Staffing Industry Review (02/01/12) Craig Johnson

The number of staffing clients saying they let temporary workers go because of assignment time limits in 2011—66%—was up from 55% that said they had assignment limits in 2009, according to a survey of staffing buyers by Staffing Industry Analysts. A majority of buyers cited “legal/co-employment risk” concerns as a reason for assignment limits, with “union agreements” and “historical decision of previous managers” also often cited. The survey polled 236 staffing buyers from large firms that employ more than 1,000 people.

The specter of the lawsuit Vizcaino v. Microsoft also lingers. In that case, from more than a decade ago, independent contractors sued Microsoft after a U.S. Internal Revenue Service audit ruled they were common law employees. The workers sued the company for unpaid benefits, and Microsoft ended up settling the “retro-benefits” case for $97 million.