Temporary Employment has temporary employees who assist employers in meeting business demands yet allow the employer to avoid the cost of hiring a regular employee. If you are a temp and show a good work ethic, fit the company culture, learn quickly, and don’t need as much micromanaging, you will probably receive an employment offer. 

Although, hiring temporary employees serves as a massive advantage to many companies in the industry today. The main reason is any can save from hiring temps rather than taking on the cost of a regular employee.

In some instances, the temporary employee may want to work part-time without committing to a full-time job within a company. For example, temporary employees pursuing a career as a freelance writer or developing their product to start a company are promising prospects as temporary employees.

Why Hire a Temporary Employee

Business purposes include seasonal customer demand, temporary surges in manufacturing orders, sick or maternity leave employees, and short-term, clearly defined work such as a census worker.

Temporary employees allow employers to maintain a cushion of some job security in employment for regular workers. Employers can let temporary employees go first in a business or economic downturn.

Hiring a Temporary Employee

Temporary employees work part or full-time. As a result, they rarely receive benefits or the job security afforded regular staff. A temporary assignment can end at any time, depending on the employer’s needs. In other ways, temporary employees are often treated like regular employees and attend company meetings and events.

When using temporary employees or seasonal employees, do not feel that you are to hire them just because they’ve worked for you for ninety days or more. Instead, examine the success of a temp at thirty days. If you are not confident that they will make a superior employee, replace them with another temp. Your supervisors tend to settle for good enough because the temp comes to work every day and does the job.

The supervisor sees this as an opportunity not to train new temps constantly, which is appreciated. It is not, however, the way to obtain an excellent staff. We tell supervisors they may hire the top 5% of their temporary staff members – only the very best.

Employers will experience increased difficulty scheduling temporary employees due to the Affordable Care Act (ACA) rules. Here’s a summary of how it affects how you schedule temporary employees and how many days they can work before they are eligible for health care through the temporary employer.

Temporary employees are hired directly by the company or from a temporary staffing agency. If an agency provides a temporary employee, the employer pays a fee over and above the compensation collected by the employee.

Temporary employees who work through an agency may have paid benefits such as health care insurance. These employees remain the agency’s employees, though, not the company’s employees where they are placed.

Note: They are also Known As temps, contingent workers, contract employees, consultants, seasonal workers.

How Taking a Temporary Job Impacts Unemployment Benefits

Working as a temporary worker is a great way to earn extra money when you’re out of work and short on cash. In addition, temp roles can serve as an opportunity to test out a new market or job role when the applicant may not have enough experience for a full-time position.

Temporary work can also be an excellent way for unemployed individuals to make a positive impression upon an employer and consequently be hired for a more permanent job in the future. However, many unemployed workers are financially strapped and fear the loss of their unemployment benefits if they take on a temporary or contract position.

Reduction or Elimination of Unemployment Benefits

In general, your unemployment benefits will typically be reduced or eliminated during the period of your temporary work, depending on the level of pay for your temp job. However, usually, you will still be entitled to the difference between your temp pay and the value of your unemployment benefits if you earn less than the total amount of your unemployment benefits.

For example, if you earn $200 and are entitled to $400 in unemployment benefits, you will typically still receive $200 of unemployment compensation. However, if you make $400 or more in that temp job, then your help would be suspended.

Your benefits will generally be based on the preceding period of temporary work. However, state employment laws vary, so temporary employees may still qualify for unemployment benefits once the temp job has been completed. 

Eligibility for Unemployment Benefits After Temporary Work

Eligibility for unemployment benefits is based on several factors, such as the duration of the employment, the wages earned, and the reason for the unemployment and reduced hours.

As long as you are unemployed due to no fault of your own and actively seeking work, you may be eligible for unemployment benefits. However, job seekers must typically accept suitable employment, so turning down an opportunity can disqualify them from claiming benefits. 

Seasonal Workers

Like temp workers, seasonal workers are employed for short, specific times of the year due to weather-related or tourist-related industries. In some states, seasonal workers may not meet the criteria to be eligible for unemployment benefits.

Independent Contractors

Independent contractors typically cannot claim unemployment benefits like temp and full-time workers can. However, expanded unemployment benefits were available to self-employed workers, gig workers, and independent contractors during the pandemic.

Temporary Work and Total Unemployment Benefits

The amount of compensation you can receive through unemployment benefits is typically calculated based on your wages during a 12-15 month period leading up to your first day of unemployment. This time frame is considered the “base period.” Therefore, it is advantageous to maintain employment regularly during this period, lowering the total amount, which lessens your eligible compensation rate.

Check the details of how to handle it with your state unemployment office.

Quitting a Temporary Job

If you quit a temporary job without a just cause, you will generally not be eligible to resume benefits. However, if you complete the term of your temporary work, you will often be able to resume unemployment benefits as long as your benefit period hasn’t expired.

The information contained in this article is not legal advice and is not a substitute for such advice. In addition, state and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law.