I recently spoke with several contract workers to see how they liked contingent work, how client relationships were working, and what they thought of their staffing companies.
One contingent worker was very upset with his staffing company. If you read below, you will see that his treatment is likely to result in some unexpected consequences for the staffing firm.
Question: How many staffing firms have you worked for?
Answer: Just one.
Q: How has it been?
A: I’ve had a horrible experience with my staffing company, which has done a plethora of illegal things.
We are employees of the staffing company, but the company has falsely classified us as independent contractors to avoid paying payroll taxes and [therefore] they make us [the temps] pay those payroll taxes instead.
Q: That does sound like a classic example of misclassification. What are some other examples of their dealings with you?
A: When we first started on Oct. 13th, we signed some paperwork that said N45 [without knowing what it stood for]. What we found out right after starting that it meant we wouldn’t be paid for 45 days, until around Thanksgiving! Very tricky! After much protesting, we got the waiting period down to N15.
We continued to get yanked around. Despite the fact that we worked from Oct. 13-31, at the end of the month we were only paid for the first two days we worked, Oct. 13 and Oct. 14. I didn’t get a real first paycheck until a month later – Nov. 16 - and even then it was only for two weeks pay instead of a month’s worth of pay. (We are told we’ll get the remaining two weeks pay after the project is over.)
Working basically for free for an entire month was awful and I for one was wondering if it was a scam.
Q: What else happened?
A: It gets worse. We have one person in our group who joined us late, in early December, to replace someone who was fired. This guy went two full months without pay! Yes, two months of working full-time every day and no pay! Again, completely illegal.
Q: This staffing firm is supplying contract staff to a major tech company, correct?
A: Yes.
Q: And is saying that it’s the employer of record?
A: Yes.
Q: Scary, for everyone: the client, the staffing firm, and the contract workers. What else?
A: Well, this is the first company for which I have ever worked (and probably one of few companies in the country) that doesn’t have direct deposit. We have been given two choices: a check or wire transfer.
I decided to go with a wire transfer. My bank charges $15 for each wire transfer. I have worked with my bank to reduce the fees, and it has reduced some of the fees, not all, and now my bank won’t do it anymore. It makes me angry, I shouldn’t have to pay to be paid.
I am thinking of switching to a check, but it is taking people who receive checks an extra week in the mail, so I would be going at least three weeks without being paid.
Q: Wow. That’s certainly putting people who work paycheck to paycheck between a rock and a hard place. Have you or your group taken any steps besides revolting against the N45?
A: No, I need the job. But I want to report all of these illegal practices to the IRS, the Better Business Bureau and other places. I also plan to go on Yelp and tell EVERYONE TO NEVER UNDER ANY CIRCUMSTANCES [emphasis his] work with this company. And I am going to go and do it, but it’s best if I wait until the job is over.
= = = = =
I told the contract worker that I was very sorry for his situation. Here you have duplicity, shady dealings, and exploitation all rolled into one.
You know, after being in the staffing industry for so long, and meeting so many great and professional people, I am saddened and upset that these types of business practices are still so common. The ASA has for years tried to raise the image of the industry, but it’s examples like this that make the average person think of staffing as nothing but a scam.
These are the stories that end up getting covered in the mainstream press.
{ 11 comments… read them below or add one }
Wow. Staff On Site is a multi-state, family owned staffing company. Our employees are our “commodity”. Without them, there is no company. We take payroll very seriously and in the unlikely event someone’s paycheck is incorrect, several people “jump” and don’t sit down until the check is correct. We offer direct deposit, payed holidays, paid week vacation (not billed to the client) and above all, medical benefits are offered. After reading this article, I understand where some of the horrifying questions come from when I’m giving seminars. People ask me “How much of my paycheck do you guys keep?” and other crazy things. Now I know why I get asked those quesions. Candidates and employees need to know, they don’t have to put up with any such behavior and agencies carrying out such practices can be turned in and fined heavily.
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Our Staffing Agency is quite young at heart and we are still growing. I read this and thought to myself how could we (Temporary and Staffing Agencies) allow this to happen. We need to keep our industry clean and professional and not allow our industry partners and competitors the opportunity to commit such behavior. These negative practices and companies need to be ostracized.
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“These are the stories that end up getting covered in the mainstream press.”
And, evidently well beyond the mainstream press.
“I am saddened and upset that these types of business practices are still so common.”
I don’t actually see anything “so common” at all. You covered one company who behaved in such an unethical and illegal manner.
As you said: “You know, after being in the staffing industry for so long, and meeting so many great and professional people,”
You are correct. And, there is a lot to write about in all of that.
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Not as common as you may think Jeff but you raise a good point! The industry image needs strengthened and it is up to US in the industry to share the positives of the staffing industry and the companies within it. That’s what has grabbed me about Staffing Talk. It is real. Good. Bad. All staffing. We have to demonstrate within the industry that our employees matter, business relationships matter and staffing is a viable business resource. We are now abusive cow hearders like media and unions would love people to think but we have to show in digital and physical format.
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Not* we are not.
I think we have a long way as far as image is concerned with unions being the biggest mudslingers to the industry most likely because they are threatened. Business has out grown unions and have grown into staffing.
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Although this might be shady, is this kind of thing that uncommon when you are a contractor? As a contractor, you are required to pay the taxes, correct? If they signed the N45 document, then blame yourself for that one. I don’t like what the staffing company is doing at all, but is any of it acually illegal?
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u want mudslinging?
when i was a teen in sacramento where my Dad had his temp business, the Sacramento Bee ran a front page article about how the state government ‘wasted money’ by using his services, extracting (if you can imagine) a margin on top of what the workers were paid!!!. The horror. This was for about 20 total hours of work with maybe a markup of 35-40%.
As long as the Left controls the major media which is not something that is going to change anytime soon, free enterprise will continue to be a dirty word.
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James, you are right. We have a responsibility in the industry to demonstrate the strengths of the industry and pride in our jobs. I’m sure many would agree that the reason they continue to work in staffing is because they feel like they’re making a difference, helping find work for people and working with businesses to offer flexibility without the liability and responsibility of hiring someone on directly, full time. Many businesses use staffing as a way to screen employees and many get hired into full time employment after their probationary period. Business has changed a lot over the years and temporary employment and the contingent workforce are the driving necessities to business and economic health. There are areas in every business where workers are being exploited, used (not just staffing) and we as an industry should not tolerate it. Business owners that think they can treat people in such a way typically set up their own fall into failure. The internal workforce will not survive in such a shady environment. It’s like cancer and after a while it will eat at a company destroying dignity, morale, profit and eventually the company itself. I’m sorry contractors, temporary employees and the like. We’re not all low down. In fact, most of us genuinely care.
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exactly…business owners that treat people like that set up their own failure
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Hi everyone, it was gratifying to get the responses to my post and I realize that this is hot-button issue that everyone in our business has thought about. My main point, hopefully used in this example, is that for every ten great staffing firms out there, there is one that will hurt the professionalism and pride of the industry. Lisa from above apparently disagreed, but I think everyone who has been in staffing for a while will realize that these images lead to perceptions that hurt business and lower expectations.
I liked Kelly’s last post. It emphasized responsibility and argued for pride in work. That will turn the tide. Bad news, or exploring areas of frustration, is not always fun for anybody, but it helps drive success.
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I once heard in a PR seminar that it takes 9 good stories to overcome one bad one. Not sure of the statistics behind it, but is sure feels right!
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