A temporary employee is hired for a limited period or project, either directly or through a staffing agency. Short-term does not mean fewer rules: hours still have to be recorded and paid correctly.
| Direct temp | Agency temp | |
|---|---|---|
| Who pays wages | Your company | The agency |
| Who directs the work | Your company | Your company, day to day |
| Cost | Wage plus your payroll costs | Agency bill rate, which includes its markup |
| Hiring speed | Your own process | Usually faster |
| Time records | Your system | Agency timesheet, often confirmed by your site |
For seasonal peaks that repeat every year, see seasonal employee.
A warehouse brings in 15 agency temps for an 8-week peak. The agency bills $26 an hour per temp; a direct hire at the same job earns $18 plus payroll costs. The agency handles payroll from timesheets the temps fill in.
EZTime digital HR forms let you send, sign and file employee documents online.
In week 3, the site manager compares agency invoices with the site’s own clock-in records. Agency timesheets show 40 hours for most temps every week; the site records show anywhere from 34 to 46. Some temps are being billed for hours they did not work, and others are not being paid for overtime they did.
From week 4, the agency invoices from the site’s clock-in data, approved weekly by the site manager. Billing drops by a little, and three temps get overtime they were owed. Both companies now have one set of hours to defend.
Temps are often thrown into work with less training than permanent staff, which is when accidents and mistakes happen. A short, standard onboarding for every temp helps: site safety and emergency procedures, the specific hazards of their task, who their lead is on each shift, how to clock in, and where to find break areas.
Write it as a checklist and have each temp sign it on day one. If the temp comes through an agency, agree in the contract who covers what, and keep your own record of the site-specific training you gave.
A dental office’s billing coordinator goes on a 12-week leave. The office hires a direct temp for 12 weeks at $24 an hour, 32 hours a week, about $9,216 in wages plus payroll costs.
Before the leave, the coordinator writes a one-page procedure for each recurring task and spends 2 days training the temp. The office tracks claims submitted per week; it stays within 5% of the normal level during the leave. When the coordinator returns, the procedures stay in use as backup for future absences.
Seasonal employees work during a predictable peak every year. Temporary employees can be hired for any limited need, such as a project or covering a leave.
Non-exempt temporary employees are owed overtime like other employees. In agency setups, the contract should say who pays it.
The agency is usually the employer of record, but the client directs the work and can share responsibilities in some situations, such as safety.
Yes. Agency contracts often include a conversion fee or a minimum period before the client can hire directly.
It depends on the employer, the plan rules and the laws that apply, such as paid sick leave laws in some states. Agency temps get any benefits through the agency.
Your policy or the agency contract usually sets the length. Long temporary assignments can raise questions about benefits eligibility and how the person is classified, so review them periodically.
Announcements by location, department or role, and a company feed with surveys and read confirmations, so frontline staff see the same news.