How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tina Your Own Question
Tina
Tina, Attorney
Category: California Employment Law
Satisfied Customers: 33166
Experience:  JD, 17 years experience & recognized by ABA for excellence in employment law.
4460311
Type Your California Employment Law Question Here...
Tina is online now
A new question is answered every 9 seconds

I am not a traditional staffing company, but I provide employment

Resolved Question:

I am not a traditional staffing company, but I provide employment services to the corporate world and TV production companies…special effects artists, editors, etc. In some instances employers provide me with the job skills they are looking for in an individual and I will locate that person. If the employer hires them, they will pay me a placement fee. In other instances, I will recruit an individual and provide this person to the company on a temporary basis as a W-2. I am the employer of record and I am paid a continuing fee. In some cases I will provide an independent contractor to an employer for short term assignments. I have successfully defended this relationship on at least two occasions with state EDD departments.

I was working with a TV Production company that asked me to payroll some people that they had recruited, hired and were working at their offices under their supervision, and they were compensating these individuals as independent contractors. The company transferred these individuals to me to payroll, as well as any individuals they hired in the future. All of these individuals are being compensated as independent contractors. I am paying the individuals and the company is reimbursing me and paying me a 9% fee for pay rolling. As an accommodation I am supplying the contractors with the 1099. I did not hire any of these individuals and I cannot place them at any other companies.

My question is, “am I considered the employer of record since I am supplying the 1099’s or is the TV production company considered the employer of record since they are recruiting, hiring, supervising and controlling the means whereby the work/service is accomplished?”
Submitted: 5 years ago.
Category: California Employment Law
Expert:  Tina replied 5 years ago.
Hello,

Since the company transferred the employees to your payroll and you contractually agreed to that, the workers would typically be considered your employees based on this hybrid type of employment relationship. You would not normally have the discretion to treat them as independent contractors since the company does control the terms of their employment and you have contractually agreed to include them on your payroll.

They would normally be treated as though you were contracting them out as temporary workers to a third party, in which case they would be your employees.

I hope you found my answer helpful; please click on the GREEN ACCEPT button above for my answer. This is necessary for me to be paid for my work and so that I can get credit for assisting you. Your question will not close, and you will still have the opportunity to follow-up if needed. Leaving a bonus and positive feedback is not required, but doing so is certainly appreciated!

If you have additional questions, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous. Thank you.

Tina and other California Employment Law Specialists are ready to help you

Related California Employment Law Questions