🇺🇸United States

Citations to both staffing agency and host employer for shared safety failures with temps

2 verified sources

Definition

OSHA treats staffing agencies and host employers as joint employers of temporary workers and can cite both for the same safety violation, multiplying penalty exposure. Failures in hazard training, supervision, or protective equipment for temps can therefore generate two sets of citations for a single underlying condition.

Key Findings

  • Financial Impact: $20,000–$150,000 per incident across both employers, depending on number and severity of violations (repeat/willful status can push totals higher)
  • Frequency: Monthly (OSHA has a dedicated Temporary Worker Initiative and regularly cites both host and staffing employers)
  • Root Cause: Lack of clear allocation of responsibilities for training, hazard communication, and PPE between staffing firm and host employer. OSHA explicitly states both are responsible for providing and maintaining a safe work environment for temporary workers and can hold both responsible for violative conditions, including lack of adequate training.[4]

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Temporary Help Services.

Affected Stakeholders

Staffing agency executives and owners, Host employer executives, Safety and EHS directors, Legal/compliance counsel, Account managers managing host–agency contracts

Deep Analysis (Premium)

Financial Impact

$20,000–$150,000 per dual employer citation • $20,000–$150,000 per incident in regulated healthcare • $20,000–$150,000 per OSHA incident (both staffing agency and government agency employer cited for same violation); internal investigation costs; remediation time; potential additional citations for recordkeeping failures; government sector reputational damage

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Current Workarounds

Account Executive includes boilerplate 'safe working practices' clause; no specific hazard identification for event type; no formalized hazard communication protocol • Account Executive includes generic 'safety training' language in contract; no specific hazard matrix; relies on post-placement email confirmations • Account Executive sends informal email summary after verbal agreement; contract lacks specific safety responsibility clauses; no formalized handoff to compliance team

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Six-figure OSHA penalties for unreported or delayed reporting of severe injuries to temporary workers

$70,000+ per willful reporting violation (per case), with potential for additional related citations

Surge in workers’ compensation and insurance costs from severe injuries to temporary workers

$50,000–$150,000+ per severe injury when combining medical costs, indemnity, legal fees, lost productivity, and premium impact; for larger temporary staffing portfolios, this scales to hundreds of thousands per year

Lost capacity and productivity from higher severe injury rates among temporary workers

$5,000–$20,000 per severe injury in direct productivity loss (replacement onboarding, training, overtime coverage), excluding medical/indemnity costs; across multiple incidents per year, this can exceed $100,000 in lost capacity for a busy staffing program

Misallocation of safety resources due to unclear injury and illness recordkeeping for temps

$10,000–$100,000+ per year in misdirected safety spend and avoidable injuries for medium-to-large staffing programs (through over-investment in low-risk sites and under-investment where temps are actually being injured)

Prolonged Time-to-Cash Due to Slow Client Payments in Temp Staffing Invoicing

$40-$1500+ per invoice cycle in fees, postage, and opportunity costs; up to 87-day payment delays industry-wide

Invoice Errors and Processing Inefficiencies Leading to Revenue Loss

$40 labor per invoice; $1500+ annual postage per provider; 87% cost reduction possible via automation

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