[Congressional Record Volume 145, Number 89 (Tuesday, June 22, 1999)]
[Extensions of Remarks]
[Page E1354]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INTRODUCTION OF THE PROTECTION FOR TEMPORARIES IN THE WORKPLACE 
                          LEGISLATIVE PACKAGE

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                            HON. LANE EVANS

                              of illinois

                    in the house of representatives

                         Tuesday, June 22, 1999

  Mr. EVANS. Mr. Speaker, I am proud to introduce ``Protection for 
Temporaries in the Workplace,'' legislation designed to address the 
lack of equity and economic security so prevalent among today's 
temporary workforce.
  Our strong economy has yielded more jobs for Americans than at any 
other time in recent history. Indeed, joblessness is now far below what 
many economists thought could be sustained in a modern economy. Yet, 
the changes in the labor market over the past generation has raised 
concerns with job security, workplace protection and employee benefits. 
Once secure, a growing sector of today's workforce no longer has the 
luxury of working for the same employer until retirement.
  Today, many full-time permanent jobs are being replaced by temporary 
positions as ``flexibility'' becomes a driving force sustaining our 
economic expansion. According to the National Association of Temporary 
Staffing Services, over 10 percent of today's workforce is temporary. 
These temporary jobs rarely offer adequate health or pension benefits. 
Additionally, many employees are misclassified as ``temporary'' when 
they are in fact, full-time employees. Many employment law protections 
are antiquated and often leave temporary workers no recourse against 
abusive employer practices. This is not only bad for the employees, but 
also bad for employers who do the ``right thing'' by taking 
responsibility for their workers by putting them at a competitive 
disadvantage with companies who skirt the law.
  The temporary work industry is flourishing in large part because 
employers are turning to these work arrangements to cut costs and raise 
revenues because they can exclude employees from benefit plans and deny 
them protection under labor laws. This is creating a new working 
underclass and lowering our national living standard.
  Although temporary work provides flexibility and independence for 
some Americans, others resort to ``temping'' only because they have not 
been able to secure permanent, full-time jobs. According to a report by 
Dr. Helene Jorgensen of the 2030 Center, temporary employees lack many 
of the benefits and protections that are standard with permanent 
employment. According to the report, only 5 percent of temporary 
workers age 25-34 have health insurance through their employer, whereas 
50.5 percent of the general population is covered. In addition, these 
temporary employees earn on average 16.5 percent less than they would 
have earned working in a regular job.
  More alarming are the instances in which companies regularly hire 
``temporary'' employees for extended periods and continually exclude 
them from any benefit plans that they offer their ``permanent'' 
employees. In many cases, temporaries are performing the same work 
alongside a ``permanent'' employee, yet are taking home lower pay and 
have no access to health, vacation, or pension benefits. Employers 
regularly use this practice of hiring ``Permatemps'' to keep the costs 
of their benefit plans at a minimum.
  My legislative package will remedy these situations, and prohibit 
employers from evading their legal and moral responsibilities to their 
employees, without placing a mandate on America's businesses. 
Businesses are not required to provide benefits for temporary 
employees, but are prohibited from using underhanded tactics to exclude 
full-time employees who would be otherwise eligible to participate in a 
benefit plan.
  The ERISA Clarification Act, amends the Employee Retirement Income 
Security Act of 1974 (ERISA) to prevent employers from misdesignating 
employees as ``temporary'', who are otherwise eligible for health, 
pension and other employee benefits.
  Specifically, the bill defines ``Year of Service'' in ERISA to 
include all service for the employer as an employee under the common 
law, regardless of how or where the worker is paid--through an 
employment agency, payroll agency, temporary help agency or staffing 
firm.
  The Equity for Temporary Workers Act, provides additional protection 
in the workplace for temporary employees by prohibiting discrimination 
in benefit plans that are not governed by ERISA, requiring temporary 
employees to receive equal pay for equal work and amending OSHA to 
ensure that employers are responsible for the health and safety of all 
employees at the worksite--not just those who are ``permanent.''

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