KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** using staffing agency employees June 2, 2025 ************************** using staffing agency employees ************************** We purchased a couple of your contracts 2 weeks ago and signed up to the Concierge program. Glad I did! I have a situation I need advice on. We are currently working on the Related Properties Project where they are putting up 2 buildings. We are working as a subcontractor for a bigger security company onsite. We have our own field technicians but because of accelerated timelines we are using a staffing agency to provide additional help. We have a good long standing relationship with the staffing agency. On Monday one of the staffing agency employees was injured after falling and cut the back of his head open. He either fainted or had a seizure and fell. He was found seizing by someone walking by. He went to the hospital, received 7 stitches and was cleared of any issue by the way of multiple scans and tests. He stayed overnight and was released with a return to duty light work order. The staffing agency is filing the claim under their workmans comp insurance. The project is a project where the owner is providing insurance but we are still required to be enrolled with their insurance custodian. We were fully enrolled in the before the project started. We did not however enroll the staffing agency. Alliant is requiring us to fill out the a C-2F form. This form needs to be filled out by the staffing agency as the injured is their employee and under their insurance. Since the staffing agency is not enrolled in OCIP Related is requesting immediate enrollment, a copy of the work release form and the contract between the staffing agency and Streamline. The agreement with the staffing agency was generated from the staffing agency and not Streamline. From what I can gather the agreement doesn't protect us from a potential lawsuit. If you could advise on this, I would appreciate it. ******************** Response ******************** There are multiple questions that raise issues, some of which you are concerned about and others I don't think you have considered. You are a subcontractor. You are undoubtedly required to comply with all the GC's requirements in the main contract and any additional requirements in the GC's subcontract. Carrying insurance indemnifying the owner, GC, probably architect and perhaps others, is likely. Carrying Workers Compensation insurance is a given. Your issue is further complicated because you are not using your own employees, you "lease" them from another company. This other company is essentially your subcontractor, a "sub-sub contractor" to the GC. This company is unaware of any GC requirements; it only leases you the employees. Your use of the employee leasing company may violate your subcontract. If it doesn't then, as you have now found out, your "subcontractor" will be required to comply with all the requirements you are faced with, including all the insurance requirement. There's no way around it. An issue you haven't mentioned is licensing. This is a New York project and all "employees" must be "documented" by the New York State Department of State, Division of Licensing Services. The employee leasing company does not have the Alarm Installer License and its employees are not "documented". You are in violation of the licensing law. If you use the leased employees you should document them within 24 hours of them being assigned to you. Thanks for joining the Concierge Program. You saved $600 for this advice alone; well worth your participation in the Program. ********************* STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
