[Code of Federal Regulations]
[Title 5, Volume 1, Parts 1 to 699]
[Revised as of January 1, 1997]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR300]

[Page 119-121]

                   TITLE 5--ADMINISTRATIVE PERSONNEL

                CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT

PART 300--EMPLOYMENT (GENERAL)--Table of Contents

Subpart E--Use of Private Sector Temporaries

    Source: 54 FR 3766, Jan. 25, 1989, unless otherwise noted.

Sec. 300.501  Definitions.

    For purposes of this subpart:
    (a) A temporary help service firm is a private sector entity which 
quickly provides other organizations with specific services performed by 
its pool of employees, possessing the appropriate work skills, for brief 
or intermittent periods. The firm is the legally responsible employer 
and maintains that relationship during the time its employees are 
assigned to a client. The firm, not the client organization, recruits, 
tests, hires, trains, assigns, pays, provides benefits and leave to, and 
as necessary, addresses performance problems, disciplines, and 
terminates its employees. Among other employer obligations, the firm is 
responsible for payroll deductions and payment of income taxes, social 
security (FICA), unemployment insurance, and workers' compensation, and 
shall provide required liability insurance and bonding.
    (b) Private sector temporaries or outside temporaries are those 
employees of a temporary help service firm who are supervised and paid 
by that firm and whom that firm assigns to various client organizations 
who have contracted for the temporary use of their skills when required.
    (c) Parental and family responsibilities are defined in chapter 630 
of the Federal Personnel Manual and include situations such as absence 
for pregnancy, childbirth, child care, and care for elderly or infirm 
parents or other dependents.
    (d) A Federal supervisor of Federal employees is defined in 5 U.S.C. 
7103(a)(10) as

an individual employed by an agency having authority in the interest of 
the agency to hire, direct, assign, promote, reward, transfer, furlough, 
layoff, recall, suspend, discipline, or remove employees, to adjust 
their grievances, or to effectively recommend such action, if the 
exercise of the authority is not merely routine or clerical in nature 
but requires the consistent exercise of independent judgment * * *

    (e) A critical need is a sudden or unexpected occurrence; an 
emergency; a pressing necessity; or an exigency. Such occasions are 
characterized by additional work or deadlines required by statute, 
Executive order, court order, regulation, or formal directive from the 
head of an agency or subordinate official authorized to take final 
action on behalf of the agency head. A recurring, cyclical peak 
workload, by itself, is not a critical need.
    (f) A local commuting area is defined in part 351 of this chapter.

Sec. 300.502  Coverage.

    (a) These regulations apply to the competitive service and to 
Schedules A and B in the excepted service.
    (b) Agencies may not use temporary help services for the Senior 
Executive Service or for the work of managerial or supervisory 
positions.

[61 FR 19510, May 2, 1996]

Sec. 300.503  Conditions for using private sector temporaries.

    An agency may enter into a contract or other procurement arrangement 
with a temporary help service firm for the brief or intermittent use of 
the skills of private sector temporaries, when required, and may call 
for those services, subject to these conditions:
    (a) One of the following short-term situations exists--
    (1) An employee is absent for a temporary period because of a 
personal need including emergency, accident, illness, parental or family 
responsibilities, or mandatory jury service, but not including vacations 
or other circumstances which are not shown to be compelling in the 
judgment of the agency, or

[[Page 120]]

    (2) An agency must carry out work for a temporary period which 
cannot be delayed in the judgment of the agency because of a critical 
need.
    (b) The need cannot be met with current employees or through the 
direct appointment of temporary employees within the time available by 
the date, and for the duration of time, help is needed. At minimum, this 
should include an agency determination that there are no qualified 
candidates on the applicant supply file and on the reemployment priority 
list (both of which must provide preference for veterans), and no 
qualified disabled veterans with a compensable service-connected 
disability of 30 percent or more under 5 U.S.C. 3112, who are 
immediately available for temporary appointment of the duration 
required, and that employees cannot be reassigned or detailed without 
causing undue delay in their regular work. In instances where a need is 
foreseeable, as when approval of employee absence is requested well in 
advance, an agency may have sufficient time to follow the temporary 
appointment recruiting requirements, including veterans' preference in 
chapter 316 of the Federal Personnel Manual to determine whether 
qualified candidates are available by the date needed and for the length 
of service required.
    (c) These services shall not be used:
    (1) In lieu of the regular recruitment and hiring procedures under 
the civil service laws for permanent appointment in the competitive 
civil service, or
    (2) To displace a Federal employee.
    (3) To circumvent controls on employment levels.
    (4) In lieu of appointing a surplus or displaced Federal employee as 
required by 5 CFR part 330, subpart F (Agency Career Transition 
Assistance Plan for Displaced Employees) and subpart G (Interagency 
Career Transition Assistance Plan for Displaced Employees.)

