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From UNICO HR Solutions – Benefits and Hiring a Former Temporary Worker

Question: What is the waiting period requirement for benefits after hiring a long-term temporary agency worker as a regular employee?
Answer: A temporary agency employee is not an employee of the contracting company; he or she is employed by the agency and would be subject to the agency’s compensation and benefits policies as an employee of that agency. The period of time that the agency worker worked for your company as a temporary employee before he or she was hired on a regular full-time basis would not meet the definition of an “active employee” in satisfying the waiting period requirements under your group health plan. Upon hire with your company, this employee would need to meet the eligibility requirements of the plan including the waiting period required of all regular employees.

If you are considering waiving the waiting period requirements to include the time he or she worked as a temporary agency employee, please review your plan requirements and consult with your broker or legal counsel.

Take time to find a reliable resource you can depend on. UNICO HR Solutions can be your trusted resource to help you stay compliant and avoid many of these mistakes so you can focus on your day to day operations. This will help you become more profitable and having productive and happy employees is a key to that. UNICO HR Solutions have the HR experts that can help you.