

Right to Organize

The National Labor Relations Act protects your right to advocate for and join a union in your workplace. It also protects your right to join together with your co-workers to advocate for better working conditions, regardless of whether you are in or want to join a union. Your co-workers are the other temporary workers employed by your staffing agency, but not necessarily the permanent employees, at your worksite.  

TAKE ACTION

Take the temp work survey to identify your needs and concerns. Temp Worker Justice may then follow up with you to help provide information and resources.  

Find out more about what you can do to  Take Action .

MAKE A COMPLAINT

After taking the temp work survey, make a specific complaint against a temporary staffing agency and propose an action. Temp Worker Justice may be able to provide assistance or connect you with a free legal referral. 

Hunter Pyle Law

When are temporary workers owed their final wages.

A recent California Court of Appeal decision explores the question of when temporary workers are owed their final wages. In Young v. REMX Specialty Staffing (2023) 91 Cal.App.5th 427, the plaintiff was hired by a temporary staffing agency in July 2013. She was then assigned to a Bank of the West location and, soon thereafter, terminated. The plaintiff then sued, claiming that she had not been properly paid her final wages upon the termination of her employment.

The case thus turned on California Labor Code section 201.3(b)(4), which provides that if an employee of a temporary services employer is assigned to work for a client and is discharged by the temporary services employer or leasing employer, wages are due and payable immediately.

The plaintiff in Young presented two separate arguments. First, she argued that she had been terminated on August 19 when she was told by Bank of the West that her project had ended and that she should not return to that job site. Because she had not been paid for that work until August 30, she claimed that her final wages were late.

Defendant REMX, the temp agency and the plaintiff’s employer, countered that the plaintiff had not been terminated. Rather, she remained eligible to take new assignments through REMX. The court agreed with the defendant, finding that the plaintiff had not established that she was terminated on August 30.

The plaintiff also argued that her discharge from the temporary assignment at Bank of the West constituted a discharge under section 201.3(b)(4), and that she was therefore entitled to immediate payment of her wages. The court rejected this argument, finding that a “discharge” required the end of an employment relationship. The plaintiff only had an employment relationship with defendant REMX, the temp agency, and not with Bank of the West. Therefore, a discharge from employment could only have happened when the plaintiff was discharged by defendant REMX, and not when she stopped working at Bank of the West.

The court therefore reached the following holding:

We conclude section 201.3(b)(4) applies when a temporary services employer discharges an employee from employment with the temporary services employer, not when such an employer terminates an employee from a particular work assignment.

If your employment has ended and you have questions about the timing of your final paycheck, or whether you have received all wages owed to you, please feel free to contact the employment attorneys at Hunter Pyle Law and to make use of our free and confidential intake process. We can be reached at (510) 444-4400, hunterpylelaw.com, or inquire@hunterpylelaw.com.

Labor & Employment Law Blog

Is a staffing employer required to immediately pay final earned wages to a temporary employee whose assignment ends as a result of their being terminated by a client employer but where the temporary employee remains an employee of the staffing agency?  No, held a California Court of Appeal in the recent case of Young v. REMX Specialty Staffing No. A165081, 2023 WL 3331378, at *1 (Cal. Ct. App. May 10, 2023) .

In this case, Vanessa Young, a temporary employee, was assigned by the staffing company, REMX Specialty Staffing, to work at its client, Bank of the West.  REMX ended Young’s assignment with the bank after Young was verbally abusive to a REMX representative during a  telephone call.   REMX ordered Young not to return to the bank “due to her violent and threatening behavior and as a precautionary measure for the bank,” and notified Young that her project at the bank ended that same day.  Although Young’s assignment ended on a Friday, REMX did not pay Young for her work until Friday of the following week based on REMX’s normal payroll schedule.

Young sued for civil penalties under the California Private Attorneys General Act (PAGA) for late payment of wages.  The claim was based on an alleged violation of Labor Code section 201.3(b)(4), which provides that “if an employee of a temporary services employer is assigned to work for a client and is discharged by the temporary services employer or leasing employer, wages are due and payable immediately.”

In rejecting Young’s claim, the court first characterized the term “discharge,” as used in the statute, as an act that “ends the employment relationship at the point the job or service term is deemed complete.”  It then held that the right to immediate payment of wages upon discharge did not apply in this instance because Young only had an employment relationship with REMX, and did not have one with the client bank.  The court reasoned that since Young’s employment relationship with REMX was not terminated, REMX could immediately reassign Young to a different client, and Young could continue accruing wages.  The court therefore interpreted the law as requiring immediate wage payment when the discharge occurs when a temporary employee is terminated from employment by the temporary services employer, not simply when the temporary employee is terminated from a temporary work assignment.

Section 201.3(b)(5) of the Labor Code provides that if a temporary employee quits their employment with the staffing agency, earned wages are required to be paid within 72 hours.  The court acknowledged that “when an employee quits a temporary assignment, the employee controls the timing [of final wage payment], while when the employee is fired from a temporary assignment, the temporary services employer or client controls the timing.”  The effect of this ruling is to permit staffing agencies to avoid having to immediately pay temporary employees’ earned wages upon the termination of a particular work assignment, so long as they remain employed by the staffing agency and are available for future assignments.

Clients with questions regarding terminations, resignations, and final pay rules in the staffing industry may reach out to the author or their usual employment law counsel at AALRR.

This AALRR post is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. The Firm is not responsible for inadvertent errors that may occur in the publishing process.  © 2023 Atkinson, Andelson, Loya, Ruud & Romo

Ronald Novotny has been representing employers in labor and employment matters in federal and state courts and administrative agencies in California since 1981. He has extensive experience involving union and employer unfair ...

Susan Steward provides expert representation to every client she serves, both as counsel and in the courtroom. Ms. Steward has worked closely with for-profit and nonprofit companies, governmental entities, trade associations ...

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California Temporary Employee Laws And How To Correctly Pay

February 24, 2020    |    By Heidi Corrigan

Many businesses recognize the benefits of having a great staff on hand. It helps the business to run like a well-oiled machine and can certainly help to boost productivity while at the same time, keeping issues at a minimum. At times, however, it may be necessary to hire seasonal or temporary employees. This may happen because of a temporary boost in demand for your services or it may be due to your full-time employees taking a vacation. In either case, it’s important to understand how temporary employees should be managed, including how to pay temporary employees according to California law.

Understanding Employee Classifications

While they can easily be confused, there is a distinct difference between different types of employee classifications. It can be easy for employers to confuse them and find themselves not following the proper labor law as a result.

Part-Time Employee

A part-time employee is an individual who works less than a specified number of hours in a standard workweek. Most employers define a standard week as 40 hours and anything less than that is considered part-time but the Fair Labor Standards Act does not currently differentiate between part-time and full-time employment . Some laws, such as the Affordable Care Act, specify a definition of full time for the purpose of that law specifically.

Temporary Employee

Temporary employment is work or employment where the working relationship is defined to a certain period of time, based on the needs of the employing organization. Temporary employees are hired to assist employers to meet business demands and allow the employer to avoid the cost of hiring a regular employee. Temporary employees often start in temporary positions but move into regular positions after proving to be successful in the position.

A temporary employee usually referred to as a “temp”, might be hired either directly or they can be obtained using a staffing agency. If the latter is the case, the employee is an employee of the staffing agency, not of the business who uses their services. The services that they may provide are varied and can include labor, technology, healthcare, clerical and education. Perhaps you have a need for a specific service at your business, and a temporary employee can fill that need.

