With temporary staffing centers, there are several moving parts to both management and employment practices that have the potential to cause confusion. As a company contracts with an agency for temporary labor assistance, the employee hired to fill the role reports directly to the company in need but is legally the responsibility of the temp agency. When accidents or injuries occur, the temp agency is the party responsible for addressing workers’ compensation claims. While the original company in need may have general liability insurance that can pay for damage to its business property, there should be a staffing agency worker’s comp insurance plan in place to address the temp employee.
Coverage Extension Requirements
The staffing agency, provided it falls under the guidelines of the state or federal regulations, is required to provide workers comp coverage to its internal employees, but it must also be extended to the employees that are sent out to external jobs. The areas of coverage include:
- Medical bills for injury treatment
- Medical costs for rehab or other therapy needs
- Job protection
- Disability payments
As advised on https://www.wwspi.com/, staffing agencies should take great care in securing a comprehensive policy that addresses the unique risks of their industry. They should also keep thorough documentation of individuals and any aspects of a medical report that deal with an on-the-job injury.