Loopholes, Lack of Regulation Let Employers Exploit Temp Agencies to Hire Undocumented Workers

If business owners want to benefit from undocumented labor, there’s one loophole that often allows them avoid prosecution: temporary staffing agencies, which are easy to start and operate in an industry with plenty of room to cut corners on all kinds of labor laws.In Texas, temporary staffing firms are not required to be licensed, so one is watching them for bad behavior.Staffing industry leaders pride themselves as job creators and large-scale employers. According to the American Staffing Association, the industry accounts for nearly 1.5 million jobs each year in Texas and the average temporary staffing employee earns $40,600 annually in the state. Staffing firms offer on-site training and help workers transition from one industry to another.But among staffing companies there’s disagreement about whether licensing and regulation would help or hurt the industry. Many acknowledge that the industry’s business model creates opportunity for inappropriate actions.  Continue reading...

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