CSP Risk Management & Mitigation 4

Question 1

A staffing firm learns that a client has misclassified placed workers as independent contractors to avoid payroll taxes. What is the firm's greatest exposure?

Accepted Answer

IRS joint liability for unpaid employment taxes and penalties

Answer

Staffing firms that knowingly participate in or benefit from worker misclassification can face joint IRS liability for unpaid employment taxes.

Question 2

Which element is most essential in a staffing firm's written safety orientation program for temporary workers?

Accepted Answer

Site-specific hazard information, emergency procedures, and worker rights under OSHA

Answer

OSHA's Temporary Worker Initiative requires that temps receive site-specific hazard training covering the actual risks they will encounter.

Question 3

When a staffing firm's placed worker is involved in a workplace fatality, which agency is most likely to conduct the primary investigation?

Accepted Answer

The Occupational Safety and Health Administration (OSHA)

Answer

OSHA has primary jurisdiction over workplace fatality investigations and will typically cite both the staffing firm and the host employer.

Question 4

A staffing firm wants to limit its liability when a client terminates a placed worker. Which contract provision offers the most protection?

Accepted Answer

An indemnification clause requiring the client to defend and hold harmless the staffing firm for client-directed terminations

Answer

An indemnification clause obligates the client to defend the staffing firm against claims arising from the client's own termination decisions.

Question 5

Under OSHA's multi-employer citation policy, a staffing firm may be cited as a 'sending employer' even if it did not control the hazard. What is the key factor that determines this liability?

Accepted Answer

Whether the staffing firm knew or should have known of the hazard and failed to take feasible corrective action

Answer

OSHA cites sending employers when they had actual or constructive knowledge of a hazard and failed to take corrective steps within their control.

(CSP) Certified Staffing Professional Practice Test

(CSP) Certified Staffing Professional Practice Test

CSP Risk Management & Mitigation 4