CSP Quality Assurance & Compliance 2 — Questions and Answers
Question 1: A staffing firm discovers that a client has been directing temporary workers to perform tasks outside the scope of the original staffing agreement. What is the firm's primary compliance obligation?
- Ignore the issue if the client is satisfied
- Amend the staffing agreement to reflect actual duties being performed (Correct answer)
- Immediately remove all temporary workers from the site
- Bill the client at the original rate regardless of duties
Correct answer: Amend the staffing agreement to reflect actual duties being performed
The staffing firm must update the agreement to accurately reflect actual job duties to ensure proper classification, insurance coverage, and legal compliance.
Question 2: Under the FLSA, which of the following workers at a staffing agency is most likely to be classified as exempt from overtime?
- A temporary clerical worker earning $15/hour
- A light industrial packer working 50 hours per week
- A placed financial analyst earning $70,000/year performing true analyst duties (Correct answer)
- A receptionist earning $35,000/year
Correct answer: A placed financial analyst earning $70,000/year performing true analyst duties
The FLSA white-collar exemptions require both a salary basis test (currently $684/week) and a duties test, which the financial analyst role satisfies.
Question 3: A staffing company's internal audit reveals that I-9 forms for 15% of its workforce have missing Section 2 signatures. What is the best corrective action?
- Discard the incomplete forms and start over
- Correct the forms using a separate correction sheet and document the remediation (Correct answer)
- Terminate all employees with incomplete forms
- Continue operations and correct only if audited by ICE
Correct answer: Correct the forms using a separate correction sheet and document the remediation
USCIS guidance allows corrections to existing I-9 forms using a line-through method with initials/date, supplemented by a written remediation policy.
Question 4: Which quality metric is MOST useful for measuring a staffing firm's placement accuracy over time?
- Number of job orders received per month
- Assignment completion rate (assignments completed vs. started) (Correct answer)
- Total revenue generated per recruiter
- Number of candidates in the database
Correct answer: Assignment completion rate (assignments completed vs. started)
Assignment completion rate directly measures how well placements match client needs and candidate suitability, reflecting placement quality.
Question 5: A client requests that the staffing firm perform background checks only on candidates of a certain demographic group. How should the staffing firm respond?
- Comply if the client signs a waiver
- Refuse, as selective screening based on demographics violates Title VII (Correct answer)
- Agree but document the client's request thoroughly
- Implement the policy only for high-risk positions
Correct answer: Refuse, as selective screening based on demographics violates Title VII
Applying background check policies selectively based on protected characteristics violates Title VII's anti-discrimination requirements and exposes both parties to liability.
Question 6: What does a staffing firm's 'bill rate' typically include beyond the worker's pay rate?
- Only the recruiter's commission
- Base pay, employer taxes, benefits, workers' compensation, and margin (Correct answer)
- Just the markup percentage on top of wages
- Only mandatory employer payroll taxes
Correct answer: Base pay, employer taxes, benefits, workers' compensation, and margin
The bill rate covers the worker's gross pay plus all employer costs including FICA, FUTA, SUTA, workers' comp, benefits, and the firm's profit margin.
Question 7: Under the ADA, a staffing firm receives a request for reasonable accommodation from a temporary employee placed at a client site. Who is primarily responsible for providing the accommodation?
- The client employer exclusively, since they control the worksite
- The staffing firm exclusively, since they are the employer of record
- Both the staffing firm and client may share responsibility depending on who controls the relevant aspect (Correct answer)
- Neither party, since temporary employees are not covered by ADA
Correct answer: Both the staffing firm and client may share responsibility depending on who controls the relevant aspect
The EEOC's guidance indicates both the staffing firm and client may have ADA obligations depending on which entity controls the relevant employment aspect.
CSP Quality Assurance & Compliance 2
A staffing firm discovers that a client has been directing temporary workers to perform tasks outside the scope of the original staffing agreement.
What is the firm's primary compliance obligation?