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Texas Staffing Agency doing business in California.

Dpalmer23 Dpalmer23 (New) New

I have a staffing agency in Texas. I used a LLC to form my company. I already have some nurse's that will be working for my company but they will be working in California. I just wanted to know what the rules are when it comes to staffing in California?

If they are on your payroll versus independent contractors, you will need workers comp. Otherwise, it is best not to ask too many questions. If you are using direct employees in California, overtime after 8 is a requirement unless the work unit has waived it. Things are easier with independent contractors - if you hire direct employees you will have some more hoops to jump through. It is best to operate below regulatory radar as much as possible until you are big enough that the risks become so great that you must cross every t.

I hope this isn't too late, but a few things you want to make sure of:

1. If you are doing W2, your business will need to be registered with the state. You will need to be able to pull California state taxes from your nurse's payroll and that will require a business license in California.

2. As referenced above, you will need workers comp. Usually State Fund is a new company's go to. They are expensive.

I'm a 20+ year recruiter based in CA (new to nurse recruitment) and would love to network if you like. Always looking for new people to work with in the industry. Ping me if there is anything I can do to help you. Good luck!

Also, if you choose the independent route, your nurses will need to be incorporated. State of CA pretty much considers 1099's against a Social Security number an employee. If a nurse files unemployment on you, you're in deep doo with the EDD. Just please be careful! :)

Thanks for posting! But I'm going to be disagreeable here. A business license is required for sales tax, not for withholding.

Nurses are fine as independent contractors. Agencies win against the IRS all the time. It is commonplace enough, particularly with local agencies. While nurses typically are not true professionals in terms of independent practice that is the hallmark of many professions, they are also not under the control of their direct employer, the agency, either. It is a complicated discussion though and one I explored thoroughly before starting my own agency.

If I'm wrong, that's great news! I just placed someone outside of my own state and had to file in that state, so was thinking CA was the same thing.

I've been audited on 1099's in California - but it was for IT, so perhaps there is a different requirement there. The state considered anyone paid via a timecard an employee as the agency was able to control pay, so I assumed it was the same in nursing. The other piece included that the independent was using the client's computer vs. their own tools - so be careful on those two points. I wouldn't want to roll the dice in this state, that's for sure! I've been staffing 20+ years, but new to this field, so I have a lot to learn on the industry. Loving it and loving the engagement on this site!

How big agencies and small agencies are very different. While every business wants to avoid regulations, larger businesses have more risk and greater reason to cross their tees. I do not have the perspective of a large business so honestly, I don't even know specific state rules. I legally bypassed many rules I know by not having W-2 employees.

I know a guy who started a successful agency in TX and sent many travelers to California. After around three years, some California State agency caught up to him and made him register. Yet they apparently did not communicate to other agencies so just the one is all he had to deal with.

I had thought it was workers comp that he had to do but I've had a couple conversations with California and they have no statutory oversight over non-California businesses sending contract employees to California. Kind of stunning actually. But the employers home state requires WC in all jurisdictions.

I'm looking to start a similar entity in New England. Ma and NH any and all direction is much appreciated.

Tks

MA is one of the (thankfully) rare states that requires agencies to register with the BON and allowable maximum bill rates are entered into law annually (but they are roughly market rates). Call them for details. As an out of state agency with never more than one or two travelers in MA, they told me the law didn't apply to me. If you are based in MA, it will be important to find out.

Google link for relevant law and rates. You want the first hit, a Word doc. You'll probably have to search MA.gov for more information.

MA is one of the (thankfully) rare states that requires agencies to register with the BON and allowable maximum bill rates are entered into law annually (but they are roughly market rates). Call them for details. As an out of state agency with never more than one or two travelers in MA, they told me the law didn't apply to me. If you are based in MA, it will be important to find out.

Google link for relevant law and rates. You want the first hit, a Word doc. You'll probably have to search MA.gov for more information.

Great thanks for the info! I'm starting at ground zero and not sure of my first steps to make this work... but I'll keep looking until I find them :-)

Tks!

If you Google my screen name plus "independent nurses 108" you will find a blog on how to start an agency.

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