Roofing companies grappling with a shortage of workers may turn to temporary staffing agencies for workers.
Companies should make sure that the contract between their company and the staffing agency with whom they do business specifically states that the staffing agency, and not the company, is the employer. The contract should also state that the staffing agency agrees to comply with all applicable federal, state and local laws and will be responsible for any violations of law.
Even with these protective provisions in place, however, the company may still face liability for violations of numerous employment-related laws, including wage and hour and anti-discrimination laws, as a joint employer. Generally speaking, joint employment exists where the company exercises certain control over the staffing agency employees. Given this potential liability, the company’s contract with the staffing agency should provide that the agency will defend and indemnify the company against all claims, losses and liabilities arising out of the staffing agency’s breach of any of the provisions in the agreement. The contract should also require the staffing agency to have appropriate insurance (e.g. commercial general liability, errors and omissions, and employment practices liability insurance) and to name the company as an additional insured on the policies.
To best protect your company, you should consult with legal counsel before entering into any staffing agency agreement.
This post was written by Rachel Felton.