Contingent or Non-Standard Work
Contingent or “nonstandard” workers lack the benefits and protections extended to full-time employees.1
Short-term, part-time, contract and subcontract workers are typically paid less and receive more paltry benefits than their full-time, permanent colleagues. And since labor laws are rarely enforced on their behalf, nonstandard workers are more often exposed to dangerous conditions and discrimination.
Nonstandard workers comprise 30 percent of the U.S. workforce.
Agency temps, direct-hire temps, on-call workers, day laborers, contract workers, independent contractors and other nonstandard employees constitute about one-third of the American workforce.2
Key labor laws do not cover contingent workers.
Nonstandard workers generally do not have the right to collective bargaining, family and medical leave, or unemployment insurance. Moreover, some employers misclassify workers as independent consultants so they do not have to offer benefits to them. Temp agencies may mislead their workers with inaccurate job descriptions, pay scales and work schedules.
Day laborers and other temporary construction and industrial workers are at higher risk of injury because they may receive inadequate job training.
Employers of temporary workers often fail to enforce Occupational Safety and Health Administration (OSHA) regulations because of conflict between the hiring agency and the client over responsibility for training and safety. In May 2001, the California agency that enforces OSHA ruled in two cases that temp firms have a duty to ensure that job sites are safe. In both cases, the temp agency argued that it was impractical to inspect and monitor every job site for safety. According to CAL-OSHA, “no employer shall require or permit any employee to go to or be in a workplace that is not safe or healthful.” CAL-OSHA further noted that the decision by a temp agency to supply construction contractors with workers comes with the responsibility to ensure the safety of those workers.
In many states, temporary workers have difficulty collecting unemployment insurance benefits.
Temporary workers are often denied unemployment benefits if they refuse to take a job offered to them by their temp firm, even if the offered assignment is not comparable to their prior assignment and pays less.
Women and people of color disproportionately hold contingent jobs.
In a 2000 survey, 31 percent of minority respondents—compared to 22 percent of the general public—said that during the previous ten years they had worked as part-time, temp or contract employees when they would have preferred a standard job.3 Over two-thirds of the public believes it is unfair that contingent workers get paid lower hourly wages than regular employees doing the same work.4
States have enacted laws that extend employment protections and unemployment benefits to contingent workers.5
- Limiting temporary work in state employment—Maine requires a report to the legislature at the beginning of each session that provides information on all temporary and contract positions within each state agency. Colorado law limits temporary employment with the state government to six months.
- Providing part-time workers with unemployment insurance—Twenty-four states and the District of Columbia now allow part-time workers who seek only part-time work to collect unemployment insurance.
- Defining temp clients as employers—Texas law clarifies that client companies, in addition to leasing firms, are subject to most labor law requirements. New Mexico also has clarified the definition and status of a leased worker.
- Combating independent contractor misclassification—Massachusetts and New Mexico have created a presumption of “employee” status for workers who perform labor or services for a fee, which ensures coverage under labor and employment laws. Florida, Illinois and New Hampshire passed laws on this issue in 2005.
- Disclosure for temporary workers—Rhode Island requires temporary agencies to provide temp workers with accurate job descriptions, pay rates and work schedules in writing.
- Regulating day labor pools—Five states have adopted proposals that regulate day labor pools. Illinois’ law is the most extensive. It requires disclosure statements by day labor agencies and itemized statements of workers’ wages with deductions noted. The law prohibits charging workers for safety equipment, tool use, cashing paychecks or transportation services. Its law was expanded in 2005. New Mexico and Oregon passed similar laws in 2005.
- Studies and commissions on nonstandard work—Maine, New Hampshire, North Carolina, Rhode Island and Washington have enacted legislation that requires state studies or commissions to examine a range of issues related to nonstandard work.
This policy summary relies in large part on information from the National Employment Law Project.
Endnotes
- Economic Policy Institute, “The State of Working America,” 2003.
- U.S. General Accounting Office, “Contingent Workers—Income and Benefits Lag Behind Rest of Workforce,” June 2000.
- Lake Snell Perry & Associates, “Contingent Workers Fight for Fairness,” 2000.
- Ibid.
- National Employment Law Project, “Select Summary of State Legislation Affecting Non-Standard Workers in 2005,” September 2005.
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