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by URSpider94 3199 days ago
Read up on the concept of "moral hazard." These temp companies are small entities, often run out of homes. If you go after them, they'll simply liquidate and fold up shop. Small entities have an advantage in highly regulated environments, because the most they can lose is 100% of their assets, while they stand to gain many multiples of that. Incorporation laws prevent owners from being liable for the debts of the corporation, in most cases, so in the event of a failure, the owners dust themselves off and move on to the next.

Large corporations love to outsource risky/dangerous/questionable activities to small firms who are willing to gamble.

1 comments

Hazardous waste disposal companies are also small for the same reason.