California Temporary Employee Sample Acknowledgment Form

Background and Explanation

California law requires employers to pay employees their final wages immediately if they are
discharged or within 72 hours if they quit without notice. Unless an employment relationship is
expressly terminated, most staffing firms do not treat the end of each assignment as a discharge
or resignation. As a result, they comply with California’s regular payday requirements rather
than the “final” pay rules.

On July 10, 2006, the California Supreme Court decided the case of Smith v. L’Oreal, in which
the court held that the California final pay requirements normally apply when an employee is
“discharged” or “released.” The case did not involve a staffing firm, but because there is
uncertainty regarding the scope of the ruling, and because a willful failure to comply with the
final pay requirements can result in significant penalties, staffing firms may wish to consider
documenting their understanding with temporary employees that the mere completion of an
assignment is not considered a discharge, release, resignation, or termination.

The sample employee acknowledgment form that follows simply provides one possible approach
to the issue and should not be viewed in isolation. A staffing firm that chooses to use such an
acknowledgment should review all documents carefully to make certain they are consistent. This
includes any application forms, time sheets, offer letters, employee handbooks, personnel
policies, pay practice memos, agreements, and other documents that relate to the nature of the
employment relationship. The sample anticipates that many staffing firms will also wish to
preserve the at-will nature of the employment relationship. It also provides other optional
provisions that may be appropriate for some firms but not others.

NOTE: The sample acknowledgment form language set forth below is not intended as legal
advice. Staffing firms are strongly encouraged to discuss the use of this or any other sample
agreement with their own legal counsel.

1
 TEMPORARY EMPLOYEE ACKNOWLEDGMENT FORM

This will acknowledge the understanding between you and [Staffing Firm Name] regarding our
mutual expectation of continued employment under the following terms and conditions. It is
understood that our employment relationship is one of employment “at-will.” This means that
you have the right to end the employment relationship at any time, either with or without cause.
You can exercise that right by expressly notifying us that you have quit and do not wish to be
considered for future assignments. We have the same right and can expressly notify you of the
decision to terminate your employment, either with or without cause.

Job assignments may be sporadic, intermittent, unpredictable, and irregular. As a result,

significant gaps may occur between assignments. Nevertheless, we both agree that the
employment relationship will not end at the conclusion of any assignment, unless one of us
expressly notifies the other of the decision to end the employment relationship in the manner
noted above. It is agreed that, in the absence of such notice, the end of an assignment will not
constitute or be considered a discharge, release, resignation, or termination of the employment
relationship.

It is further agreed that, between assignments, we will continue to consider you for suitable work
opportunities for which we determine you are qualified. You will not earn wages except when
you perform actual work on assignments you are given or when otherwise required by law. You
also may take advantage, on a purely voluntary basis, of our training resources between
assignments.

We also both agree that, while the employment relationship continues, you will be paid in
accordance with the regular payday rules governing current employees. You will be paid on
regular paydays following the completion of services on any assignment. If you expressly notify
us of your decision to quit, or if you are terminated, you will receive your final wages sooner, as
the law requires.

[OPTIONAL] If you qualify for [health insurance or other insurance] benefits, you may be
eligible to maintain your insurance in effect for a period of up to [______] months following
your last assignment. You can inquire about the details of such benefits from
[_________________].

After you are hired, you normally will not need to complete a new application form or additional
new-hire paperwork in order to receive additional assignments as long as you remain employed.
Exceptions will occur if you seek a new assignment that requires special screening, or if special
requirements are imposed by a particular client or are required by law.

By signing below, you acknowledge that you have read this acknowledgment, fully understand
it, and voluntarily agree to each and all of its provisions.

Print name ____________________________________

Signature ____________________________________
Date ____________________________________