A staffing firm provides landscaping services for clients on an ongoing basis. The staffing firm selects and pays the workers, provides health insurance, and withholds taxes. The firm provides the equipment and supplies necessary to do the work. It also supervises the workers on the clients premises. Client A reserves the right to direct the staffing-firm workers to perform particular tasks at particular times or in a specified manner, although it does not generally exercise that authority. Client A evaluates the quality of the workers' performance and regularly reports its findings to the firm. It can require the firm to remove a worker from the job assignment if it is dissatisfied. Who is the employer of the workers? Why?

Question

30-01-2020
Business

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A staffing firm provides landscaping services for clients on an ongoing basis. The staffing firm selects and pays the workers, provides health insurance, and withholds taxes. The firm provides the equipment and supplies necessary to do the work. It also supervises the workers on the clients premises. Client A reserves the right to direct the staffing-firm workers to perform particular tasks at particular times or in a specified manner, although it does not generally exercise that authority. Client A evaluates the quality of the workers' performance and regularly reports its findings to the firm. It can require the firm to remove a worker from the job assignment if it is dissatisfied. Who is the employer of the workers? Why?

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Answer and explanation:

The staffing firm and the client are the employers of the workers because in operations they work as joint employers. Joint employers share control and supervision of the activities of employees of two or more business entities. Usually one of the parties is in charge of providing the workers with the benefits imposed by law -wages, retirement accounts, and health care- while the other party handles the monitoring of the workers' performance. Some organizations such as staffing agencies, subcontractors or franchise operators handle their labor force under this regime.