The Dark Side of Agencies: Avoiding “Black Hat” Staffing

The Dark Side of Agencies Avoiding “Black Hat” StaffingThe American Staffing Association’s “Code of Ethics” is a strict list of conditions that staffing agencies are required to adhere to. Although most may seem like common sense to the traditional ethical business-minded individual, there have been recent reports of agencies that go against these morals and ethics, resulting in Staffing Employment Practices Liability concerns. The following are common ways in which the “black hat” staffing agencies are tarnishing their reputations and violate the code of ethics.

Hiring Illegals- While filling some positions can be difficult, particularly low paying, physical jobs, “black hat” agencies have employed illegal practices to fill these roles. Rather than E-verifying all government issued documents and ensuring their authenticity, these agencies are turning a blind eye and failing to notify clients of their indiscretion.

Discrimination- These agencies have been known to staff companies with discrimination against race, gender, etc. Even if a client makes specific requests on who they want working for their company, staffing agencies are bound to comply with fair and legal employment practices, free of discrimination.

Failing to Pay Taxes- This should be a given, but these “black hat’ staffers have been caught committing tax fraud and sent to prison.

They Lack Concern for Safety- Although the Code of Ethics clearly lays out regulations for agencies to promote workplace safety, not all of them abide by the rules. By letting safety fall by the wayside, these agencies are creating a larger margin for employee harm. A safety walk-through, at the very least, should be a standard practice. According to Staffing Talk’s Scott Morefield, screening out some clients because of this may cost a few bucks in the short-term, but it will be far more profitable over the long haul not to have that gigantic comp claim or OSHA investigation to manage.

They Don’t Verify References- Although this may not seem like a blatant disregard for morals, the code of ethics requires references to be verified. When black hat agencies bypass this step, they do a disservice to themselves, their business, and their clients.

At World Wide Specialty Programs, we specialize in staffing insurance solutions. Our packages include protection from the broad scope of risks your agency might face, including employment practices, crime, and other professional liability coverages. We invite you to learn more by contacting us today at (877) 256-0468.