New York, New York: Last week, nextSource reached out to over 5,400 legislators, industry analysts and professional association members to advocate for greater protections and benefits for Temporary Workers – including contract laborers, independent contractors and other freelancers – and for the staffing industry at large.
It is estimated that nearly one-third of America’s labor force is comprised of temporary workers. Each year, America’s staffing agencies hire 16 million temporary employees for their client companies, then employ those individuals as W-2 employees for the length of the client assignment. In addition, the Department of Labor reports that more than 10 million independent contractors also contribute to our economy. Temporary workers, once though of as day laborers who only fill clerical and light industrial positions, today also deliver a wide range of professional and executive capabilities and skills. For many, engagements last for more than a year.
During periods of contraction, these temporary workers are often the first to lose employment. And, as economic conditions improve, companies initially turn first to contingent workers in order to rapidly ramp up while maintaining needed business agility. Although they play a critical role in economic recovery, most legislation is based on the traditional notion that the vast majority of American workers are “permanent employees”, excluding contingent workers from employment benefits and protections. While the recently enacted CARES Act does provide unemployment benefits for temporary workers, there is no indication that inclusion will extend beyond the current crisis.
In addition, current legislation designed to stimulate the economy fails to recognize the ways in which in the CARES Act and other legislation eliminates many in our industry from taking advantage of the benefits enacted to foster economic growth. Professional Associations such as the American Staffing Association estimate that the 20,000 staffing and recruiting firms in the U.S. together represent sales of more than $150 billion. Many of these companies are actually small businesses that appear significantly larger due to the thousands of workers who are carried on their payroll as affiliated employees for short periods of time. Yet, current headcount limitations in today’s stimulus packages consider these affiliates to be permanent employees, disqualifying many from financial assistance available to small businesses.
nextSource is encouraging others to join us in advocating for employment legislation that reflects the changing nature of how work is conducted in America. To learn more about how you can help, please contact us.
About nextSource: nextSource connects businesses to the best talent through innovative workforce solutions that deliver extraordinary service, efficiency, analytical insight, risk mitigation and improved access to talent that enhances a unified workforce. Solutions offerings include Managed Services Program, Employer of Record services, Independent Contractor Compliance, Statement of Work based Project Services Management and Consulting on Total Workforce Solutions. As a privately owned business with over 20 years’ experience, nextSource provides a personalize, intelligent approach to workforce solutions driven by high impact, strong results and continuous growth. For more information, visit www.nextSource.com.