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Human Resources/Salaried to temp change

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Question
I currently work for a staffing agency as an internal employee, not as a contractor. I am exempt/salaried. The company has just merged with another larger staffing agency. The new owners want to convert me to a contract hourly employee so I will no longer be eligible for any benefits. In effect, what they are doing is the new parent company is hiring me as a temporary contractor, then leasing me back to the company I currently work for. Do I have to accept this? Is this even legal?

Answer
This does not sound right to me. I do not know a lot about mergers, however, I think what should happen is the company you are working for needs to terminate you. Than you can either go to work for the new company as a temp contract employee or you can find another job somewhere else. Since it is not your fault you should be allowed to draw unemployment until you find another job.

I would call your local department of labor and talk to them about this situation I think they are not handling it correctly.

Shirley

Human Resources

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Shirley McAllister, CPP, PHR

Expertise

I can answer questions pertaining to Compensation, Health Benefits, Retirement Plans, Payroll,Payroll taxes, Employee selection, Employee Termination, Training, and Employee Incentives. I have offices in U.S., Canada, UK, South Africa,Australia and NZ. I am most confident in the U.S. and Canadian but have knowledge of the internationals. I do not have extensive knowledge of South Africa, Australia and New Zealand. I do have some Human Resource Knowledge in those areas. Please do not ask me homework questions, I do not have time to answer them.

Experience

I currently hold both the U.S. and Canadian Payroll Certifications. I currently hold the SHRM PHR certification. I have worked in the Human Resources area with high emphasis on compensation and benefits for 25 years at the same company. My company is an international company and I work with our International offices whenever there is a Human Resource area needing addressed. I volunteer on the American Payroll Association hotline and have for the last 10 years or so. I answer many questions each week for other payroll and HR professionals, mostly on taxes, benefits and compensation issues. I have been the trustee for our 401K plan for Retirement benefits and our 125 Cafeteria Plan for Health Insurance benefits.

Organizations
SHRM, National APA, National DOLEA, State National Mentoring Network I.O.M.A. Advisory Board

Publications
I.O.M.A. BNA

Education/Credentials
Boise State University Human Resource Certificate Program PHR through SHRM CPP through American Payroll Association Payroll Administrator and Payroll Supervisor certification through Canadian Payroll Association Published writer of Payroll and Benefit articles in a payroll Publication 25 years experience in an International Company

Awards and Honors
Citation of Merit 8 years in a row for hotline service for A.P.A. Honor Award for child mentoring service through RSVP and National Mentoring A "Pat on the Back" award for outstanding leadership as a Youth Group Leader by "The Salvation Army." Runner up for Employee of the Year at my Company twice and Employee of the month 4 times.

Past/Present Clients
I used to answer questions on Ask.com when they had a similar quesition and answer section. I volunteer for APA hotline I also belong to several HR forums when I often answer questions

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