Most small business people assume that if they hire an employment service or staffing agency to handle their workers that everything has been taken care of and all the liability is now in the hands of the outsourced company. This is not exactly so. You see, just because you’ve hired such a group to handle this, does not mean that all the clauses in the contract alleviate you from all of your responsibilities as an employer.
Most likely you will indeed, have the company pay the payroll taxes, hiring and firing, but you still are responsible for the well-being of that employee while on the job. You still must comply with all OSHA laws. You are still required to maintain a safe working environment. And if these employees operate machinery of “any kind” you are responsible to make sure they understand how to use it.
Further, you might be unpleasantly surprised to find your contract to use the employment service, a contract generally written by them, is very carefully worded to shift much more of the responsibility than you think onto you and your small business. Sometimes hiring a temporary agency, employment company or staffing service is not exactly as great a strategy as you might think it is.
Most small business folks use these services to shield them from liability, save them from workmen’s compensation insurance, and reduce all the paper work and liability of labor issues. Make sure you contact an attorney that specializes in this type of law and talk with your insurance agent to see if all this is working the way you think it is suppose too, then move to shore up the risks where necessary.