A staffing firm has two workforces, its own staff and the workers it places, and they follow different ICHRA rules.
Internal recruiters and office staff can be classed like any employer. Placed workers can be their own class, and client contracts can affect what a staffing firm can change.
What to settle for each workforce.
Internal Staff
Recruiters, account managers and office staff are classed by status like any employer.
Placed Workers as a Class
Temporary employees placed with clients can be their own class under the rules.
Hours Across Gaps
Placed workers have gaps between assignments. Write down how time between assignments counts.
Client Contracts
Client contracts and bill rates may reflect current benefit costs. Review them before changing.
Peak Placement
Placement volume swings with client demand. Model cost at peak and at the low point.
Reaching Workers
Placed workers are spread across client sites and may be hard to reach. Plan how notices and enrollment help will reach them.
Two Workforces, Two Sets of Class Rules
A staffing firm usually has two workforces with different needs: the people on its own payroll who work in the office, and the people it places with clients.
The classes that fit a staffing firm
| Group | Permitted class | Note |
|---|---|---|
| Placed workers on temporary assignments | Employees hired to be placed temporarily with an entity that is not their common-law employer | A class defined by the placement, set before the plan year |
| Internal salaried staff | Salaried, and full-time if the sponsor chooses | Often the group that keeps the group plan |
| Placed workers who have not finished the waiting period | A waiting-period class | Waiting period must comply with the 90-day limit |
| Placed workers in one county or region | A rating-area class, by primary worksite | The primary worksite of a placed worker may be the client site |
Source: 26 CFR 54.9802-4(d)(2). Classes can be combined, and they cannot change during the plan year.
How hours work for placed workers
New variable-hour and seasonal employees can be measured over an initial period of at least three and no more than 12 months. Full-time status then holds for a stability period of at least six months, no shorter than the measurement period. Staffing firms with variable-hour placements usually use the look-back method.
Source: 26 CFR 54.4980H-3(d)(3).
When the minimum class size applies
If a firm keeps a group plan for one class and offers an ICHRA to another, the ICHRA class must meet a minimum size: 10 employees if the firm has fewer than 100 employees, 10 percent of employees if it has 100 to 200, and 20 if it has more than 200. A firm with 150 employees needs at least 15 in the ICHRA class. The test lists full-time, part-time, salaried, hourly and rating-area classes. It does not list the temporary placement class, so how it applies to a combined class should be confirmed with counsel.
Source: 26 CFR 54.9802-4(d)(3).
The questions staffing firms ask about internal and placed employees.
Are placed workers employees of the staffing firm?
Typically yes, since the staffing firm is their employer. Counsel should confirm for each arrangement.
Can placed workers be a separate class?
Temporary staffing firm employees are a permitted class under the rules.
Do client contracts matter?
They can. Review contract terms and bill rates before changing benefits.
How are gaps between assignments treated?
Write a rule for how time between assignments counts, and apply it the same way for everyone.
Can internal and placed staff have different allowances?
Yes, if they are in different classes. Every employee in a class gets the same allowance.
How does a waiting period work?
A waiting period of up to 90 days is allowed and applies to the whole class.
Is this covered on your staffing page?
Yes. Our ICHRA for staffing agencies page goes further.
General information about individual coverage HRAs, not legal or tax advice. Plan-specific questions belong with ERISA counsel and your tax advisor, and we will bring them in.
Where these details come from.
This page summarizes public guidance reviewed in October 2026. Rules change, so confirm current requirements with counsel.
CMS: Individual Coverage HRAs →
U.S. Department of Labor: Employee Benefits Security Administration →
More ICHRA questions and the industries they affect.
Class Assignment
Sort each employee group into a permitted class.
Hours and Mid-Year Changes
Measuring hours and status changes.
Employee or Contractor
Who is eligible for an allowance.
ICHRA for Staffing Agencies
Internal staff and placed employees.
ICHRA for Trucking and Logistics
Drivers, owner-operators and dispatch.
ICHRA for Home Health and Social Services
Field staff and variable schedules.
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