Working with temp. employees, did I find a fair company?

Discussion in 'Business Operations' started by justmjc, Feb 7, 2004.

  1. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    Seems that I have a local company that supplies individuals, general laborers for a billing rate of 1.5x the wage I want to pay them. So, if I pay $8/hr for someone to trim, I'm billed at $12. I don't think thats too bad considering I don't have to deal with the paper work and things associated. They said all individuals are screened and they have a large pool available on call. I like that.

    My question is this....if the agency is the laberors employer, and I hire someone and they get hurt on the job, aren't I liable as well?Or do these temp agencies take all responsibility?

    Hell, if I can find someone that can work a trimmer and stand 90-100 degree weather for 8-10 hours, I'll keep them working full time.
     
  2. grassguy_

    grassguy_ LawnSite Senior Member
    from Ohio
    Posts: 633

    USUALLY, and that is the key word, the temporary agencies will carry the workers' compensation coverage in the fees you are getting charged, for example the 1.5 times the normal hourly rate you would pay to an employee. Just be sure they are covering that part of the the requirement for you as an employer, even though you are subcontracting from the employment agency that doesn't always guarantee they are handling that end for you.
     
  3. charlies

    charlies LawnSite Senior Member
    from earth
    Posts: 587

    dag gone thats a good price. i can't get 'em for less than 23 or so around here.
     
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi justmjc,

    Can you contact your insurance carrier and ask them? I would think you would need coverage as well. There is nothing to stop them from suing you if they were injured.
     
  5. D Felix

    D Felix LawnSite Bronze Member
    Posts: 1,898

    I know the contractor we used at my previous employer was a similar set-up. I think they had all insurance through the contracting company.

    It's a pretty decent deal if you don't want to worry about finding help on your own and dealing with their taxes. Plus you don't have to worry about keeping them busy in your "down" time. That's left to the contractor to worry about.

    I would make sure that the contractor had adequate insurance, and make sure you get a copy of their certificate of insurance. And check with your insurance carrier too, as Gopher suggested. If you hire them as a "sub" then you will probably need a copy of their C of I.


    Dan
     
  6. charlies

    charlies LawnSite Senior Member
    from earth
    Posts: 587

    hi:eek: :D
     
  7. Scenic Lawnscape

    Scenic Lawnscape LawnSite Senior Member
    Posts: 288

    is this labor ready? if it is be carefull a friend of mine just used them the other day and they claim to do backround cks, well he got pulled over in the customers drive way and had I quote from the cop "this guy has multiple warrents give me a few mins and ill have him out of your way" makes you wonder what kind of background ck they do, i was going to use them this year but after that im nervous
     
  8. justmjc

    justmjc LawnSite Senior Member
    Posts: 261

    Do you mean along the lines of people walking in the door same day looking for a job, labor ready?

    Then yes, and thank you for the heads up. I'll check insurance and any background documentation they let me, if they let me.

    topgunlandscaping, shoot me a pm. I wanted to ask you a few questions because we are each from the same area, it seems. It would be nice to actually have another company to deal with on friendly terms for a change, because there seem to be plenty of a-hole companies around here.
     
  9. thill

    thill LawnSite Member
    Posts: 245

    Hmmmm, right down my alley

    We have a landscaping company (2.5 yrs old) and a temporary employee company (15 yrs old). Offices in TX, AL, and formerly CA.

    Worker Compensation insurance is regulated by each state so I do not know Michigan law but most states are similar except CA.... that is why we are no longer there.

    In TX and AL, the agency normally carries WC insurance. Our clients ask us for an "ACCORD" certificate of insurance that shows policy numbers on liability and W/C insurance.

    Ask you agency for this certificate. If they provide it, the employees are covered. If you have an accident with a temp, you contact the agency to send the temp to a doctor and to file the "first report of injury".

    If they do not supply the cert, contact your insurance carrier to make sure your temps are covered.

    Good luck
    Tom
     
  10. ollie212@tds.net

    ollie212@tds.net LawnSite Member
    Posts: 60

    Last season we went with a temp agency paying about what you are paying.. and yes temp service assumes all ins. w/c claims and taxes on the indivisual. u just pay the bill for the temp agency. However i dont know about your temp agency but the one i used was sending me horriable help. after about 2 months we stoped the temp agency and stuck on our own .. never know maybe yours could be diffrent. good luck.
     

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