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Free-Splitting Revisited: Concealing Surplus Value in the Temporary Employment Relationship

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  • GEORGE GONOS

Abstract

Based on a historical study of fee regulation in the employment agency business, the claim that temporary help agencies charge “no fees†to workers is challenged. It is found that the claim rests on technical changes in the statutory definitions of fee and employment agency won through industry lobbying efforts, changes that simply mask traditional fee-charging methods. The article traces the evolution of fee-charging practices in the post-World War II period and points to a new version of “fee splitting†as a prevalent wage setting practice in the staffing industry. The implications of these developments for wage depression and income redistribution are explored.

Suggested Citation

  • George Gonos, 2001. "Free-Splitting Revisited: Concealing Surplus Value in the Temporary Employment Relationship," Politics & Society, , vol. 29(4), pages 589-611, December.
    • Handle: RePEc:sae:polsoc:v:29:y:2001:i:4:p:589-611
    DOI: 10.1177/0032329201029004005
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    Cited by:

    1. Angelo A. Alonzo & Arthur B. Simon, 2008. "Have stethoscope, will travel: contingent employment among physician health care providers in the United States," Work, Employment & Society, British Sociological Association, vol. 22(4), pages 635-654, December.
    2. Ashley Baber, 2024. "Labour Market Engineers: Reconceptualising Labour Market Intermediaries with the Rise of the Gig Economy in the United States," Work, Employment & Society, British Sociological Association, vol. 38(3), pages 723-743, June.

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