Legal Issues for Medical Staffing Agencies
The basic premise of medical staffing agencies is to find qualified staff and link them to hospitals. Dealing with what hospitals need and want often puts the staffing company in a position that can lead to problems with human resources and legal issues. Be aware of the laws that exist and how those laws affect your particular state and how those laws are administered by state and local regulatory bodies within your specific niche. You need to adhere to such things as what benefits are given, how you classify your staff, and what taxes are due.
Classify your staff correctly
It is common practice in the staffing field to classify employees as independent contractors. A main reason for this is due to the many requirements set by different states, those requirements often put employment agencies at a financial disadvantage by having to pay workers more and having to be responsible for taxes owed to states. according to the classification of its employees. The Government is also aware that this classification is a “red flag” for them, especially as, according to the Government, the self-employed are less likely to report.
follow the law
It can be tempting to classify your staff as exempt so you don’t have to pay them overtime. This may be in direct violation of the Fair Labor Standards Act. Therefore, correctly classifying your staff and paying them for the overtime they work is a critical part of complying with employment laws.
Do not discriminate
Your agency is not exempt from having to follow the various regulations and laws that directly deal with who you hire and how you hire them. It is no different than any other business. Like any other business, you cannot discriminate based on gender, age, or race. Other regulations you must comply with are the Americans with Disabilities Act (ADA). Also, look for other potential regulatory bodies to observe OSHA job-related standards. Your agency and the staff it hires may be eligible for unemployment compensation and must comply with these laws as an employment agency.
Your agency really needs to look at all aspects of what is offered, what documents are signed, how to deal with staff discipline, and how to fire staff. You need to make sure your contracts are scrutinized and protect you and your business in case you get sued. Don’t ignore the need to cover your base when starting or growing your business. You may already have a business, but the legal aspects of running an agency cannot be ignored and must be continually addressed and updated.
Violation of employment laws can be daunting if not dealt with correctly with agreements, hours worked, and proper pay. Your people are the lifeblood of your organization, treating them equally and fairly is the right thing to do, but it is also your responsibility to protect your business from legal trouble. Always consult an attorney for any legal issue related to employment law.