Royal Oak, MI asked in Business Law and Employment Law for Michigan

Q: Can I work for a staffing agency internally and as an employee contracted out by the agency to a client?

I work for a staffing firm that does payroll/hr/admin contracting for a large client. I’m a corporate employee who manages the hr system for both the staffing agency and the client, in the past I managed payroll for both companies as well (the contracted agency employees and the direct client employees). I am often pulled in multiple directions as I must serve both companies needs/projects, is it legal to work for “both”; the agency as an internal employee and as a contracted out employee? I want to understand my rights and cannot find much guidance on the subject.

Related Topics:
2 Lawyer Answers
Brent T. Geers
Brent T. Geers
  • Grand Rapids, MI
  • Licensed in Michigan

A: As a practical matter, I'm not sure it's to either company's benefit for you to manager HR for the both of them. Payroll is another matter, which I don't think is much of an issue.

The arrangement is likely legal; "best practice"? probably not.

Alexander Ivakhnenko agrees with this answer

A: It sounds like a very suspect way of handling your professional duties as it reveals an obvious conflict of interest and tax liabilities that must be paid on behalf of the employee.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.