Hiring temporary employees can provide many benefits. Having temporary workers reduces labor costs. In a financial management course, you may have learned how this could benefit a business financially. They can keep businesses on their feet during any unexpected permanent employee absences. On top of that, hiring temporary employees allows you to assess them as potential full-time employees. As a human resources manager, you may like the idea of hiring temporary workers for these reasons. However, you must also take note of the legal factors. Here, you will uncover how to keep hiring temporary employees legal.
Understand Workers Compensation Laws
The mistake of overlooking workers compensation laws for temporary employees can be fatal. When a temporary employee legally deserves workers compensation insurance, your company must provide that employee with it. If they are not provided with workers compensation insurance, they have the right to sue. You must look into whether your temporary employees’ workers compensation insurance is supposed to be provided by you. In certain cases, the agencies the workers are contracted through are responsible for providing the insurance. Understand where you stand when hiring temporary employees in order to prevent any lawsuits.
Consider Entitlement To Employee Benefits
Temporary employees may become entitled to the same benefits of your regular employees. This usually occurs when temporary workers have been working for the same company for over three months. Such benefits include medical insurance and enrollment into retirement plans. Certain retirement plan entitlements are based on the number of hours worked over a period of time. You may not wish to provide your temporary workers with the same employee benefits provided to your permanent employees. Wellness benefits should not be overlooked for temporary workers. When hiring temporary employees, consider the time periods and hours that will entitle the temporary workers to certain employee benefits.
Avoid Misclassification Of Temps
The misclassification of temporary workers is another commonly made mistake. You must ensure that you do not treat your temporary workers as full-time employees. Create a strict set of purposes and a defined amount of time for your temporary employees. Determine restrictions such as the right to assign more jobs and payment method options. Consider reviewing how to write a contract to ensure that this is done properly. Avoid misclassifying your temps from the beginning of the hiring process to remain legal.
Apply Sexual Harassment And Discrimination Rights
You must understand that your temporary employees have the same sexual harassment and discrimination rights as your permanent employees. If a permanent employee is sexually harassed during work, you must legally handle the matter in an appropriate matter. In the case of a temporary employee being sexually harassed while working for your company, you must legally handle the matter with the same appropriateness and urgency. The same goes for any discriminating comments or threats. Make sure this is clear to you and the entire business when hiring temporary employees.
Check Your State’s Unemployment Laws
Unemployment laws vary by state. Before hiring temporary employees, look into your state’s unemployment laws. Certain states don’t require unemployment benefits for temps working a short amount of time. Other states, however, do require such benefits. Misreading your state’s unemployment laws is another mistake that could cause your business a lawsuit. Ensure that this doesn’t happen by carefully reading the laws prior to hiring temporary employees.
In order to reap the benefits temporary employees offer companies, you must hire them under legal circumstances. Understand the workers compensation laws to avoid being sued. Consider the benefits your potential hires would be entitled to. Avoid the misclassification of temporary employees. Ensure that you can provide them with the same sexual harassment and discrimination rights as your other employees. Last but not least, check your state’s unemployment laws to ensure that you are able to comply. Consider these factors to ensure that you’re hiring temporary employees legally.