Employee placement agency

An employment agency can provide two types of employment placement services: regular or permanent placement and temporary placement.

With permanent placement, you receive a client job order (or you solicit an order if you have an excellent candidate to refer). You screen and refer the candidate for hiring by the client and you receive a fee for the placement. The employee, in this case, goes on the client's payroll from the beginning, unless they begin in temporary status for a probationary period.

With a typical temporary placement service, the employee remains on the agency's payroll, and the client is billed or the temp's work at a specified rate, which includes all taxes, benefits, etc., plus the agencies margin.

Since the temps are actually your employees, you have an obligation under state wage-payment laws and federal wage-hour laws to pay the employee for time actually worked within the time limit set by the state wage-payment law. Such limits are typically weekly.