News / Compliance, Hospitality Staffing, Management, Safety
What Every Hotel GM Should Know About Staffing Agency Practices
A low bill rate might seem like a good thing. However, when you look at state and local minimum wages, these bill rates might indicate that workers are not being properly classified. If a staffing agency is paying workers and issuing a 1099, they are misclassified. The lower taxes that employers are paying allows them to give lower bill rates by skirting tax obligations. This however is illegal. It is also harmful in the long run to employees who could potentially face penalties from the IRS, since they have no clue that they now have different tax reporting responsibility.
Many staffing firms work in the marketplace until they run afoul of rules and regulations, declare bankruptcy and open under a different name. This is a warning sign that their internal practices may be corrupt, and partnering with these types of agencies should be avoided.
Staffing agencies should partner with hotels and resorts to help reduce worker injuries. This helps reduce costs, improve productivity, and increase worker retention. If an agency has no safety team, protecting against injury is no more than a hope or prayer. It is easy to say that safety is a concern but backing up that claim with real action is something else.
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