The Alabama Staffing Association took the initiative and worked with the Alabama Department of Industrial Relations to make the following ruling possible.
After three (3) years of negotiating with the DIR, your Association was able to change this rule.
As stated by former ALSA president Dan Sinas this change has saved thousands of dollars for staffing companies in Alabama.

ALABAMA DEPARTMENT OF INDUSTRIAL RELATIONS
ADMINISTRATIVE CODE

RULE

Division:Unemployment Compensation
Chapter:Benefits
Page:1 of 3

480-4-3-.37 Alternative Staffing

(1) Definitions – The following definitions will be used in applying the provisions of this Administrative Rule.

(a) Temporary employee. A person employed through a temporary help services firm to support of supplement the existing work force of a client company in special situation such as employee absences, temporary skill shortages, seasonal workloads, and special assignments and completion of the task or function.

(b) Temporary help services firm. A firm which services consist only of:

1. recruiting and hiring their own employees;

2. finding other organizations that need the services of those employees;

3. assigning those employees to perform work at or services for the other organizations to support or supplement the other organizations’ workforces, or to provide assistance in special work situations such as, but not limited to, employee absences, skill shortages, seasonal workloads, or to perform special assignments or projects, and

4. Customarily attempting to reassign the employees to other organizations when they finish assignment.

(c) Professional Employer Organization (PEO). A entity engaged in the business of providing professional employer services through one or more professional employer organization arrangements regardless of it’s use of the term professional employer organization, PEO, staff leasing company, registered staff leasing company, employee leasing company, or any other name.

(d) Good Cause connected with work. Substantial reason; just ground for such action; adequate excuse that will bear the rest of reason; and always the element of good faith. A test of good cause is whether it is reasonable when measured by what the average or normal worker would have done under similar circumstances.


480-4-3-.37Page 2 of 3

(2) Voluntarily Leaving Work

(a) As further evidenced in Code of Alabama, 1975 §25-4-78(2), an individual is disqualified or benefits if the individual left his or her last work voluntarily without good cause connected with the individual’s work.

(b) A temporary employee of a temporary help services firm is considered to have left work voluntarily if the temporary employee does not contact the temporary help services firm prior to close of business on the first business day following separation from the temporary help services firm’s client company. The temporary employee has the burden of establishing a good cause connected with work for the failure of timely contacting the temporary help services firm. Voluntarily leaving work, failure to make contact and/or establishing a good cause for such failure will be adjudicated in accordance with Code of Alabama, 1975 §25-4-78(2). This required contact for job reassignment at the completion of an assignment or any other separation will allow the temporary help services firm an opportunity to reassign a temporary employee to employment opportunities or other ongoing assignments. This establishes an ongoing employment relationship that will be valid until close of business on the first business day following the temporary employee’s separation. A temporary employee is not considered to have left work voluntarily under this subsection unless:

1. the temporary employee has been advised, and

2. there exist a written record, that the temporary employee is obligated to contact the temporary help services firm by close of business on the day following completion of assignments. The method used in contacting the temporary help services firm. Notification the Unemployment Benefits may be adversely affected by failure to report as directed, should not be made in a manner to deter employees from filing a claim for Unemployment Benefits as “Any agreement by an employee to waiver or release his rights to benefits or any other rights under this chapter shall be void.” (Code of Alabama, §25-4-138).

(c) If the individual reports to the temporary help services firm as required in this administrative rule and no additional employment is offered on or before the close of business on the first business day following a separation from the temporary firm’s client company, an employment relationship will no longer exist between the individual and the temporary help services firm following the assigned time period of one business day following a separation will be treated as an offer for new employment whereby if the claimant refused the offer, suitability of the job will have to be established and adjudicated under Code of Alabama, 1975 §25-4-78(5.)

Rule 480-4-3-.37Page 3 of 3


(d) Should a claimant report as required by this Administrative rule and refuse to accept a new assignment on or before close of business on the first business day following day following a separation from the temporary firm’s client company, and the offer or employment is deemed suitable by the Department of Industrial Relations, the individual will be considered to have voluntarily quit his employment as further evidenced in the Code of Alabama, 1975 §25-4-78(2).

(e) Employees who report to the temporary help services firm as required and are offered and accept employment under this subsection, must report to work as directed. Unemployment Benefit claims of those employees who accept the new assignment and fail to report to work as directed will be adjudicated under the Code of Alabama, 1975 §25-4-78(2).

(f) The rule shall be immediately null and void upon;

1. Determination by either the U.S. Department of Labor (DOL) or the appropriate court of competent jurisdiction that this rule has the effect of placing this state out of compliance with Federal Unemployment Compensation Law or,

2. Determination that relief from benefit charges granted under this rule has adversely affected the statewide tax rate schedule and/or shared cost of Alabama employers.
Author: Brent Langley, UC Section Supervisor, Unemployment Compensation Division Statutory Authority: Code of Alabama, 1975 §25-4-78, & 25-4-138.
History: Effective October 1, 2005.