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I work for an Engineering Consulting organization and my company have a practice of hiring temporary employee’s, for an undefined period of time, but for a specific project. When the project is
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Temporary EmployeeÂ’s
posted at 5/5/2009 10:51 AM EDT
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Posts: 7
First: 5/4/2009
Last: 2/8/2011
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I work for an Engineering Consulting organization and my company have a practice of hiring temporary employee’s, for an undefined period of time, but for a specific project. When the project is over, the working relationship ends.
Question: Do we face any legal ramifications by hiring temporary employees, on our payroll, working for an undefined period of time, but project specific, at 40 hours + per week , no benefits except for the legally mandated benefits.
In regards to the undefined period of time, our clients such as Department of Transportation dictates the term/length of employment. When the client say please remove this person from our project, the employment relationship with my company ends with that employee.
These folks can be either exempt or non-exempt and we follow all state OT laws as applicable.
How do you handle temporary employees on your payroll?
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Temporary Employee�s
posted at 5/5/2009 11:00 AM EDT
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Posts: 1103
First: 3/16/2007
Last: 8/19/2011
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In my federal contracting days we did as you wish on many occasions. The terms and conditions of employment were always driven by the terms and conditions of the contract. These employees were categorized as contract employees, we did not refer to them as temps. Their employment was set to expire at the end of the contract or with appropriate notice by either party, normally 30-days.
Now this practice was several years ago and tiomes may have changed.
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Temporary Employee�s
posted at 5/6/2009 6:45 AM EDT
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Posts: 2146
First: 2/15/2006
Last: 9/14/2011
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I agree that it is fully legal, but you will need to watch the time limits for eligibility for your benefits (health, etc). You can class out temporaries under most of those plans, but the plan/contract has to be written to do so.
However, on 401k plans, you need to check your plan document to see maximum elibility that can be required. You can extend this time a bit by having annual, semi-annual or quarterly "entry dates" after eligibility, but a lot of times keeping temporary employees for more than say 6 months can make them eligible for your 401k plan. Many plans have entry dates after the employee (temp or not) has worked 1000 hours.
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