A temporary employee may either be on staff full-time or part-time for the duration of their employment. They may not be eligible for most company benefits, such as vacation pay or health benefits but there are certain benefits that are required by law. This would include unemployment and workers’ compensation benefits, among others.

Seasonal Employee

Seasonal employees are typically part-time or temporary employees who are hired into a position for a short term to help out with increased work demands or seasonal work that arises in different industries. Most states restrict seasonal workers to no more than 35 hours per week and six months throughout the year. Seasonal workers are common in industries that have increased workloads during different times in the year such as hospitality, recreational, farming, and some manufacturing.

Payday Laws

In the state of California, it is also necessary to understand the laws associated with paying temporary workers. One of the factors that need to be considered is the minimum wage, which is currently $13 per hour in CA (as of January 1, 2020).

The timing of paying temporary workers also needs to be considered carefully. Under California law , workers must be paid at least twice during each calendar month but there are some exceptions to the rule.

Resonsibilities Of The Employer

In most cases, temporary employees should be paid at the same time as regular employees provided that it is at least twice per month. However, some industries and some specific positions may have different requirements and it is up to the employer to know what labor code they fall under and pay their employees accordingly.

Specific Legislation Surrounding Paydays

Generally, California law specifies that employees have the right to be paid at least twice a month. Employers must designate paydays that meet the state requirements and notify employees of the time, date and place they will be paid. There are also very specific laws that dictate what information must be included on an employee’s paycheck. These rules apply to regular and temporary employees alike.

There are some industry-specific exceptions when it comes to the labor code and pay-period rules. One of the larger ones is the law passed in 2009 that requires staffing agencies to pay all employees weekly. Most of these employees are temporary and the law applies regardless of when their assignment ends.

Penalties For Not Following The Laws

If you pay your employees incorrectly or late, you could face wage and hour claims brought by the employee through the Department of Labor. These claims can include actual wages owed, wait-time penalties and interest. These costs add up quickly and continue to grow until the day the employee is paid any wages owed. In addition to late paychecks, employees can also file claims for missed meal and rest periods and unpaid overtime, among other things.

Remember That It Is The Employer’s Responsibility To Adhere To The Law

The burden for knowing and complying with employment-related laws almost always falls on the employer and payday laws are certainly not an exception. It is incredibly important that you know the regulations that impact your business and that you follow them. It is not only critical in making sure your business isn’t penalized with a wage and hour claim but it is crucial for employee morale too.

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What’s Next? Preparing for the End of Your Temp Placement

You had a great time working on your assignment. But alas, all good things must come to an end.

So…what’s your next move?

Depending upon your situation, there are specific actions you should take as your assignment winds down. By being proactive and communicating effectively, you can get the most from your temping experience and achieve your goals:

If you would like to be placed on another assignment:

As soon as you know your assignment end-date, let your staffing coordinator know that you’ll be available for redeployment. The sooner your coordinator knows your availability, the sooner they can get to work on finding your next opportunity. This step is particularly important if you want to avoid gaps in employment and earn a steady paycheck.

You should also search jobs on your staffing agency’s job board . If you find a great opportunity you’d like to be considered for, follow your staffing firm’s procedures for applying.

If you are looking for a direct-hire position:

Be sure your staffing coordinator and your assignment supervisor know that you want a direct job.  Most temporary and contract positions are designed to end at some point. So, if you want to be considered for a direct-hire position with the company where you’re on assignment, you should take it upon yourself to communicate your intentions regularly.

If you struggled with your assignment:

Your staffing coordinator wants you to enjoy your work as a field associate; it’s their job to place you in assignments that complement your skills, needs, personality and career goals. If, for some reason, you had a difficult time while on assignment, share your concerns with your coordinator. By providing constructive feedback, your coordinator can do a better job of presenting future opportunities that are a great fit.

General tips:

As you approach the end of your assignment, follow these best practices to maximize the value of your temping experience:

• Thank your assignment supervisor. Leave a great impression by thanking your manager for the opportunity to work there. Recap the things you learned and the high points of your assignment. By parting ways on professional terms, you build your network and improve your job prospects.
• Say goodbye to the people you worked with. Assignment co-workers can become valuable connections in your career network. You never know who will connect you with your next job, so be cordial when parting ways. If appropriate, connect with them on social media to keep in touch.
• Update your resume. With each new assignment, you’ll gain job skills and may take on new responsibilities. Add those to your resume while they’re fresh in your mind and be sure to forward the updated version to your staffing coordinator. This step will ensure you’re considered for higher-level assignments, and that your resume is ready to submit whenever an opportunity arises.

Looking for your next assignment or direct job?

PrideStaff can help! Contact the PrideStaff office in your area to find out more about great local job opportunities .

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Director of Operations

Client: Real Estate Firm

“Working with Debi and Nelson Connects is always an absolute pleasure. Everyone at Nelson Connects is personable, responsive and I can tell how much they care about finding the right fit for me at any of my future jobs. Debi specifically has been incredible to work with since day one. She checks in, makes sure I am receiving the support I need and is always willing to go above and beyond. I’ve known Debi for years and will continue to come to her any time I am looking for a new job opportunity and will continue to refer all my friends and family to her! You are in the best hands when working with Debi and Nelson Connects.”

"Nelson Connects, and specifically Eli, changed my life for the better by connecting me with the opportunity to work for a company that excited both my passion and my desire for professional growth. Additionally, Eli was a champion for me and got me the salary and benefits I asked for immediately. My family and I have experienced a tremendous improvement in our quality of life thanks to the hard work of Eli at Nelson Connects. Thankful for all of it!"

"Hi Elke, things have been going great with this company and position! Thank you for your amazing efforts in helping me land this role. Prior to this position, I’d been working as a barista and really felt things were at an all-time low with the pandemic and my luck with finding new jobs hadn’t been great. You helped find a great role for me and I just wanted to thank you from the bottom of my heart. You’re the best!"

"I wanted to let you know I was offered a permanent, full-time position! I couldn't be happier, and I owe it to you - thank you SO MUCH for your help and support with this. This has really changed my life. I am sincerely grateful for all your kindness and support, and wish you the very, very best for the future <3."

"Dear Elke, I want to thank you again for finding me the perfect job. I am so happy. This placement is perfect. I am forever grateful"

"Thank you Elke for assisting me with the employment search and delegating for me to get a higher pay, great schedule and going above for me with the direction on using Smart Train for this position in Novato. I am truly thankful. "

"Hi Elke! Thanks so much! The last 6 months have flown by, but at the same time it felt like an eternity for me to get hired on. I even stopped expecting it, and then it happened! I can’t even tell you how happy I am. This would not have happened without you, and without you fighting for me & getting the door open for me. I’ve enjoyed working with you! And I would do it again. Thank you so much for everything! I’ll keep in touch. "

"Elke and everyone at Nelson have been terrific to work with. I have gotten really fun, dynamic assignments from them at local businesses that I would not have had the chance to work at on my own, from a concierge moving company to a fire station!

After my last assignment ended, Elke contacted me about a great opportunity that was a perfect fit with my background and I ended up hiring on. Her enthusiasm and passion for her work shows through, wherever you are in the job hunting process, and made it a joy to work with Nelson Connects. I wholeheartedly recommend Nelson Connects to candidates and employers and have met amazing people through the company."

Senior Manager, Collections

Client: Education Software Company

“Nelson Connects has been instrumental in providing skilled resources to assist our collections team in driving down aged receivables. The ongoing project has been successful in part due to its outstanding talent and its top-notch management team.”

