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There are many benefits to hiring an employer of record

Posted on June 16th, 2014 Read time: 1 minutes

Highlighting the benefits of hiring a temporary worker through an employer of record, Missoula County agreed to pay former employees of its health center a total of $189,000 to settle wrongful discharge lawsuits, according to the Missoulian. Missoula County, located in Montana, was forced to pay after lawyers alleged the health center's executive director Kim Mansch "had established a hostile work environment through a culture of fear and intimidation through her management actions."

Mansch denied the allegations. As part of its settlement, hospital managers and leadership teams must attend training sessions about the Government Code of Fair Practices.

Whether the allegations were true or not, much of the hassle associated with firing employees can be avoided if companies simply hire temp workers. This does not mean it's okay to create a culture of fear and intimidation, but companies that hire through an employer of record may not have to face as many allegations like this, assuming their corporate culture is safe and good.

Hiring through a staffing agency is also a way to save money. Many states in the U.S. are beginning to consider raising its minimum wage, and the International Monetary Fund has recently asked the U.S. to raise its minimum wage, according to Market Watch. This would have the effect of making it more expensive to hire workers. But hiring temps tends to be a more affordable option for many companies.

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