Permatemps are people who essentially work as temps in a company, but do so for such an extended period, and are treated as permanent employees. They work either with a staffing firm or as an independent contractor. There are approximately three million permatemps in the workforce.

Recently, there has been an increase in the number of “permatemp” lawsuits due to unclear policies regarding benefits. Recent examples include Microsoft and Hewlett-Packard. In Microsoft’s case, for which they paid $97 million, the company did not allow permatemps to purchase company stock. Attorneys argued that, as permatemps, they should be entitled to “common law” benefits.

The plaintiffs in Hewlett-Packard’s case claim the company has unfairly excluded permatemps from benefits such as vacations and holidays. Additionally, an allegation was made that executives had attempted to destroy evidence showing they were violating the law in the same way as Microsoft.

Temps were originally hired to save companies money by reducing the number of full-time employees, and studies show that many permatemps prefer their employment situation. Following multi-million dollar lawsuits, though, companies are beginning to establish clear guidelines regarding benefits for their workers. Government agencies may be more susceptible to litigation because they’re subject to more stringent rules, even though they are not governed by the Employee Retirement Income and Security Act like most companies.

Attorneys for plaintiffs contend that federal rules are weak and courts have been sympathetic to corporations regarding this issue, not employees. However, according to the article, the main concern is the need to enact public policy for a workforce that is becoming increasingly freelance-oriented.