National Roofing Legal Resource Center

Contract provision addresses working with temporary labor providers or staffing agencies

In the current tough labor market, many roofing contractors are turning to temporary labor companies or staffing agencies to supply workers for additional help. The workers supplied to the roofing contractor are always employees of the labor provider, not the roofing contractor. As such, roofing contractors using the services of a temporary labor provider or staffing agency must ensure the entity they contract with retains responsibility for paying its employees' wages; withdrawing the required withholdings from employees' pay, including paying federal Social Security taxes; and providing unemployment and worker's compensation coverage. Additionally, the agreement between the roofing contractor and the labor provider must clarify the labor provider retains responsibility for verifying the employment eligibility of its employees assigned to the roofing contractor. This provision provides these protections to the roofing contractor and includes a provision obligating the labor provider to defend, hold harmless and indemnify the roofing contractor from any claims brought against the roofing contractor because of the labor provider's failure to comply with all applicable legal requirements.

Working with temporary labor providers or staffing agencies: Staffing Agency assumes exclusive liability and responsibility for the payment of wages to its employees assigned to Contractor. Staffing Agency shall be responsible for withholding federal and state income taxes, paying federal Social Security taxes, unemployment insurance and maintaining worker's compensation coverage in an amount and under such terms as required by the state where the work is performed. Staffing Agency shall also be responsible for taking all appropriate actions to verify that each of its employees and agents are legally eligible to work in the United States, including maintaining current I-9 forms for its employees assigned to Contractor, and shall participate in the E-Verify program if required for the construction project or applicable law or regulation. Staffing Agency shall defend, hold harmless and indemnify Contractor from any costs, damages, expenses, fines and losses incurred by Contractor resulting from a failure by Staffing Agency or a charge against Contractor due to a failure by Staffing Agency to comply with all legal requirements applicable to Staffing Agency.


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