Candidate: Finance & Accounting

"As an Associate with Nelson Connects from 2000 to 2012 and again in 2021, I have to say that there is no other agency that would care and work with you like Nelson Connects. I've recommended so many of my peers and friends because I know they will receive a positive experience from beginning to end. Thank you for all the amazing years you have given me and all of the wonderful opportunities you have place me on. I love Nelson Connects and am grateful to have such an agency that is committed to assisting their staff succeed."

VP, Finance

Client: Food Industry

“It has been a pleasure to work with Nelson Connects. We appreciate their professionalism and responsiveness. Our Business Development Manager, Suzanne, invests the time to understand the needs of our organization, job requirements for open roles and what we are looking for in candidates and future employees. She has provided us great talent that fit both technically and culturally.”

"Nelson Connects staff are truly wonderful! They took the time to listen to my needs and within a week they presented me with opportunities that matched up with my skills as well as my need to work remotely. They also took the time to continue to reach out after I started my assignment to assure that I was happy. I have worked with other staffing agencies in the past and Nelson Connects is by far the best!"

Client: Finance & Accounting

"I have worked with Nelson Connects over the years and have had nothing but positive experiences with their firm. Besides hiring needs they have proven to be a great resource for other needs such as detail salary information. Most recently we needed a top notch "super" Sr. Accountant that we initially tried to place on our own. The candidates brought to my attention by Nelson Connects were hands down superior to what we were finding on our own. Ultimately, we made a great hire thanks to Nelson Connects' involvement every step of the way! They clearly knew what we needed and did a great job gauging the right person who would also fit in our unique environment."

"I’ve been working with Nelson Connects for a long time now. I love their professionalism and appreciate all their support in furthering my career! I’ve had the best luck with Nelson Connects - they found me my current role and other great positions that happily worked out for years!"

VP/Controller

Client: Restaurant/Hospitality

"Nelson Connects has continuously provided our company with exceptional service and highly qualified candidates. We have utilized Nelson Connects for both high level Direct Hire positions as well as temporary assignments, and with each position have been given access to a pool of talented people we would otherwise not have access to. Through the years we have developed a strong professional relationship with their staff and can say with confidence that we will continue this relationship for a long, long time."

Client: Wine & Spirits

"Working with Nelson Connects makes my job as an HR Manager so much easier! We recently partnered with them on a search for multiple positions. This was a difficult search as it required the candidates to train in southern California and eventually work at our corporate office in the Bay Area. They coordinated the interviews very quickly with qualified candidates and within a very short turnaround the positions were filled! Nelson Connects does a great job & I would recommend them to anyone that is looking for a professional and mature staffing team."

Human Resources Manager

Client: Manufacturing

"The Nelson Connects team did a great job at understanding our needs and presenting great candidates. They were professional, organized, and timely. I would definitely work with them again!"

Director of Accounting & Finance

Client: Wine and Spirits

"Over the last few years, I have had the opportunity to work with the Nelson Connects team to recruit for several key roles within my Accounting/Finance department.  They were extremely successful in identifying exceptional talent and I was impressed with their level of professionalism and responsiveness.  I would highly recommend working with Nelson Connects for Accounting and Finance recruiting needs at any level."

VP of Winery Operations

"When recruiting for a Senior Pricing Analyst, I reached out to Nelson Connects and engaged their services. I hired a candidate presented to us predominantly because they listened to what I was looking for in a candidate and was able to provide a good match. I was so pleased with the experience that I have continued to reach out to Nelson Connects for additional hiring needs."

VP Market Insights and Global Pricing

"For several years, I’ve been working with Nelson Connects to fill a variety of staffing needs. They consistently offer top notch experience, provide exemplary customer service, and deliver the caliber of candidates that will be successful in our entrepreneurial environment."

Human Resources Manager, SPHR

Client: Retail

"We have enjoyed a long-term relationship with Nelson Connects and have worked with them exclusively to assist us on a variety of recruiting needs. Most recently, I had the opportunity to engage the Finance & Accounting team at Nelson Connects in a highly complex search to identify a new CFO. We have a deeply rooted history in Sonoma County and building a strong team is vital to our continued success.  Not only did the recruiters at Nelson Connects present us with a panel of impressive candidates; they worked diligently to ensure that we had access to the best talent in our industry. I can feel completely confident that I have hired the best person for this role.  I would highly recommend working with Nelson Connects for all your financial recruiting/staffing needs."

CEO & President

Client: Real Estate

"We were growing faster than expected and quickly needed to bring on a CFO specific to our industry.  This was a critical hire for us, and we needed to identify someone in our industry, complete our due diligence and move quickly to meet with appropriate candidates.  Within 3 weeks of our first conversation with Joseph we extended an offer and hired a fantastic CFO. I would strongly recommend working with Joseph and Nelson Connects."

Client: Retail Apparel

"We trust Nelson Connects to help us find seasonal tax professionals. They understand our needs and always do a great job in finding knowledgeable and dependable people. Their tax professionals allow us the ability to meet the demands of increased workload during certain times of the year and provide quality service to our clients."

Client: CPA, Audit and Accounting

"We’re happy to recommend Nelson Connects. They offer top quality service and stand behind their people. From Tax Manager to seasonal tax assembly, Nelson Connects has helped us find the best talent in the area. They understood our busy schedule and worked with us to get the right person for the job."

Firm Administrator

"Their team is responsive, knowledgeable, and professional. We really appreciate their high level of service and follow-through. Even when we have an urgent need, we know they will send us a great employee on time and on budget!"

Employment Specialist

Client: Health Care

"On a scale of 1 to 10, they are a 12! They’re fantastic! They provide outstanding customer service, and they understand the personality and caliber of people who are going to fit in with our organization. They are mindful of my budget and make it feel like a partnership…  I use them exclusively…  they just always get it done."

Director of Human Resources

Client: Wine Industry

"Their people go the extra mile to ensure we have the right people at the right time in the right place."

VP of Human Resources

Client: Food Manufacturing

"They’re fabulous. Nelson Connects is very good at what they do. They are experienced at staffing all levels within a wide variety of organizations. I really like the quality of people we get. When you call into them, they know you. They know what our standards are, and they know that quality always comes first.  I feel that they’re always looking out for our best interests. They want to make sure it’s a good fit and I think their customer services is outstanding."

"I highly recommend Nelson Connects to anyone needing assistance of a staffing professional for the recruiting of an Accounting or Finance position. They have helped me fill positions on numerous occasions… Nelson Connects is an Accounting and Finance staffing firm I trust."

"I would highly recommend Nelson Connects to anyone needing staffing assistance. Not only have they presented us with top quality candidates, but they have found an efficient way to screen a group of candidates without taking very much time out of my day. Most recently they set up back-to-back thirty-minute interviews with five candidates at their office. We had a chance to meet and talk with all five of them, time to compare notes, and pick one or two in bring back for a second more in-depth interview at our office. We also use Nelson Connects for both temporary staffing and market information. They are willing to sit down with us and talk about the market trends and how that will affect my business. With their team, I can feel completely confident that I have been presented with the best candidates."

Director of HR

Client: Energy

"I had the opportunity to work with Nelson Connects when I needed to bring on an Accounting Finance Controller. Our need was unique in that I had to bring someone on quickly with Retail Industry experience. Nelson Connects was quick to respond, and I was very pleased. We made a great hire, and I will continue to seek out their assistance when needed."

HR Director

Client: Manufacturing Company

“I have been working with Nelson Connects for many years now. Their team is an amazing group of talented individuals that know my industry and what type of people I’m looking for. They have always gone above and beyond to provide excellent service. I value their input and enjoy working with the whole team!”

