Temp Agencies and Workers' Comp Employer Penalties

Everyone knows what a temp agency is, but few know that it has an official classification. The North American Industrial Classification System classifies temp agencies as Temporary Help Services.

A small businessman or woman in New York does not have to carry a workers' compensation policy for temporary workers hired from a temp agency. Workers hired on a temporary basis from an agency are actually employees of the agency for the purpose of workers' compensation.