Four Questions to Ask Your Hospitality Staffing Company
1. Do they have professional liability Insurance?
If the staffing company you use does not carry professional liability insurance, you may be held liable for theft or damages caused by their staff while working for you.
2. Are their staff W2 employees or independent contractors?
You incur considerable risk using a staffing company which classifies its staff as contractors rather than W2 employees. Please see the following - https://independentcontractorcompliance.com regarding a recent large judgment against Arise Staffing. “Client companies can suffer as well from IC (independent contractor) classifications lawsuits, even when they are not the primary target. In the Arise cases, the client companies were likely to have incurred or continue to incur substantial legal costs themselves and may be subject to further legal claims. Moreover, where the client company itself directs or controls the workers found to be misclassified as ICs, it may be found to be a joint employer with the staffing company or the sole employer of the workers. In either instance, client companies run the risk of joint and several liability with the staffing company, or liability on its own, for violation of labor laws or for failure to withhold taxes and pay for unemployment. Indemnification clauses do not offer complete, or sometimes any, protection to corporate clients, especially where the staffing company does not have the financial resources to make the client whole“
3. Is their staff trained to your specifications?
Any agency can hire staff, check licenses and place them with clients. But your needs may be much more specific. Many hospitality staff have years of experience, but may not have specific training that meets your policies and procedures.
4. Is their staff screened, background checked?
Your agency should be doing pre-employment screening whiich includes a criminal background checks.
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