Overview: Temporary employees go by a variety of names: contract employees; seasonal hires; interim employees; casual staff; freelancers; contingent employees; or, simply, temps. Temporary employees may work full time or part time. In addition, temporary employees may work for more than one employer at a time, resulting in a joint employment or co-employment relationship.
Recordkeeping and regulatory requirements may vary depending on an employer's relationship to the temporary employee, and on whether a joint employment relationship exists. In addition, certain temporary workers may need specific visas or work permits, especially when providing seasonal agricultural services. As with any employee compensation situation, fines and penalties await an employer that misclassifies a temporary worker or that fails to accurately record and pay any hours worked.
Trends: Temporary employees may be eligible for health care cafeteria plans and other benefits under a contingent employment arrangement. Employers should stay abreast of any changes in benefits requirements due to the implementation of Affordable Care Act (ACA) provisions in the coming months.
Author: Marta Moakley, JD, Legal Editor
This How To details the steps a prudent employer should take when managing contingent or temporary workers.
One of the most challenging aspects of staffing a productive and profitable organization concerns striking a balance between employee compensation costs and fulfilling client expectations. Often, an employer strikes this balance by increasing staff on a seasonal basis - especially in industries such as hospitality or retail.
As mandated by the Illinois Department of Labor, all Illinois day and temporary labor service agencies must post the Illinois Day and Temporary Labor Services Act Poster.
HR guidance on managing temporary employees.