Temp Staffing Insurance: CA Businesses Face New Liability

Temp Staffing Insurance CA Businesses Face New Liability

Temp Staffing Insurance: CA Businesses Face New Liability

In another attempt to improve worker’s rights, last month the California legislature passed a bill that could have significant impacts on the staffing industry and those they do business with. The bill, which is currently awaiting Governor Jerry Brown’s signature to become law, will effectively hold California businesses legally responsible if their temp agencies or partnering subcontractors violate employment practice laws and regulations. The law is designed to prevent staffing agencies and subcontractors from violating wage and workplace safety laws in order to lower costs to compete for contracts or to fulfill a client’s illegal staffing preferences.

Labor officials across the country are expressing concern about the rapid growth of the temporary staffing industry and subcontracting trend in the wake of the recession. While business is booming for staffing professionals, the added competition has created controversy in many areas. Earlier this year, concerns surfaced about the treatment of California’s temporary workers after an investigation by public interest journalists ProPublica into a wage dispute which found temporary workers were being poorly protected and undercompensated.

Opposition to the bill has been strong from the California Chamber of Commerce and industry groups who claim that the bill will subject businesses to heavy fines for circumstances which may be out of their control. The final version of the bill offers a number of exemptions for small businesses. Those specifically named include homeowners, highly-paid tech workers, trucking and cable companies in most circumstances, businesses with fewer than 25 employees, and companies that don’t employ more than five temp workers at a time.

If passed, the bill will likely increase the pressure temporary staffing agencies and subcontractors face to compete for and retain clients. Faced with mounting legislation and increased competition, it can be tricky for staffing professionals to navigate the ever changing risk exposures they face.

At World Wide Specialty Programs we understand the unique and volatile nature of the temporary staffing industry. That’s why we specialize in ensuring that staffing industry members attain the coverage they need to succeed. We proudly offer a comprehensive portfolio of temp staffing insurance solutions to help agents secure everything from EPL to professional liability coverage for their clients. Give our temp staffing insurance specialists a call today at (877) 256-0468 to learn more about all our staffing agency solutions.

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