In the staffing industry, particularly when it comes to manufacturing roles, proper document management is not just a matter of organization—it's a legal necessity. Unfortunately, some staffing companies cut corners to save costs, resulting in poor document management practices. The repercussions of such negligence can be severe, ranging from lawsuits filed by employees over mishandled I-9s and tax documents to failed safety compliance during OSHA audits.
Areas of poor documentation
- I-9 Form Compliance: Mishandling I-9s can lead to legal actions and hefty fines from the Department of Homeland Security.
- Tax Documentation: Incorrect tax records can invite IRS audits and penalties. Mismanagement of these documents can lead to substantial legal issues for both the staffing company and the employee.
- OSHA Audits: If the staffing company cannot provide adequate safety training materials, it not only endangers the safety of the workforce but also exposes the client company to significant risk. In a dual employment situation, the client company shares the responsibility for ensuring proper training and compliance with workplace safety standards.
Dual Employment: Shared Risk
In a dual employment relationship, both the staffing agency and the client company are considered employers and share liability for the employees' well-being and compliance with employment laws. This shared risk makes it essential for client companies to choose staffing partners who prioritize compliance and document management.
- Legal Exposure: Both parties could face litigation if employment laws are violated due to poor documentation.
- Shared Reputation: Compliance lapses by a staffing agency reflect poorly on the client company as well.
Timpl Staffing’s Commitment to Excellence
At Timpl Staffing, we take a proactive approach to these challenges. We have invested in a state-of-the-art paperless document management system that ensures all our documents are accurately maintained and easily accessible. Our approach significantly reduces the risk of human error associated with manual handling. Our substantial investment in a state-of-the-art paperless document management system is a reflection of our foresight and dedication to excellence.
- Enhanced Efficiency: Streamlined processes mean faster, more reliable staffing solutions.
- Unwavering Compliance: Our commitment to regulatory adherence protects all stakeholders.
- Environmental Responsibility: Reducing paper waste is a commitment to sustainability.
Conclusion
For companies seeking staffing services, the message is clear: partner with a firm that understands the importance of document management and compliance. At Timpl Staffing, we offer peace of mind through our robust paperless system and our dedication to safety and compliance, ensuring that together, we can focus on building a successful and secure workplace.
|
|
Price change
|
Risk
|
Timpl way
|
|
Categorize Staffing employee as 1099 instead of w2
|
7.65%
|
Subject to Internal Revenue Service audit – Subject to fines imposed. In the event of a safety accident, industrial accident insurance is not applicable to individual businesses (a lawsuit can be filed against the customer). Staffing employees cannot receive unemployment benefits
|
All employees w2
|
|
When registering for the workers compensation Insurance, to lower the premium rate, provide false information to insurance company
|
3-10%
|
In the event of a safety accident, the industrial accident insurance company rejects the claim due to false information (a lawsuit can be filed against the customer). Customer information is entered incorrectly in the industrial accident insurance company’s system, which will have a negative impact on the customer’s future industrial accident insurance.
|
We share the client’s business model with the insurance company before submitting a quote. We only submit bids to clients when clients approved by insurance company. In order to minimize customer risks, the work comp rate limit is raised above the legal limit (1 million) We also subscribe to separate special insurance
|
|
Systematic paperless Management of legal HR documents
|
2-3%
|
employees can file lawsuits due to document mismanagement including i9, tax related documents, also during an OSHA audit on workplace, client company is exposed to risk due to inadequacy safety training materials. Staffing staff may fail to submit appropriate or correct safety training materials. Since staffing company and client is dual employer, risk is carried over to the client also.
|
We implement top tier paperless document management system. Safety training materials can be submitted within 4 hours upon OSHA request. Every year, we invest $300,000 to strengthen compliance.
|
