Monday, July 6, 2009

Staffing/Leasing Companies- The Big Deception

It's like being married and finding out your wife isn't who you thought she was and learning about her at the divorce proceeding. A similar situation happens to employees across the country every day without their knowledge. Employers turn their employees over to staffing/leasing companies to avoid paying unemployment taxes, worker's compensation and payroll. Staffing/Leasing companies will do this for a fee. (Here's how it works: If the employer was paying $10.00 per hour for the secretary or IT professional, instead the employer pays the staffing/leasing company $14.00 per hour for the same employee.) The employer accepts the arrangement and in a split second, the employee is fired from the employer, picked up by the Staffing/Leasing Company and then the employee is leased back to the employer. The Staffing/Leasing company becomes the employer. And, at an unemployment hearing the (former) employer becomes the witness for the Staffing/Leasing company and swears that the employee was aware of the switch and aware that they had 72 hours to report to the Staffing/Leasing Company for re-employment. The employer will swear up and down that the employee was notified about the switch at some Monday meeting and the employee even signed off on the paperwork. Unfortunately the employee did not read the fine print and had no knowledge of what occured. Sound familiar? Let's hear your experience.

1 Comments:

At July 13, 2009 3:46 PM , Anonymous Anonymous said...

Over the last few months,I've noticed the name of a staffing agency on my paycheck. I'm not sure who they are. My employer said it was a payroll company, but I think you may be right Work Doctor, my employer pulled a fast one on me.

 

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