Candidate: Manufacturing & Logistics

“Had barely come to town as a last minute ditch effort for a pivot in life. Found myself at the front door of Nelson Connects speaking with a kind soul (Aimee ), who pointed me in a new direction in which I’ve never seen or heard of before in my life. Months into the project I had a difficult time in my personal life and was in complete amazement when my recruiter went above and beyond to make sure everything will be just fine. I’ve been loving every minute at my new job and hopeful it turns into a career soon.”

Human Resources Professional

Client: Food Manufacturing Company

“I wanted to let you know how great and wonderful Mauricio and Mary are and have been to work with! The teamwork and relationship I’ve built with them for almost the past year has been exceptional. They respond to me timely and are always on top of their game! I appreciate all their hard work in getting our baking team staffed and all the great candidates they have assisted on bringing on to my team and being able to hire them on permanently/directly afterwards. I appreciate Mary and Mauricio so much: their dedication, time and effort they put forth in providing us with our staffing needs. They both go above and beyond and have been a joy to work with. Again, a BIG thank you to Mauricio and Mary and the rest of your team (including Nicole) on this partnership! I look forward to many more years of working with you all. Thank you!”

“Wanted to take a minute to say how much I appreciate working with the Nelson Connects Santa Rosa team! I am retired but still like to work projects so they have put me on multiple assignments at different client sites, they know exactly which projects will work for me. This team is always kind and professional. I also appreciate how detailed they are with providing me all of the information I need for each project I am going to. I highly recommend working with Nelson Connects!”

General Manager

Client: Materials Manufacturing Company

“Nelson Connects, our business partner, has proven to be the most effective source to cover our needs regarding temporary employees. A quick phone call, e-mail, or text is enough to have the Nelson Connects team send people either to be interviewed or already pre-filtered candidates to start as machine operators or clean room employees. We have also hired summer interns though Nelson Connects, which allows us to cover peaks of demand as well as special tasks and short-term projects. Our company and Nelson Connects are both happy to see temporary employees becoming long-term employees.”

“Quiero agradecer a Nelson Connects por ayudarme a conseguir trabajo, en especial a Aimee que con su gratitud sabiendo que mi inglés no es bueno siempre trató  de hacerme sentirme bien, no solo es una empleadora, sabe escuchar, aconseja y eso me motiva. Desde ya muchas gracias por todo. I want to thank Nelson Connects for helping me find a job, especially Aimee because my English is not good and she is always trying to make me feel good, not only as an employee. She knows how to listen, she advises and motivates me. I am very grateful.”

Talent Acquisition Specialist

Client: Glass Manufacturing Company

“In the short time I have been working with Matt and Nelson Connects, I have developed a great working relationship. Matt is very knowledgeable and is very invested in procuring the right candidates for us. He follows up and asks for feedback on all candidates he presents. He has successfully found two great candidates for two different positions for the company. I look forward to continuing my working relationship with Matt.”

“I have been with Nelson Connects for many years and it has been a great way for me to obtain work at different companies. I am currently working at one of those companies for over a year. I am very thankful of all the work opportunities that Nelson Connects has provided me with. It’s being always a nice experience interacting with Nelson Connects team.”

Client: Automotive Glass Distributor

“Matt has been a valuable partner in helping us find rock stars that we have added to our team! He takes the time to understand the qualifications of our positions and our company culture. Not only did Matt vet out candidates, he also found qualified, dynamic people for us to hire in two different departments – Human Resources and Sales. His candidates have hit the ground running and made a positive impact on our business.”

Candidate: Manufacturing & Logistics (Executive Search)

“I have had the opportunity to work with Matt while pursuing an Account Manager position. After an initial interview, Matt acted as a great liaison between me and the hiring company. Through the interview process to the final offer, he constantly kept me updated. I highly recommend his service.”

“I was very pleased with Matt and his attention to detail. He was straight to the point, very knowledgeable, and patient. I have never experienced such service like the one he provided to me in a time of need. Thank you so much Matt, for building a connection and helping me find a new place to expand my career and experience.”

“Being suddenly unemployed can be a tough experience. As a husband with two young children, the thought of being unemployed after a massive layoff  made me think of long, stressful days searching for the next opportunity.  But Matt at Nelson Connects helped me along my journey. Matt was awesome with communication  and gave me confidence a new job was on the horizon. Matt did great prepping me with interview questions and techniques to crush the process. Once it came to the negotiation after an initial job offer, Matt did great communicating with me for what I was looking for and made me feel like I had my own agent working for me on my next big deal. Once done, Matt also checked in after my first week to assure the job was the right fit.  Overall, working with the Nelson Connects team and Matt in particular was a fantastic experience.”

Head of Human Resources

Client: Private Equity Investments Platform

“From the outset of our business relationship, Evan demonstrated professionalism, instinctually understood the firm’s needs and continues to be a valuable resource for future recruiting needs. I have happily and without reservations recommended Evan and Nelson Connects as valuable resources to my colleagues.”

Candidate: Technology

“Can't say enough good things about my time with Nelson Connects. My experience has felt more like family, than co-workers. Every single member of the staff I’ve had the pleasure of interacting with have been caring and compassionate. They have always made sure to make me feel valued and respected, while maintaining a thorough and informative approach. I’m incredibly fortunate to be associated with this team and commend them on their incredible and well-deserved success.”

Systems Administration

“I have confidence when I contact Urvashi and her team at Nelson Connects to fulfill any of our hard-to-fill positions. Recruiting is not only about matching qualifications, it’s also about truly listening and asking the right questions to search for people who are aligned with an organization’s mission and values. Nelson Connects stays engaged and builds relationships as well as pipelines talent who are interested and waiting for the right opportunity. Even on short notice, Nelson Connects is able to search and present people quickly. You can be assured your recruitment needs are also prioritized and within budget. I highly recommend utilizing Nelson Connects as a trusted advisor and resource for all of your hiring needs.”

“Nelson Connects notified me of an opportunity at the top technology company in the U.S. Mike, Todd, and the onboarding team did a great job preparing me and walking me through the process. I highly recommend this team because of their outstanding communication, energy, and professionalism. Currently, I work for my dream company and the whole experience has been incredibly rewarding.”

Client: Software & Services Company

“Kevin has been a pleasure to work with. He is technically strong and always eager to learn new technologies that are relevant to our business. He tries to understand our company, initiatives, and future roadmaps. As a result, we get skillful candidates in a timely manner who are also good culture fits! I enjoy working with Kevin and will continue partnering with him.”

“I've been working with Michelle for over a year and a half and she has helped my land a handful of different positions. Michelle is very professional and I enjoy working with her very much. She’s always helpful when I have any questions and she’s always been able to answer them. She has great communication skills, is very good at what she does, and I would recommend her to any of my friends that are seeking employment.”

People Operations Manager

“I just wanted to sing (not really sing, but you get it) the praises of Kevin. He is in constant communication and shares his roadblocks so that the team knows what is going on. One of our technical hiring managers mentioned they like working with Kevin as he has technical chops and is not just pushing us candidates – he finds us good people. I just wanted you to know how much we value his work and partnership.”

“My experience working with Nelson Connects was one of the better ones in working with a technical recruiter. Evan is very much the real deal and throughout my search process, he was able to keep eyes on the prize on my behalf and ultimately landed me at an amazing company working with an incredible team. A job search can be frustrating and at times, underwhelming. But I can honestly say that working with Evan and Nelson Connects opened my eyes to what is truly possible when a recruiter is focused on placing you somewhere that your talents and skills will be showcased best.”

