Using Contract Workers
One of the current trends among companies is to use temporary or contract employees to perform work for a business. Oftentimes, the organization uses these outside-type of workers in an effort to cut costs and increase profits. At the same time, using non-company workers can blur the line as to who the true employer is. However, a recent ruling from the National Labor Relations Board could dramatically alter who is classified as a company employee.
Ruling
At the end of August, 2015, the National Labor Relations Board (NLRB) issued a ruling which states that companies who hire employees who are hired by another business, such as workers from a temporary staffing agency, could be held potentially liable for any labor violations. Furthermore, the businesses who use outside workers could be required to negotiate with any unions who represent these workers. The ruling will affect a wide range of workers, including but not limited to employees of temporary staffing agencies, contractors or sub-contractors, and even individuals who work at a franchised fast-food restaurant.
How This Affects Businesses
The NLRB decision could have an impact on how companies operate. First, organizations will be forced to evaluate how they run the business and how they classify their employees. In lieu of using contractors or temporary employees, companies may decide to hire workers directly. Doing so could allow the business to avoid any potential issues that may arise from potential dual-employment of the individual in question.
At the same time, the companies could be forced to pay additional benefits to the workers, including but not limited to health insurance, retirement benefits, and sick and/or vacation pay. Providing these benefits to an employee would also result in higher costs for the organization.
How This Relates to Workers
By the same token, the NLRB ruling could impact workers. As stated above, employees could stand to gain a number of benefits that they would not qualify for otherwise. In addition, workers could be guaranteed more steady work and more hours as opposed to sporadic employment with low pay and no extra benefits.
Furthermore, employees who are unhappy with their working conditions will have an easier time to protest any working conditions that they deem unfair. The individuals will be able to approach management and voice their concerns in a method that could benefit the person in the long run.
Opinions
There are a number of varying opinions regarding the NLRB decision. Businesses feel that the ruling could have a negative effect on the economy. Companies also believe that the decision could hurt their profit margin.
Workers, however, may be more inclined to look upon the ruling favorably. Labor unions believe that the NLRB decision could help to expand the definition of what an employee is. Unions also feel that the decision could potentially result in workers having higher wages and more benefits, among other things.
Conclusion
If an organization is trying to decide if they should use outside employees or are unsure as to what benefits a union or temporary worker qualifies for, it can be beneficial to speak with a business attorney. A lawyer can explain all of the issues that may arise from using contract or temporary labor. In addition, the attorney can discuss what the company can do to shield themselves from any liability. Finally, a business lawyer can provide any possible alternatives for the organization.