Workers' Comp & Employement Structures for California Staffing Agencies
Sixth Man evaluates and advises on multiple Workers’ Compensation and employment structures based on each agency’s operational needs, risk profile, and long-term goals—rather than forcing a predefined solution.
Industries We Proudly Serve
Some Insurance Carriers shy away from businesses that pose a greater risk of injury. Much like our customers, we are not afraid to roll up our sleeves and get our hands dirty
Contractors & Construction
- General Builders
- Roofers
- Construction Clean Up and Janitorial
- Framers & Rough Carpenters
- Tree-Trimmers & Landscapers
- Demolition Contractors
- Remediation and Abatement (Asbestos, Mold & Lead)
- Structural Iron & Steel
- Solar Contractors
- Specialty Contractors (CSLB D Classifications)
Staffing Agencies (by client industry)
- Wholesale and Warehouse (including equipment operators)
- Manufacturing
- Drivers/Transportation
- Cannabis
- Event Staff & Security
- Hospitality (including restaurants)
- Construction
- And many more
Health and Human Services
- Detox & Rehab
- Caregiving
- Hospice
- Senior Living Communities
- Shelters for Abused/Battered
Security Guard Services
- Armed Guard
- Unarmed Guard
- Event Security
- Patrol Guards
- Private Investigators
- Alarm Companies
Trucking & Transportation
- Local & Long Haul
- LTL Carriers
- Dry Van
- Flatbeds
- Tankers
- Hazmat
Core Workers’ Compensation Structures
Different Workers’ Comp structures serve different operational and risk profiles. Understanding when each structure applies is essential to managing cost and compliance.
Traditional Workers’ Compensation
Often used by agencies seeking direct carrier relationships, predictable coverage terms, and long-term control over claims and compliance.
Deductible Workers’ Comp Programs
Designed for agencies with stronger loss history and risk controls, offering reduced premiums in exchange for shared claims responsibility.
Pay-As-You-Go Workers’ Comp
Integrates Workers’ Comp premiums with payroll to reduce upfront costs and minimize audit exposure.
Employment & Administrative Models
Staffing agencies may utilize administrative or employment structures to manage risk, cost, and compliance. Each model carries tradeoffs that must be evaluated carefully.
No single model fits every agency. The right structure depends on control requirements, margin sensitivity, and long-term operational goals.
Professional Employer Organization (PEO)
Used to centralize payroll, HR, and Workers’ Comp under a co-employment model.
Administrative Services Organization (ASO)
Provides administrative support while allowing agencies to retain employer control.
Employer of Record (EOR)
Often used for rapid deployment or compliance coverage, with higher cost tradeoffs.
Payroll & Operational Infrastructure
Workers’ Comp decisions are closely tied to payroll systems and operational infrastructure. Sixth Man supports agencies in aligning these components for efficiency and compliance.
- Payroll processing & integration
- Timekeeping & workforce tracking
- HRIS platforms
- Payroll funding & factoring
- Staffing CRM & ATS support
Risk, Claims & Compliance Support
Effective Workers’ Comp management extends beyond policy placement. Ongoing claims oversight, safety programs, and regulatory compliance are critical to protecting margins and client relationships.
Support includes claims strategy, safety planning, WCIRB compliance, COI management, and audit readiness.
How Solutions Evolve Over Time
Focus on compliance, cash flow management, and foundational Workers’ Comp coverage.
Shift toward cost optimization, structure evaluation, and improved risk controls.
Emphasis on long-term structure, multi-state readiness, and margin protection.
Ready to Optimize Your Staffing Agency’s Workers’ Comp?
Schedule a free Workers’ Comp and employment-structure review. We’ll identify opportunities to reduce total cost, improve COI compliance, and support scalable growth.