Home Health What are the legal issues for medical staffing agencies?

What are the legal issues for medical staffing agencies?

What are the legal issues for medical staffing agencies

Staffing companies and agencies provide a link between the employees seeking work and companies requiring a qualified workforce. Staffing agencies work at an intermediary level, fulfilling the requirements and needs of clients and work staff.

Since the service they provide requires professional ethics and a code of conduct, their responsibility ceases on the day of the appointment and carries no accountability for future obligations and commitments.

Thus, it is significant for the staffing agencies to be knowledgeable about:-
●The employee benefits
●other legal problems around different career fields.

Staffing agencies, on their part, conduct detailed research on the employees and workforce before suggesting it to the prospective hiring companies.
Here, in this article, we will be discussing some of the legal issues that staffing agencies face in the medical field.
So if you are looking for leading medical staffing, you have landed at the right place. Check this site for leading medical staffing, San Diego.

Some legal issues faced by medical staffing agencies

Medical Employee Misclassification

Employees working for the company shall be classified based on wage and reporting purposes. Based on wages, the classification can be done as-

  • hourly nurses or employees
  • Salary nurses or employees

However, the medical employees working directly for the company are given an edge over others when it comes to fulfilling the federal requirements. For example, mandatory healthcare insurance for about 50 medical employees. So, to stand upon these mandates, some medical institutions willingly prefer to classify some employees as independent contractors.

Subsequently, they approach the medical staffing agencies with the same mindset. However, these types of activities involved in classifying the employees as independent contractors are considered illegal acts, bringing legal consequences to both the agency and the clients.

Background checks of Medical Staff

All the medical staffing agencies are required to perform discrimination tests and background checks. It is also a demanded service from most of the clients. The idea is to make sure that the Medical staffing agency is not bringing any unqualified or incompetent employees to the hospital.

However, in a survey, it was found that several hospitals and medical institutions conduct hiring tests to filter out people of minority classes.

For example, clients often ask to test the credit history of the prospective employees and use it as an excuse to discriminate amongst potential staff.

Such an act is offensive and harsh for the staff, and they can bring arbitrary in-between against this.

Thus, Medical staffing agencies shall be aware of such possibilities and take steps to prevent such filtration.

Immigration Matters

Certain staffing agencies are working exclusively for either the normal residents or the foreign residents. At times, the employee chosen as a potential staff might need to travel and therefore must have different kinds of visas. Especially for those agencies who hire temporary and non-citizen workers, Immigration issues are something they have to frequently deal with.

Such agencies have to be very careful with the mandatory immigration employee requirements, and any small violation, whether intentional or not, can lead to severe penalties and fines.

Contracts with clients

Every time a medical staffing company gets a new client, a whole process of signing the contract and agreeing to the stipulated terms and conditions, after several negotiations, takes place. It is not obvious for both the parties to be on the same page always, and there are some unescapable disputes. Any type of dispute can arise around any contract and clients.

To settle the disputes then comes the requirement of a legal council. This calls for the need of having a legal council by the staffing agencies, capable of making the contacts and handling the disputes. They have to make sure that the contracts are all enforceable and any violations would be properly dealt with.

In addition to this, the medical staffing agencies must also be aware of the legal traps that exist. This is a must for the staffing agencies so they can take preventive measures and try to avoid disputes as much as they can. Knowing about the same can help avoid expensive breaches, keeping peace among the employees as well as the clients.


The facts and information mentioned above have addressed the legal issues that a medical staffing agency usually comes across. Since the whole process of recruitment is a daunting one as it involves going through a lot of steps from preliminary elimination to the final selection, the business often avoids doing it all by themselves and has to always opt for staffing agencies. Therefore, it is essential that you choose the right agency abiding by the ethical requirements and fully equipped with the right knowledge about the legal and illegal consequences. To ease your search we have accumulated the list of leading medical staff.