AVP, Program Strategy & Delivery

Client: Financial Technology

“Working with Kevin has been an entirely positive experience.  We tested Kevin with a few talent acquisition needs which had otherwise stalled. Kevin listened to our needs, quickly produced high-quality leads, and filled our toughest positions. Moreover, Kevin proved his integrity as an honest broker, seeking the best outcome for his candidates while also correctly representing the priorities of our business.”

“In February 2020 I was first contacted by Michelle of Nelson Connects. Michelle not only FULLY reviewed my resume and qualifications, she cared enough to actually listen to express my career goals. She matched me with client companies not only from the technical standpoint, but also in terms of client company culture. I consider myself lucky to have had the pleasure of working with a technical recruiter with such a strong work ethic, professionalism, and determination to find the best opportunities for IT professionals like myself who like her possess strong skills, work ethic, and work with a spirit of excellence. Thank you Michelle!”

Client: Information Technology

“I had the pleasure of working with Evan and Nelson Connects regarding a senior technical leadership role in 2022. In short they were a joy to work with. Evan and the team’s communication throughout the entire process was excellent. They had their finger on the pulse of the volatile market shifts and had an excellent pool of candidates to source from. I would highly recommend them and work with them again.”

“Kendal found me on LinkedIn and asked me to apply for her client's contract job. Throughout the process, Kendal was helpful, friendly, and openly interested in supporting my career strategizing. I am grateful that she matched me so skillfully and followed through with the whole process!”

Client: Autonomous Vehicle Company

“I highly recommend Kevin for your next executive (or other) search. We recently partnered with Kevin and were impressed with his timely follow-up skills as well as his commitment to transparent communication. He really listened to our needs in a candidate and used his scoping abilities to bring us qualified individuals.”

“Michelle has been the best recruiter I've ever had over the last 8 years doing contracting work through various staffing agencies. She has a real talent for being able to match individual skills with what the client is looking for. They are most often longer contracts with good pay which makes it worthwhile for all parties. Michelle is responsive, attentive, and efficient at keeping in touch after long periods of time. I look forward to working with Michelle in the future should the need arise.”

Program Manager

“Nelson Connects and I have been working together for 4 short months, but our partnership has been advantageous to our Contingent Workforce Program's growth so far. My team and I have worked with Urvashi closely, and she is a pleasure to work with when it comes to hard-to-fill reqs, negotiation, market data, and overall suggestions and recommendations she has shared with us.”

“Michelle is an awesome recruiter who has made my IT life a very promising and fruitful experience. … She has gotten jobs that have not only helped my career as far as experience goes, but the jobs have also helped monetarily that I probably wouldn’t have been able to negotiate myself. … I recommended her to two of my previous co-workers, and she is doing an amazing job finding them above market work. … I’ve been able to work with systems and utilize my certifications and knowledge that I’ve received working the various jobs she placed me in that I couldn’t before. … I want to thank her for her work she has done for me. I trust her!”

Vice President, Sales

Client: Spirits Company

“Caitlyn has been an absolute pleasure to work with, and is a total professional. I would recommend her to anyone when looking to meet their hiring needs.”

Candidate: Wine & Spirits

“I applied to a position on LinkedIn that was posted by Nelson Connects (Wine & Spirits). From the start, Nicole was beyond helpful throughout the entire process. She continually checked in, was a major advocate for me during the interview process and was also an influential piece in getting the job. I can't thank Nicole and Nelson Connects enough for playing a pivotal role in my job search and ultimately helping me get the job!”

Client: Cooperage

“I started working with Nicole and Nelson Connects in 2020, and since that time Nelson Connects has filled two critical positions for our organization with valued employees who are still part of our team. We filled both a sales and operational position, so different roles and candidates, and the process was great both times. Hiring the right team members is critical, especially for a smaller, family-owned business like ours, and there is a lot of nuance to evaluation, negotiation, benefits, etc. Nelson Connects guided us through the process and repeatedly presented interesting candidates. I recommend Nelson Connects to industry colleagues looking to fill important roles.”

“If you are hiring for a role or looking to find a job in the wine and spirits industry, Executive Recruiter Caitlyn should be your first call. She is a natural connector with extensive relationships in the industry and loves helping people find their perfect role and ultimate happiness. Caitlyn has a passion for the beverage industry with a progressive career working for restaurants, distributors, and suppliers/importers. This direct experience sets her apart and gives her a competitive edge in knowing what it takes to succeed. Working as an agency recruiter makes her scope national, with new roles opening daily across every business segment, from the winery, operations, finance, sales, marketing, and everything in between.”

Co-Directeur Général

Client: Wine Importer

“As co-owner of  a large wine importer of Bordeaux wines, I have used the services of Nelson Connects for six years and have recruited six people through their platform. I have always been very pleased with their services and professionalism. Lately I have worked with Nicole and recruited two regional managers. The experience was extremely positive, and Nicole has been committed to our project.”

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If a company hires temporary or seasonal employees, will these employees still be eligible for unemployment when their assignment ends?

Maybe. Temporary and seasonal employees may qualify for unemployment benefits at the conclusion of an assignment.

State unemployment insurance laws generally do not disqualify an individual based on his or her classification as a temporary or seasonal worker. Eligibility for unemployment compensation is based on a number of factors, including the duration of employment, the employee's earnings in his or her base period, and the circumstances that led to the separation from employment or reduction in hours. If an employee loses work through no fault of his or her own and there is simply no more work for the employee, this worker may be eligible for benefits, and the employer may or may not be chargeable.

For information on how base periods work, refer to the SHRM Q&A How long must an employee work for an employer before he or she is able to collect unemployment?

Each state unemployment compensation law should be examined to determine the eligibility requirements and any specific exclusions from benefits for temporary or seasonal workers.

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End of Temporary Assignment: What to Do

Are you nearing the end of temporary work assignment? When a temp assignment ends it can start to feel a bit precarious at times. If you have your next assignment lined up you may feel a sense of relief, accomplishment or even a sense that you will miss your current work assignment. All of that is normal and valid. 

At the end of a temporary assignment you may feel pressure and stress. The best thing to do is to make the most of the time you have left on the job. The more prepared you are for the time when a temp assignment ends, the more you will set yourself up for success with your next assignment. 

Temporary assignments are unique experiences. Many workers are accustomed to moving from job to job and it feels like old hat. For other workers , it can be jarring or hindering to move from one job to the next. If you fall into that category you will want to arm yourself with a few tips for the end of temporary assignment periods. 

End on a good note

Make sure your manager knows that you have enjoyed working on the assignment. Stand out from other workers by making it clear that you enjoy your job and take pride in your work. Leaving on a good note when a temp assignment ends is a great way to ensure future call backs or good references. 

Have a reputation as a good coworker

Your coworkers are not your managers, however it is still important to develop your reputation as a solid team member and someone others enjoy working with. Being known as reliable and knowledgeable among your coworkers is a great way to end a temporary assignment.

Update your resume

You may not realize the nuances of the current work assignment you are on, but when you sit down and put pen to paper there are many ways you can update your resume to reflect the work that you have done on your current job assignment. Turning to experienced resume builders is a great way to make sure you have accurately captured the depth of your experience.

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Can I Collect Unemployment After a Temp Job Ends?

Can you collect unemployment if a project ended.

