Risk Management & Mitigation Flashcards
7 cards from real CSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Mitigation flashcards as text
A staffing firm's client insists on conducting background checks on candidates before the firm does. What is the primary risk this arrangement creates?
Answer: The client may violate FCRA requirements, exposing the staffing firm to shared liability
When clients conduct background checks, FCRA compliance obligations may be triggered, and improper procedures can expose the staffing firm to liability as well.
Which scenario most clearly creates a joint employer relationship that increases a staffing firm's legal exposure?
Answer: The client controls day-to-day supervision, scheduling, and work methods of placed workers
Courts typically find joint employer status when the client exercises substantial control over workers' daily tasks, schedules, and working conditions.
To reduce unemployment insurance (UI) risk, staffing firms should include which provision in their worker agreements?
Answer: A requirement that workers notify the firm of assignment end and accept reassignment offers
Requiring workers to contact the firm for reassignment at assignment end can reduce UI liability by demonstrating continued work availability.
A client requests that a staffing firm supply only workers of a specific age group for a customer-facing role. What is the staffing firm's correct response?
Answer: Refuse and educate the client that age-based selection violates the ADEA
Age-based worker selection violates the Age Discrimination in Employment Act (ADEA), and a staffing firm must refuse such discriminatory requests.
What is the primary purpose of including a 'right to audit' clause in a staffing firm's client service agreement?
Answer: To let the staffing firm verify the client's compliance with safety and employment law obligations
A right to audit clause lets the staffing firm verify client-side compliance with wage, safety, and other legal obligations that affect the firm's liability.
A staffing firm's placed worker is sexually harassed by a client supervisor. Under Title VII, which statement is most accurate regarding the staffing firm's liability?
Answer: The staffing firm may share liability if it knew or should have known and failed to act
Staffing firms can be held liable under Title VII if they had notice of harassment and failed to take reasonable corrective action.
Which action best demonstrates a staffing firm's commitment to proactive risk management in its placement operations?
Answer: Conducting pre-placement worksite safety assessments for all new clients
Pre-placement worksite safety assessments allow staffing firms to identify hazards before workers are placed, reducing injury risk and liability.