Jan
31

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
2 min read
Jan
26

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
4 min read
Jan
23

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
2 min read
Jan
10

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
3 min read
Jan
05

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.
2 min read
Dec
28

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.
1 min read
Dec
13

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.
3 min read
Dec
09

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.
2 min read
Nov
28

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.
3 min read
Nov
17

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.
2 min read
Nov
13

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
1 min read
Nov
05

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.
1 min read
Nov
05

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.
2 min read
Oct
27

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.
2 min read
Oct
21

Friday Roundup

The action continues in courts across the nation: Beacon Hill, Cross Country Healthcare, and Kelly.
4 min read
Oct
17

Client's Supervisor Brings Politics to Work - Litigation Ensues

1 min read
Oct
13

MWK v. Jowers Update: More Action as Predicted

2 min read
Oct
06

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
1 min read
Oct
03

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.
3 min read
Oct
03

Another Aerotek Client Runs Up the Tab

Who is minding the receivables at Aerotek?
1 min read
Sep
26

Recruiting Agency Awarded $3,640,132.60 in Lawsuit Against Former Employee

Non-compete case provides insights into Big Law recruiting.
2 min read
Sep
20

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.
4 min read
Sep
17

Mass Tempnapping In Progress!

Lawsuit alleges former Branch Manager flipped 36 temps on assignment to her new employer.
2 min read
Sep
16

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
1 min read
Sep
15

Medical Marijuana and Background Checks

New York case illustrates the dilemma for staffing firms that follow client screening requirements.
2 min read
Sep
10

Even the Largest Staffing Firms Get Stiffed Sometimes

Aerotek Sues Florida Client for Unpaid Fees
Sep
09

Gender Dysphoria Protected Under ADA - Fourth Circuit

Other Circuits Likely to Address the Question in Future Years
1 min read
Sep
07

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.
1 min read