[54 FR 3766, Jan. 25, 1989, as amended at 61 FR 19510, May 2, 1996]

Sec. 300.504  Prohibition on employer-employee relationship

    No employer-employee relationship is created by an agency's use of 
private sector temporaries under these regulations. Services furnished 
by temporary help firms shall be performed by their employees who shall 
not be considered or treated as Federal employees for any purpose, shall 
not be regarded as performing a personal service, and shall not be 
eligible for civil service employee benefits, including retirement. 
Further, to avoid creating any appearance of such a relationship, 
agencies shall observe the following requirements:
    (a) Time limit on use of temporary help service firm. An agency may 
use a temporary help service firm(s) in a single situation, as defined 
in Sec. 300.503, initially for no more than 120 workdays. Provided the 
situation continues to exist beyond the initial 120 workdays, the agency 
may extend its use of temporary help services up to the maximum limit of 
240 workdays.
    (b) Time limit on use of individual employee of a temporary help 
service firm. (1) An individual employee of any temporary help firm may 
work at a major organizational element (headquarters or field) of an 
agency for up to 120 workdays in a 24-month period. The 24-month period 
begins on the first day of assignment.
    (2) An agency may make an exception for an individual to work up to 
a maximum of 240 workdays only when the agency has determined that using 
the services of the same individual for the same situation will prevent 
significant delay.
    (c) Individual employees of a temporary help firm providing 
temporary service to a Federal agency may be eligible for competitive 
civil service employment only if appropriate civil service hiring 
procedures are applied to them.
    (d) Agencies shall train their employees in appropriate procedures 
for interaction with private sector temporaries to assure that the 
supervisory responsibilities identified in paragraph (a) of Sec. 300.501 
of this subpart are carried out by the temporary help service firm. At 
the same time, agencies must give technical, task-related instructions 
to private sector temporaries including orientation, assignment of 
tasks, and review of work products, in order that

[[Page 121]]

the temporaries may properly perform their services under the contract.

[54 FR 3766, Jan. 25, 1989, as amended at 61 FR 19511, May 2, 1996]

Sec. 300.505  Relationship of civil service procedures.

    Agencies continue to have full authority to meet their temporary 
needs by various means, for example, redistributing work, authorizing 
overtime, using in-house pools, and making details or time-limited 
promotions of current employees. In addition, agencies may appoint 
individuals as civil service employees on various work schedules 
appropriate for the work to be performed.

[61 FR 19511, May 2, 1996]

Sec. 300.506  Requirements of procurement.

    (a) Agencies must follow the Federal procurement laws and the 
Federal Acquisition Regulation, as applicable, in procuring services 
from the private sector.
    (b) Agencies should make full use of the provisions of the Federal 
procurement system to make clear that the firm is the legally 
responsible employer and to specify the obligations the firm will have 
to meet to provide effective performance including such matters as the 
types and levels of skills to be provided, deadlines for providing 
service, liability insurance, and, when necessary, security 
requirements. The Federal procurement system also requires contractors 
to comply with affirmative action requirements to employ and advance in 
employment qualified disabled and Vietnam era veterans as provided in 41 
CFR part 60-250, and with public policy programs including equal 
employment opportunity, handicapped employment, and small businesses.

Sec. 300.507  Documentation and oversight.

    Agencies are required to maintain records and provide oversight to 
establish that their use of temporary help service firms is consistent 
with these regulations. As needed, OPM may require agencies to provide 
information on their use of temporary help service firms.

[61 FR 19511, May 2, 1996]


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