California University System Sues Kelly Services for Data Breach by Tech Consultant
This could be a tech staffing firm's worst nightmare. The University of California Board of Regents has launched a lawsuit (copy attached below) against Kelly Services asserting that an employee of one of its sub-subcontractors downloaded the names, addresses, birthdates, and Social Security numbers of approximately 179,629
Chicago Staffing Firm Seeks to Avoid Brokerage Fee After Sale of Business
Failure to terminate brokerage contract may result in an obligation to pay brokerage fee years after broker introduced the buyer and seller
Chicago-area staffing firm Alternative Staffing, Inc. has sued Transact Capital Partners, LLC, a Richmond, Va. business brokerage and advisory firm, seeking a court declaration that it does not
New Jersey Declares War on Blue Collar Staffing
"New Jersey Temp Worker Bill of Rights" creates extraordinary regulatory burdens on staffing firms and clients
Among other things, this just-enacted law requires covered temporary workers in New Jersey to be paid the average compensation rate and benefits (or the cash equivalent of the benefits cost) paid by
New State Salary Minimums - Are you Compliant?
Everyone is familiar with the $35,568 federal minimum salary requirement for overtime exempt employees. But federal law is not the last word when it comes to this subject. State and local governments are increasingly adopting their own salary standards, including some major changes for 2023. Before we get too
New California Law Requires Pay Rate Disclosures to the State and to Staffing Clients
Pay transparency legislation creates significant administrative burden for California employers, with a special twist for staffing firms.
Last week I reported on the salary posting requirements being enacted by some states, including California. The California law, known as Senate Bill 1162, contains a less-publicized requirement that many staffing firms will
Weekly Roundup: Hospitality Staffing Solutions, Aerotek, Medix, Maxim, Faststaff, and U.S. Nursing
Catching up on the action today. Not sure how Medix managed to run up $1,713,809 in unpaid fees for COVID testers - I thought the Feds paid for everything? This looks like a painful lesson about the dangers of one-off opportunities.
Hospitality Staffing Solutions and Walgreens Face California
Coverage of New Salary Posting Laws - How Broad?
California and Washington Regulators Take an Expansive View
On January 1, 2023, California and Washington State joined Colorado in requiring salary ranges to be included in job posts. Employers with no offices or employees in these states might think they are off the hook from complying, but that would be
The Federal Trade Commission’s Proposed Non-Compete Ban and the Staffing Industry
By Bill Josey, Editor, Staffing Legal News - 11 Jan 2023
Background
On January 5, 2023, the Federal Trade Commission published a proposed regulation flatly banning all employee noncompete agreements, defined as any agreement that expressly or functionally “prevents the worker from seeking or accepting employment with a person, or
Staffing Giant and Client Hit with "Preparatory Work" Class Action in Tennessee
I recently reported on a "preparatory work" class action involving unpaid computer startup time, which you can read about here. A January 3, 2023, lawsuit in Tennessee adopts the same legal theory in the context of production workers in a manufacturing facility.
Nonpayment Lawsuits Abound-Watch Those Receivables!
It seems the number of nonpayment lawsuits filed by staffing firms is picking up, as illustrated by the examples below. With a business slowdown and possible recession in process, it is more important than ever to closely watch your receivables and immediately address any delays in payment.
Another Tempnapping in Progress
In October I wrote about a temp transfer case in Ohio in which Surge Staffing alleged that a former employee, working with a competitor, pulled off a switch of 10 temps on assignment to the competitor's payroll, presumably with the client's cooperation.
Latest Disability Cases Demonstrate Challenges Facing Staffing Firms
This week's disability cases come to us courtesy of Addeco USA and Vaco Nashville, each of whom find themselves a target of Federal Court disability lawsuits, along with their clients. In each case, the actions of the clients are the immediate source of the claims.
Kelly Services Cases Provide Valuable Lessons in Assignment Suitability, Client Selection, and Receivables Management
A wage-hour class action lawsuit recently filed in California seems to be a good example of a job assignment that staffing firms should simply say "no" to.
Lawsuit Illustrates Challenges to Staffing Agencies Posed by Disability Laws
In our earlier report on the Equal Opportunity Employment Commision targeting staffing firms in lawsuits, there was a decided emphasis on alleged violations of the Americans with Disabilities Act.
Ninth Circuit Rules That Computer Startup Time is Compensable Under the FLSA
The U.S. Ninth Circuit Court of Appeals has overruled a Nevada District Court and found that time spent by call center workers booting up computers is integral to
the employees' duties of receiving customer phone calls and scheduling appliance
pickups, and therefore is compensable work time under the
How Staffing Firms and Owners Can Face Criminal Liability
Two recent cases illustrate how to get charged with a crime by the U.S. Department of Justice.
Verbal Recruiting Agreement Leads to Fee Litigation Between Recruiters
A California lawsuit filed by physician recruiter Levison Search Associates ("Levison") against Healthcare Recruitment Link, LLC ("HRL") illustrates the perils of verbal recruiting agreements. What makes this case unusual is that it is not your typical client-recruiter dispute.
Florida Case Illustrates Risk of Engaging a New Client
Ring the bell, you just landed a new big account! Congratulations, but your celebration will be quickly canceled if that shiny new client doesn't pay you.
Friday Roundup
The action continues in courts across the nation: Beacon Hill, Cross Country Healthcare, and Kelly.
US DEPARTMENT OF LABOR OBTAINS JUDGMENT TO RECOVER $9.3M IN BACK WAGES FOR 1,756 WORKERS MISCLASSIFIED BY PHILADELPHIA STAFFING COMPANY
US Healthcare and its owner admit to not paying overtime to healthcare workers and agree to Consent Judgement
EEOC Targets Staffing Firms in 2022
At least 12 staffing or recruiting firms were pursued directly by EEOC for alleged employment discrimination in the past year.
Another Aerotek Client Runs Up the Tab
Who is minding the receivables at Aerotek?
Recruiting Agency Awarded $3,640,132.60 in Lawsuit Against Former Employee
Non-compete case provides insights into Big Law recruiting.
Aerotek Trademark Suit Against Jobot Just the Tip of the Iceberg
Lawsuit appears to be just one front in a larger battle between the staffing giant and upstart Jobot.
Mass Tempnapping In Progress!
Lawsuit alleges former Branch Manager flipped 36 temps on assignment to her new employer.
Barrett Business Systems Sues Two Competing Former Employees and Their Wives
On September 15, 2022, Seattle-based Barrett Business Systems launched an unfair competition suit in Washington state against two former employees, Charles Colmenero and Santiago Alejo. The complaint alleges that the former Area Manager and Recruiter "established a competing business, Repsel Associates, Inc. dba Personna Employer Services while working for
Medical Marijuana and Background Checks
New York case illustrates the dilemma for staffing firms that follow client screening requirements.
Even the Largest Staffing Firms Get Stiffed Sometimes
Aerotek Sues Florida Client for Unpaid Fees
Gender Dysphoria Protected Under ADA - Fourth Circuit
Other Circuits Likely to Address the Question in Future Years
Egon Zehnder Dodges Whistleblower Tax Fraud Claim
Nightmare scenario ends for global search firm as Federal Court approves nominal settlement payment to State of New York. Settlement unsuccessfully opposed by the whistleblower.
