
Quoting
cbg
As an employee, you cost them more than you do as an agency temp. Now suddenly your benefits and workers comp and unemployment are the employer's responsibility and not the agency's. It's by no means unusual for a rate to be decreased when the agency is no longer a factor. And if they decide to lower your rate through the agency? Well, the agency may have something to say about that - they're not in business to provide a public service, after all - and it may involve them replacing you altogether, with someone who can start at the lower rate.
So think long and hard - and talk to the agency - about how you want to handle this. It's legal AND it's half-way decent business sense.