Doing temp work is a common way to make ends meet when you are between jobs. In most states, once you register to work through a temp agency, that agency becomes your employer of record. The agency is responsible for finding you regular job assignments. Unfortunately, there are some things the temp agency may not tell you when it comes to collecting unemployment benefits. For this reason, it's important to educate yourself before accepting a temporary assignment.

Yes, You Can

If the agency fails to find you another assignment, it is possible to collect unemployment benefits after your last assignment ends. You can also collect unemployment while working the temp job, depending upon the amount you are paid for the temp assignment. Most state unemployment security commissions have unemployment benefits calculators that allow you to calculate how much you qualify to receive while working your temp job.

The Determining Factor

There are factors that can prevent you from collecting unemployment benefits, including whether you quit your job. With temp jobs, this test is tricky, because you can be labeled a job quitter and not know it. The secret is that you must continually call the agency to see if temp assignments are available. If you neglect to call daily, the agency can say you quit. As such, make it your duty to call every single day to ask whether a job assignment is available. Keep a paper trail by documenting the date and time you called, as well as the person you spoke with. This documentation comes in handy if the agency tells the unemployment office you failed to call in.

Don't Wait Too Long

Unemployment benefits are calculated based on the amount of wages you earn during the 12 to 15 month period leading up to your unemployment. This period of time is referred to as your “base period.” It's important to keep regular job assignments during the base period. As soon as the assignments become irregular, file for unemployment. If you wait too long, it lowers the amount of money earned in your base period, which may disqualify you from receiving benefits.

Word of Caution

There are instances where an individual may collect unemployment before working a temp job and receive reduced benefits after working a temp job. For instance, you may receive $400 per week before working with the temp agency and only receive $150 per week afterward. That's a major reduction in benefits. To prevent this from happening, only accept temporary job assignments that have compensation comparable to your last steady job. If you take a lower paying job, the wages from that job will be calculated as base period wages. The good news is that the unemployment office only requires you to accept “suitable work.” Suitable work includes job assignments that are not illegal and that have wages equal or comparable to the previous job you lost. If the unemployment office asks why you turned down an assignment, explain how the assignment was “unsuitable.”

More Articles

How Long Does the Company Have After You Quit a Job to Give You the Final Check? →

The Questions That the Unemployment Interviewer Asks →

Can an Employer Fire You for Taking a Leave of Absence? →

• National Employment Law Project: Temp Work & Unemployment Insurance
• ABC 7 News: Temp Job Could Cost You Unemployment Benefits
• The Legal Aid Society: Unemployment Insurance – Temporary Workers

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How do I collect unemployment if my assignment ended but I haven't been fired from the temp agency?

So someone from my temp agency calls me tonight and tells me that my assignment has ended and that I shouldn't show up for work tomorrow (keep in mind I've been on this assignment for 20-21 months). But they say I'm still an employee of their agency. I imagine that the next step for me is to file for unemployment. But I don't know if I'm eligible for unemployment if I haven't technically been fired from the temp agency? I don't know what my unemployment benefits are and I don't know how to check, though I imagine I can look through the website that gives me paystubs or that I sign up for health insurance through. I don't even honestly know if there ARE unemployment benefits. I'm also not sure how the whole health insurance thing works. Since I worked on the 3rd, I think that it lasts through the month.

The last time I was fired I didn't even think about applying for unemployment because it just didn't cross my mind for some reason (I was 23 and living at home). So this is the first time I've really even thought about unemployment.

Anyway, am I basically just screwed?

I can elaborate on the details of why I lost my job as well, but what it boils down to is that the company was looking to reduce costs and decided to end my assignment. The reason that I was given was that "I was not engaged in my job" which is pretty bullshit since there was no metric-keeping and hypocrisy was abundant in the lab, but if that translates to having unprofessional attitude (let's face it - I was unhappy at my job) then I can't argue on that. It is really strange to me that this happens THE DAY I call EAP for mental health services. But I am pretty sure that is coincidental. Also somewhat relevant is that I had told my temp agency rep person that I was dealing with depression during my second "intervention"-type meeting for being late to work and had never mentioned it before because I'd been dealing with it this whole time, but I wouldn't win that case either because I haven't really been following up with my GP on that. (I had mentioned it as a medical history thing moreso than a current thing I think.) (Also after that intervention I was never late.) They were trying to find a way to fire me and they did. That's the long story short.

TL;DR: I'd like to file for unemployment but am confused about whether I'm even eligible if I still technically have an employer that is not paying me (because I am not actually doing work). What do I do?

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Are there any limits to how long I can keep a “temp”?

Sara bennett.

• June 15, 2024

Myths.  Truths.  Misconceptions About “Length of Assignment”

Conversations about how long a temporary assignment can last have been around for a long time.  In December 2000, the now infamous Microsoft 97 million $ settlement  awarded 97 million dollars to temporary workers who were re-classified as core (common law) employees instead of as temporary employees as intended by Microsoft.  This re-classification requirement resulted in 8-12,000 “temps” working at Microsoft becoming “benefit eligible” and resulted in a pretty hefty financial obligation even for a company like Microsoft.

Unfortunately  this settlement catapulted the issue of assignment length into a confusing period for companies who were large users of temporary employees.   Based on some common misunderstandings of what created the MS settlement,  many employers created internal policies that limited the length of time an employee could be a “temp” believing that by doing so they were minimizing their exposure to “re-classification” issues.

Even the American Staffing Association (ASA) weighed  in on the issue by taking up the concerns of both the employer and their interim employees who were often negatively impacted by an arbitrary assignment ending.  In a series of white papers, ASA challenged  the employer community regarding their assignment limit policies claiming  that “the length of a temporary assignment” is only one, of multiple factors, important to establishing the employee- employer status and does not in and of itself mitigate the risk of misclassification.  They wisely noted that other components of the employee/employer relationship were, in fact, equally if not more important.     

What is the status of the length of assignment issue today?

As the dust settled in the early 2000s it became clear that the truth surrounding the MS settlement was far different from the initial headlines.    But the damage had been done.  Even though the arguments of the ASA prevailed, temporary employees are still asking how long an employer can keep them on in a temporary role without breaking the law.

What can employers do to protect themselves from unexpected liabilities related to how they use and manage temps?

 #1.  The easiest and most bullet proof decision is to use third party staffing agencies to employee all non-core, interim, contract or temporary employees rather than hiring them directly.

Many analysts believe that had MS obtained all of their temporary workers at the time of the lawsuit thru a third party employer, instead of hiring many of their temporary workers directly classified as 1099s, it is possible that some of the mis-classification claims could have been avoided.

Most companies have policies that forbid hiring managers from hiring a worker classified as a 1099…..requiring them to use a staffing agency to on board and pay them as interim workers even when those workers were sourced internally, not by the staffing agency per se. They do this to avoid the scenario where an employer classifies  a worker as a 1099 – “self employed”- and the IRS later refutes that claim, subjecting the employer to back taxes, fines, and penalties.   Employers want the peace of mind that comes from  knowing that the  applicable wages, payroll taxes and benefits costs are being calculated and paid by an employer other than themselves.

Many local staffing companies, PACE included, have created low cost “payroll service” packages for employers who have a need for third party employer services for interim workers they have recruited directly.  (See PACE’s Employer of Record service option) 

#2.  Write your key benefit plans to specifically exclude third party (i.e. staffing firm) employees. 

In 1999, Microsoft didn’t have any carve outs in their benefit contracts, and had to learn the hard way that easiest way to protect themselves from unanticipated benefit costs is to specifically exclude workers who are the employees of third party employers.

#3.   Include information about how to manage workers from third party employers as part of supervisory training.   

