Hiring Temporary Workers through Third-Party             UPPS No. 04.04.22

Service Providers                                                                 Issue No. 1

                                                                                                Effective Date: 04/30/2010

                                                                                                Review: September 1 E4Y





01.01  This UPPS describes the policies and procedures for hiring temporary workers through a contracted third-party service provider.


01.02  The provisions of The Texas State University System Rules and Regulations, UPPS No. 03.04.04, Processing, Approving, and Executing Contracts, Purchases, and Agreements, and UPPS No. 05.02.02, Texas State Purchasing Policy, apply to soliciting, awarding, and executing contracts with third-party service providers.


01.03  The provisions of this policy apply to expenditures from all funds regardless of source.


01.04  The process for obtaining temporary workers from a third-party service provider falls outside of normal university employment policies and procedures.




02.01  Temporary Workers are persons employed through a contracted temporary service provider. 


02.02  A Temporary Service Provider is a third-party vendor who provides qualified temporary workers. The service provider is paid a pre-established fee for providing this service. The temporary worker is an employee of the service provider and subject to all applicable policies and procedures of the service provider including those related to pay and benefits.


02.03  A Bill Rate is a mutually agreed upon fee rate between the university and third-party service provider. This rate is charged in addition to the temporary worker’s hourly amount.


            EXAMPLE: Temporary worker is obtained at an hourly rate of $10.00. The temporary service provider charges a service fee of 35% in addition to the hourly rate of $10.00 for a total bill rate of $13.50 per hour.




03.01  Prior to using a temporary worker, the account manager must determine the best option for accomplishing the department’s workload and whether using a temporary worker is cost effective.


03.02 Human Resources will negotiate all temporary worker service agreements with temporary service providers. Service agreements must include bill rates and proof of minimally acceptable insurance coverage. Any service agreement for temporary workers is also to include the requirement for minimum background checks as appropriate for the position the temporary worker may fill, in accordance with The Texas State University System’s “Rules and Regulations,” Chapter III, Section 10, “Contracts, Purchases and Agreements.”


03.03 The director of Contract Compliance will review all temporary worker service agreements negotiated by Human Resources with temporary service providers for compliance with university contracting and purchasing requirements. After review, the director of Contract Compliance will forward contracts to the vice president for Finance and Support Services (VPFSS).


03.04 The VPFSS must approve all temporary worker contracts negotiated by Human Resources with temporary service providers. No hiring manager may retain temporary service worker until (1) the VPFSS approves the established service agreement with the provider or (2) the VPFSS grants an exception waiver.


03.05  Human Resources has service agreement oversight for the administration of any agreement for temporary workers from a third-party service provider in accordance with UPPS No. 03.04.08, Administration and Management of Major Contracts for Goods or Services.




04.01  The Human Resources website publishes a list of approved vendors and bill rate percentages. Unless the hiring manager has obtained an approved waiver from the VPFSS, he or she must hire a temporary worker from an approved provider.


04.02  The hiring manager may accept the temporary worker selected by the temporary service provider or may choose to interview candidates identified by the service provider before making a selection.


04.03  In order to arrange for a temporary worker, the hiring manager will choose and contact an approved provider, arrange with the provider to have a temporary worker report to work, and approve the work time for the temporary worker.


04.04  To accomplish payment to the provider for the temporary worker’s services, the hiring manager must complete a Temporary Personnel Employment Form which is located in BOBCATalog.




            05.01  Reviewers of this UPPS include the following:


Position                                                         Date


Director, Human Resources                      September 1 E4Y


Director, Contract Compliance                  September 1 E4Y


Director, Purchasing                                   September 1 E4Y




This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.


Director, Human Resources; senior reviewer of this UPPS


Vice President for Finance and Support Services