I read with interest a series of articles posted on Workforce.com this week related to contingent workers. Specifically contingent worker hiring trends and the legal risks associated with how a company manages and treats independent contractors, or contingent workers vs. employees. In the process I learned a new term: Permatemp, defined as a contingent worker that has been in their position for an extended period of time functioning and appearing as an employee of the company where they are placed. Government labor statistics do not specifically track independent contractors but rather lump them in with all contingent workers, a category that includes the staffing industry and temporary help. According to a Government Accountability Office report, there were 42.6 million contingent workers in the U.S. as of 2005—almost a third of the entire workforce. What has happened over the past 20 years is that companies have embraced the temporary worker model as a way to get work done using trained staff paid by a 3rd party and not classified as employees. Hiring, payroll, and any benefits the contingent worker receives such as vacation, sick time, or a 401K plan are the responsibility of the hiring agency. Typically agency-provided benefits, if offered at all, are significantly less than those provided to full and/or part time employees of the company where the contractor is working every day. The model allows companies to increase or decrease their workforce with more flexibility based on the needs of the day and not incur the expensive overhead of training and employee benefits such as medical insurance or paid vacation or retirement plans. What these companies discovered is that many of the contractors were very good at their job and fit in with the corporate culture so when one project ended they kept them around for another, and another, and another. Soon they had phone extensions, access to company networks, security badges, email addresses, a fixed work location, and were included in company social functions, etc. For all intents and purposes they acted and appeared like employees of the company.