The IRS is still using specific tests to determine the employer relationship.  To make sure that the employer responsibility stays with the staffing agency and doesn’t  default back to the employer under audit, many employers are training their supervisors on temp management 101…

• To limit their communications with temporary employees on any issue related to pay, length of assignment, benefit eligibility, employment status or work schedules, etc.
• To allow,  and in some cases require,  representatives from their staffing vendors to be on site, communicating directly with their employees,  as needed.
• To provide feedback on performance thru the employee’s staffing vendors, not directly.

If you are an employer and would like some training for your supervisors on how to legally and operationally optimize the employer services of a third party staffing agency, give us a call at 425-637-3312!

#4.  Make sure your staffing agency provides you with a contract or written agreement that spells out their duties as “employer”.  These agreements typically include the staffing agencies responsibility to….

• Recruit, screen and evaluate employees to be placed on assignment
• Determine employee pay rates, benefits and expense reimbursements
• Hire, fire, and assign employees
• Handle employee complaints and concerns
• Pay worker, calculate and pay taxes, and distribute pay check

Getting these types of agreements or contracts in writing, makes it clear who is responsible to act as the “employer of record”.  It also can protects employers from unexpected liabilities resulting from workplace accidents or claims of discrimination.

While most of the legal concerns regarding how long a temp can remain on assignment have dissipated, there are still situations where internal “length of assignment” policies might be needed. 

For example….  .

You may want to limit length of assignment in order to protect your Intellectual Property…   

In 2016, Microsoft established a new set of “assignment limit” rules, based not on the risk of mis- classification or co-employment, but on their concerns about the integrity and security of their intellectual property.  Because they were uncomfortable allowing a temporary or contract worker to have long-term access to their proprietary information and systems,  they decided to place limits on the number of months an employee could access their systems without a break in service.  They decided  that after 18 months a temporary or contract worker needed to be removed from their assignment, forcing an arbitrary lay off of any contractors reaching that benchmark.

We are yet to see if MS can effectively enforce this policy without exception as we know first hand the negative impact of losing a valued worker – even if the are not an employee hired directly.

You may want to limit length of assignment in order to optimize the productivity and morale of your temporary employees… 

While higher wage temporary or contract workers  tend to prefer “longer term assignments”, many lower wage temporary workers consider themselves negatively impacted when asked to remain as temporary employees for long periods of time without being converted to a regular hire.   The impact to productivity and morale  is often highly visible when temporary workers are asked to work side by side core employees doing the same or similar work.

For similar reasons, in those situations where an employer regularly hires members of its temporary workforce, there is risk attached to keeping the temporary employee in the workforce once they know they will not be hired.

Many of our clients who regularly hire our temporary employees have rules whereby an employee will either be hired or removed from their assignment after a defined period.

Structured policies about how long an employee can work in your environment as a “temp” minimize the risk of discrimination….

The longer a “temp” is in your workforce, and the fewer policies you have to guide decisions your managers use to either end or extend assignments, the more opportunity there is for claims of “disparate treatment”.

Making “length of assignment” a matter of company policy rather than a decision left up to the discretion of an individual manager or supervisor,  mitigates the risk of an uninvited claim of disparate treatment.   At the same time, an across the board “length of assignment” policy, can reduce the resources manager’s have available to them to achieve important business goals.   

In Summary….

PACE  regularly provides employees for assignments intended to last as little as two days to multiple years and does so seamlessly, based on the employer’s internal policies and our assessment of our employee’s motivations for working.  While we will provide information on the operational risks an employer might face by either limiting or extending assignment lengths, in the end, it is a decision that is made by both the employer and the employee.  In reality, once the original agreement re: “length of assignment” has been satisfied, an employer can still provide an employee with the opportunity to extend their assignment and the employee can then decide if they want to accept the employer’s offer.  The law plays no role in those decisions for either party,  although a company’s internal policies might.   

———————————

If you’d like help with your next temporary staffing project or to learn more about how optimize your use of temporary employees,  give our Partner Services and Solutions a call at 425-637-3312 or e mail us at [email protected]

PACE Staffing Network is one of the Puget Sound’s premier staffing /recruiting agencies and has been helping Northwest employers find and hire employees based on the “right fit” for over 45 years.

A  5 time winner of the coveted “Best in Staffing” designation , PACE is ranked in the top 2% of staffing agencies nationwide based on annual surveys of customer satisfaction.

PACE services include temporary and contract staffing, temp to hire auditions , direct hire professional recruiting services , Employer of Record (payroll) services , and a large menu of candidate assessment services our clients can purchase a la carte.

To learn more about how partnering with PACE will make a difference to how you find and hire employees,  contact our Partner Services and Solutions team at 425-637-3312, e mail us at [email protected] or visit our website at www. pacestaffing.com/employers.

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The Pros and Cons of Using a Staffing Agency to Find Employment

Published: Mar 20, 2024 By Kate Johanns

The pathway to a full-time job doesn’t always mean sending out dozens of resumes and sweating through in-person interviews. A staffing agency acts as a matchmaker between employers and employees. An employer contacts the agency to ask for a specific type of worker to fill a temporary need, and the staffing agency finds potential candidates for the employer to choose from. The employer pays the agency a fee to find the right person—generally in the form of a percentage of the agency’s annual hourly rate, the rest of which goes to the temp worker.

According to the American Staffing Association, nearly three million Americans work as contractors and temporary employees each week. For individuals seeking work, signing up with a staffing agency offers pros and cons. Here are some considerations if you want to work with a staffing agency in your next job search.

Pro: You can try on different jobs with less commitment

One of the biggest pluses to working for a staffing agency is that you have a chance to try on an employer or work in a specific industry before taking a permanent position. Plus, you have some additional control over your schedule, with the chance to take breaks between assignments. (Twenty percent of staffing agency workers cite schedule flexibility as a reason for choosing temporary/contract work, per the American Staffing Association.)

Not every opportunity is a "temp-to-hire” position, but companies often like to hire temporary employees for full-time positions because they’re already a known commodity and will require less training. These factors typically make any sort of fee owed to the staffing agency for hiring a temp full-time worth it.

Con: You have less stability

Temporary positions are just that—temporary. In most cases, you won’t be hired as a permanent employee, and no matter how much you love your assignment, it will have an end date. You also likely won’t have the benefit of employee coaching and chances to improve your work. If the employer doesn’t feel like the arrangement is working out, the staffing agency will simply be instructed to send someone else, and you’ll be back on the bench.

Pro: You have a paycheck during your job hunt

This may be the biggest pro. You can keep money coming in during your job hunt, as well as gain valuable experience. In some instances, while working for certain staffing agencies, you may even have access to employee benefits such as health insurance. The American Staffing Association reports that most staffing employees (73 percent) work full time, which is comparable to the overall workforce (75 percent), and that six in 10 staffing employees (64 percent) work for a staffing agency while between jobs or job hunting.

Tip: Be sure to understand the requirements for ending your staffing agency work should you accept a full-time position.

Con: You may face stiff competition for placement

Let’s see: You’re earning a paycheck, and someone else is trying to find you work. That’s overall a good deal—which is why you may face stiff competition among the other candidates your staffing agency has in its pool. You’ll need to make sure your resume is in good condition and stay up to date on your interviewing skills so you emerge as the top candidate in the hiring company’s eyes.

