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.

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2 Lawyer Answers
Brent T. Geers
Brent T. Geers
Answered
  • 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.

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