Staffing Employment Practices Liability Insurance
From Fortune 500 companies to small local firms, they all rely upon staffing firms for their business needs. As a staffing firm, when you introduce your employee to another workplace there are inherent risks. As the employer of record you are responsible for their safety – and that extends to employment-related practice matters. Add to this, the fact that today’s environment has been further complicated by updated standards that are difficult to interpret, staffing firms face even more exposure to potential claims.
Case in point: Employees may be nominally employed by a staffing firm (which generally recruits them, places them, signs their paycheck, and provides them with benefits), but they actually work for a contracting employer that relies upon the employee’s labor, provides supervision, and sets the terms, location, and duration of employment. Under the new standard set by the National Labor Relations Board (NLRB), there is a strong possibility that these employees are economically dependent on the contracting employer and would be jointly employed by both their “actual” employer and the contracting employer.