Pro and Con: The agency’s job is to place candidates

The fact that the staffing agency only gets paid for the candidates it places is both a pro and a con. On the one hand, signing with a staffing agency means that someone will be actively seeking work for you. You may even have access to resume reviews and other job-seeking resources that will make you a more desirable candidate. On the other hand, the agency’s No. 1 priority is placing you so the agency gets paid, which means the agency may overlook red flags about a position.

The bottom line is this: You’re the only one whose top priority is you. In the right situation, signing with a staffing agency could be in your best interests.

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Calculating Temporary Staffing Turnover Rates – It’s Complicated

• September 25, 2013

Staffing companies like Barton Staffing Solutions are regularly asked: “W hat is your annual turnover rate? ” Calculating temporary staffing turnover – it’s complicated is a great way to think of it. The fact is that numbers temporary staffing agencies provide may not have any meaning.

Remember, by definition, temporary employees turnover – they are temporary. Sure, some companies use temporary staffing as a semi-permanent workforce and turnover is close to full-time turnover in terms of an annual rate. But many, if not most assignments are not of this longer assignment duration. We know this because the American Staffing Association (ASA) provides metrics for average tenure for temporary employees. For 2012, that tenure was about 15 weeks .

The ASA and others generally calculate temporary staff turnover by the following formula based on annual numbers:

(Total Number of W-2s Issued) / (Average Daily Number of Temp Employees) * 100 = Turnover %

The trend over time can be found in the ASA Fact Sheet: Staffing Employee Turnover and Tenure in 2012 . From an industry perspective, this may provide some meaningful metrics. However, some clients seek a number that has relative meaning to permanent or full-time employee turnover rates. Wikipedia has the formula for calculating full-time employee turnover:

((Total Employees Separated) / (((Total Employees at Year Start) + (Total at Year End)) / 2)) * 100 = Turnover %

Why Calculate Turnover?

Turnover in general is important to assess as it is a metric of operational costs in terms of human resources and overall enterprise requirements planning (ERP). In addition to the obvious business costs to productivity and quality , the common organizational development costs include: separation costs, hiring costs, rehiring costs, training costs, and retraining costs .  Obviously, in roles where these costs are high, retention is critical, and many companies put permanent employees in these roles.

These costs also apply to temporary staffing. But in the case of temporary staffing, the costs are relative to the duration of the temporary employment assignment.  Recall the ASA tenure for temporary employees is 15 weeks for 2012!

Imagine how skewed a temporary staffing firm’s turnover rate will be if they have many employees in assignments that last only a few weeks, or less, over the course of the year. Some call these seasonal factors ; while it is really just the nature of temporary jobs . Fundamentally, temporary assignments are not permanent, and don’t lend themselves to a meaningful annual-based calculation metric that will help a company manage and continually improve its operations.

A Better Indicator for Temporary Staffing Turnover

Barton Staffing Solutions clients are learning that a better indicator of turnover for temporary staffing firms is the specific number of employees that leave or are separated before their temporary assignment is over. This is a better turnover metric because this is what incurs the costs noted above in terms of separation , rehiring and retraining costs . In the end, that is the cost that firms hiring temporary workforces need to minimize as they use temporary employees for tuning their firm’s operational efficiency.

The new metric to ask your temporary staffing firm to share with you is: “ The average number of employees that leave an assignment before the assignment is over. ” Every temporary assignment has a duration. If it is extended, it’s a new assignment. This number should have more parity with overall full-time turnover and has more meaning to finance and operations in running a business.

The new formula is a little more tricky to calculate, but with modern front and back office software, any temporary staffing firm should be able to calculate this.  The formula:

(Total Annual Assignments Vacated Before End) / (Total Annual of Job Assignments) * 100 = Turnover

For each of these, both the client and the temporary staffing agency incur costs to replace the employee. That is the fundamental cost connection to a firm’s finance and operations objectives in parity with full time turnover costs.

Consider this example where a temporary staffing agency had employees in various temporary assignments ranging from 1 week to 3 months to 1 year in duration. The firm calculated their turnover rate based on the following numbers.

• 1000 W-2s issued at end of year.
• 250 average daily employees in assignments.
• 250 employees performed well, started and completed their assignments.
• 750 employee assignments resulted in separations from assignments prematurely.

Assignment duration for the purposes of comparison calculation using the Barton Staffing Solutions Formula.

• Continue to expand on the example of 1000 W-2’s and 250 average daily employees in assignments.
• Consider 50 assignments for each of the following durations.
• Temporary associates finish one assignment and immediately go onto another assignment.
• New associates added to the total W-2 count of 1000 would only be introduced when true turnover occurred because an associate did not complete the assignment.
• 50 assignments with duration of 1 week, resulted in 2600 1 week long assignments for this agency. (2600 = 50 assignments * 52 weeks in a year)
• 50 assignments with duration of 1 month, resulted in 600 1 month long assignments for this agency. (600 = 50 assignments * 12 months in a year)
• 50 assignments with duration of 1 quarter, resulted in 200 1 quarter (3 month) long assignments for this agency. (200 = 50 assignments * 4quarters in a year)
• 50 assignments with duration of 1 half year, resulted in 100 1/2 year (6 month) long assignments for this agency. (100 = 50 assignments * 2 halves of a year)
• 50 assignments with duration of 1 year. resulted in 50 full year long assignments for this agency. (50 = 50 assignments * 1 full year).
• ((50 * 52wks) + (50 * 12mos) + (50 * 4qtrs) + (50 * 2) + (50 * 1)) = 3550
• Or, from the assignment duration above: (2600 + 600 + 200 + 100 + 50) = 3550

Using the generalized  ASA calculation , the turnover rate is:

(1000 total number of W-2s issued) / (250 average number of employees) * 100 = 400% Turnover

It does not matter in the ASA calculation whether a temporary employee leaves an assignment because he was terminated for poor performance, or because the employee found a better job for more pay.  These two causes are very different, but both result in the same operational and production cost to the firm and the temporary staffing agency to replace the employee in order to complete the assignment.  Assignment duration and successful completion is not considered in this method.

Using Wikipedia’s formula , the turnover rate is:

((750 employees separated prematurely) / ((250 employees at year start + 250 at year end) / 2)) * 100 = 300% Turnover

Like the ASA method, the Wikipedia method only works for full-time employees in an organization and make the assumption that all jobs have duration of an entire year, and longer. Assignment duration and successful completion is not considered in this method.

Using the Barton Staffing Better Indicator turnover calculation realistically quantifies per-employee operational cost as a result of turnover:

(750 employees separated pre-assignment end) / (3550 total job assignments) * 100 = 21% Turnover

This new calculation makes the most sense as it shows that of the total 3550 temporary assignments, only 21% incurred the replacement costs – or the negative aspect of turnover that companies want to avoid .  This is much more realistic for the aggregate industry average for turnover calculated for all industries.  This method considers assignment duration, and the successful completion of that assignment.

The Society for Human Resource Management (SHRM) reported that the average turnover rate for all industries is 15% with specific industry turnover ranging on the low side of 8% to the high side of 35%. Our new method is a more meaningful indicator of incurred operational costs than 400%, in the ASA calculation or 300% in the Wikipedia formula.

Barton Staffing Solutions can help you make sense of the hype some agencies attach to these numbers. We are happy to sit down and discuss with your VP of Human Resources, CFO and COO how these numbers relate to full-time turnover rates in terms of operational cost. Give us a call now.

As you look closer into the numbers your temporary agencies give you for turnover, dig deeper and really understand how these numbers will affect your operational costs and the bottom line. Generally, look for temporary employees that will finish the assignment they started based on the time required and the parameters you have in your human resources competency model.

Our next blog will be on factors that affect turnover.

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