Q. When employees are transferred to the leasing company, does the original company lose the authority to direct the daily activities of the employees?

A. No. The arrangement allows for the original employer to continue to direct daily activities and to make decisions on hiring, dismissal and promotions.

Q. How many employees are currently on the payrolls of leasing companies?

A. It is estimated that about four million employees, nationwide, are now working under a lease arrangement. This number is expected to double within the next four years.

Q. What advantages does H.R. Servs., Inc., NV, Corporation offer over other leasing companies?

A. Clients of H.R. Servs., Inc., NV, Corporation benefit from the company's strong legal department and its years of experience in the business. The company does not offer "canned", "off-the-shelf" programs. Each program is carefully designed to match the needs of the client company and the employees.

Q. Is there a limit on the number of employees that can be leased?

A. There are no lower limits nor upper limits on the number of employees. Client companies range from large corporations to one man operations. A company can also lease some employees and retain others on their own payroll.

Q. Who would be sued in a wrongful termination, harassment or discrimination action?The hiring employer or the leasing company?

A. It generally depends on the contract between the hiring employer and the leasing company. The case law nationally suggests that the hiring employer faces the suit if it occurred at the workplace; the leasing company assumes liability if “bad advice” was given or if it involves activity that the leasing company was engaged in (i.e. malfeasance, fraud, etc.).

Q. How do the employees feel about a leasing arrangement?

A. Although initially suspicious, employees feel more comfortable when they are informed that “nothing is really changing at the workplace.” The hiring employer still controls: hiring, firing, supervision, and salaries. Therefore, the employee is still accountable to their supervisor. Moreover, employees can now enjoy the more expansive benefits offered by the leasing company.

Q. We’re a company with collectively bargained (union) units. How does employee leasing impact that?

A. Nothing changes insofar as the collective bargaining process is concerned. The hiring employer still negotiates with the union on a variety of matters. The leasing company is not involved in this process; however, the process is streamlined since the leasing company expedites payment to the union for benefit plans. This common complaint is alleviated through the use of a 3rd party (leasing company).

Q. If an employee has a grievance, whom does he/she take it to?

A. The employee takes it to their supervisor; however, the leasing company can provide valuable input with respect to the proper handling of the dispute.

Q. If I utilize the services of a leasing company, what happens to my human resources dept. or person?

A. Although using an employee leasing company represents an opportunity to downsize this area, most employers reassign the duties of these specialists to focus on more profit-oriented areas. For example, by eliminating nuisance government paperwork, they could now concentrate on recruiting quality people, training, testing, wage and salary review, modifying or adding benefit programs, internal surveys, and projecting future personnel needs. Another benefit is that H.R. people can now do more thorough background checks of candidates to avoid potential problems and lawsuits.

Q. Do I have to scrap my benefit programs if I go to a leasing company?

A. It depends on the leasing company. Some of them require that you enroll in their benefit programs to keep their participation levels up. Others do not. You should check your contract with the leasing company to determine their position.

Q. If the leasing company goes "belly up," who is responsible for unpaid payroll taxes and benefits?

A. This would depend on the verbiage of the contract. Check it carefully to see who is responsible for what. Even though the contract assigns payment responsibility to the leasing company, the government may still pursue the hiring employer if there are unpaid payroll taxes. It is useful to check several references and the Better Business Bureau to see if the leasing company has had any trouble in this area.

Q. Can I really save money by using a leasing company?

A. Statistics have proved that employers can save anywhere from 15% to 30% less than existing expenditures for administrative time, benefits, outside accounting and legal expertise, workers’ comp. And human resources activity. Employee leasing reduces costs and liability!

Q. What does Workers' Compensation insurance cover?

A. Workers' Compensation insurance covers the cost of medical treatment due to job related injuries, lost wages, benefits for permanent disability and rehabilitation benefits.

Q. How are Workers' Compensation Premiums determined?

A. Workers' Compensation premiums are quoted as a specific rate per $100 of income. This rate is based on the type of work that an employee performs and on the safety record of the company.

Q. What can a company do to keep premiums down?

A. Establish a management commitment to keep claims down.

• Review regularly to determine patterns.
• Keep accurate records of current and prior claims
• Screen potential employees carefully. Check references and past claims history. Require a post job physical and include safety in their job descriptions
• Establish safety rules and regulations, enforce a safety program and make employees accountable for their safety performance.

Q. How should a company handle requests for references?

A. Providing references regarding former employees can get a company into trouble. You could be protected as long as your report on that employee is based upon creditable evidence and made without malice. It is probably wise to seek an employee's express, written consent before providing detailed references, including those made with malicious intent. Best policy! Keep your comments to the basics: date hired, date left and position held.

Q. Are there any questions that an interviewer may not ask a disabled applicant?

A. The E.E.O.C. has provided some latitude with respect to questions that an interviewer can ask disabled applicants. Now, you can ask such an applicant before extending a job offer whether she or he needs a reasonable accommodation and what type of accommodation would be needed to perform the function of the job.

Q. Can demotions lead to employee claims?

A. Former employees can bring claims against the employer alleging that they were forced to quit because of intolerable circumstances (major decrease of position and salary) and that their employment contract was breached. Avoid the constructive discharge claim by avoiding the introduction of adverse working conditions in a continuous pattern for the demoted employee.