How can you ensure that a temp staffing contract includes worker's compensation provisions?

1 Know the laws and regulations

Different states have different laws and regulations regarding worker's compensation. Some states require all employers to provide worker's compensation coverage, while others exempt certain industries or sizes of businesses. Some states also have special rules for temp staffing agencies, such as requiring them to register with the state, obtain a license, or pay a fee. You should research the laws and regulations of the state where you operate and where your client operates, and comply with them accordingly.

2 Negotiate the terms and responsibilities

Your contract with your client should clearly define the terms and responsibilities of each party regarding worker's compensation. For example, you should specify who is responsible for paying the premiums, reporting the injuries, filing the claims, and providing the benefits. You should also clarify who has the authority to direct, supervise, and control the work of your workers, and who is liable for any violations or penalties. You should avoid any terms that transfer your liability to your client or vice versa, as this could expose you to legal risks.

3 Review the coverage and limits

You should review the coverage and limits of your worker's compensation policy and make sure it matches the needs and expectations of your client and your workers. You should consider factors such as the type of work, the industry, the location, the duration, and the frequency of the assignments. You should also check for any exclusions, deductibles, or co-payments that could affect your coverage or costs. You should communicate with your insurance provider and your client about any changes or updates to your policy.

4 Train and educate your workers

You should train and educate your workers about worker's compensation and their rights and obligations. You should inform them about the benefits they are entitled to, the procedures they need to follow, and the documents they need to provide in case of an injury or illness. You should also instruct them on how to prevent and avoid workplace hazards, how to report any incidents or concerns, and how to cooperate with the investigation and treatment. You should document and record your training and education efforts.

5 Monitor and evaluate the performance

You should monitor and evaluate the performance of your worker's compensation program and identify any issues or areas for improvement. You should track and analyze the frequency, severity, and cost of the claims, and compare them with the industry benchmarks and best practices. You should also solicit feedback from your workers, your client, and your insurance provider on their satisfaction and expectations. You should use the data and feedback to adjust your contract, policy, or practices as needed.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?