Remote Recruiter Works for Three Competitors
It is not unusual for someone to undertake work on the side these days, but a lawsuit just filed in New Hampshire portrays an extreme example.
Lessons from a Staffing Firm Bankruptcy
The recent Chapter 11 reorganization filing of USA Staffing Solutions, LLC provides a case study of how a successful staffing agency can slide into financial difficulty. Filed on June 26, 2025, in the United States Bankruptcy Court for the Middle District of Florida, the case involves a cascade of operational
Client Bankruptcy: A Guide for Staffing Companies
With predictions of recession in the air, now is a good time for a refresher on the bankruptcy process.
Robert Half Settles Background Check Class Action
Staffing giant Robert Half International has settled a long-running class action lawsuit arising out of its background check procedures. The tab was payment of $2,258,909 to the class members and an attorneys' fee award of $4,076,999 to the plaintiffs' lawyers.
Hanover Insurance Sues Compunnel and Subsidiaries in Workers’ Compensation Dispute
In an unusual case, the Hanover Insurance Company has filed a lawsuit against New Jersey-based Compunnel Software Group, Inc. and its subsidiaries, Infopro Learning Inc., NurseDeck Inc., and Wall Street Services, Inc., in the United States District Court for the District of New Jersey. The case centers on alleged breaches
Robert Half Launches Noncompete Suit Against Former Manager
Allegations include misappropriation of client and candidate data and breach of duty of loyalty
On April 3, 2025, staffing giant Robert Half, Inc. filed a federal noncompete lawsuit (Complaint attached below) against the former Senior Vice President and Practice Director of its Wall Street Finance and Accounting division. In the
Verizon Ends Assignment of Temp on Family Leave - Lawsuit Follows
It is an all-too-common scenario. In fact, most discrimination suits against staffing firms are brought by temporary workers because of something the client did.
NLRB's Anti-Employer Regime Ends
National Labor Relations Board Acting General Counsel William B. Cowen has rescinded the employer-hostile enforcement memoranda promulgated by former General Counsel Jennifer Abruzzo
Michigan Sick Time Law Update
Despite frantic efforts by business groups to obtain legislative changes, Michigan's onerous (for employers) Earned Sick Time Act (ESTA) is set to go into effect on February 21, 2025.
EEOC Active Against Staffing Firms
Discrimination lawsuits lead the way in staffing industry litigation. Notwithstanding the ongoing dramatic changes in affirmative action and DEI initiatives, we can expect the EEOC and private litigants to continue pursuing discrimination cases vigorously.
Breaking News: Trump Ends Affirmative Action
On January 1, 2024, President Trump issued an Executive Order entitled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity." The Trump Order ends federal affirmative action and all federal DEI initiatives.
Staffing Law: 2024 Highlights
2024 set the stage for a sharp contrast between the federal vs. local regulatory environments. On the federal level, in 2024 courts drew lines in the sand and blocked several instances of federal regulatory agency overreach.
BOI Filing Requirement Quashed by Texas Federal Court
A Texas Federal Court has entered a nationwide injunction prohibiting the enforcement of the controversial Beneficial Ownership Information law.
Los Angeles Jury Finds Cognizant Discriminated Against U.S. Workers
The long-running Cognizant discrimination saga has ended with a California Federal Court jury finding that the Indian staffing giant discriminated against non-Indian U.S. workers.
DOL Tags Staffing Firms Paying Workers as Independent Contractors
Two related healthcare firms have been ordered to pay 341 employees a total of $2.4 million for failure to pay overtime.
California PAGA Suit Snares Staffing Firm Beacon Hill
Boston-based Beacon Hill Staffing has been named as a defendant (Complaint attached below) in one of the many lawsuits being filed under California's Private Attorney General Act, commonly referred to as PAGA.
Breaking News: DOL Salary Rule Struck Down
Federal Court Strikes Down Rule Raising Minimum Salary for Overtime Exemptions
A federal court in Texas has found the U.S. Department of Labor's overtime exemption salary increases to be unlawful and invalid. The rule raised the "white collar" overtime exemption minimum salary to $43,888
Staffing Firm Accused of Lactation Discrimination
This is timely. Recently we provided a comprehensive update on pregnancy discrimination laws in the US, including the federal PUMP Act, requiring employers to provide accommodations for lactating mothers:
How to Trigger a Pregnancy Discrimination LawsuitEmployers should understand that pregnant workers arguably enjoy more workplace legal protections than any class
TEKsystems Challenges Minnesota Affirmative Action Overreach
Workforce Certificate requirements at issue
In an unusual case, staffing giant TEKsystems is challenging how Minnesota grants Workforce Certificates. Companies with more than 40 employees in the state, or that are headquartered in the state, must obtain a Workforce Certificate to do business with the state, cities, counties, townships, and
How to Trigger a Pregnancy Discrimination Lawsuit
Exploring protections for pregnant workers in the US
Employers should understand that pregnant workers today arguably enjoy more workplace legal protections than any class of workers in the United States. The icing on the cake was the Pregnant Workers Fairness Act (the "PWFA"), which Congress passed in 2022
Kelly Services Accused of Overtime Pay Violations
A complaint (attached below) filed against Kelly Services Global, LLC in Texas last week alleges that the staffing giant violated federal and state wage hour laws by paying the plaintiff and others on an hourly "straight time" basis, regardless of the number of hours worked.
Los Angeles County Attacks Background Checks
An ordinance enacted by Los Angeles County will make it difficult for covered employers to conduct background checks. And this is the clear intent of the Los Angeles County Board of Supervisors in passing the "Fair Chance Ordinance for Employers.
Texas Court Strikes Down FTC Noncompete Ban Nationally
On Tuesday, August 20, a Texas federal court issued a national injunction preventing enforcement of the FTC's rule banning noncompete agreements. The court's ruling is attached below.
This outcome was predicted here when the rule became effective in April:
FTC Ban on Noncompete Agreements Not Likely
Courts Apply New Title VII Standard
For the past 60 years, to assert a valid employment discrimination claim under Title VII of the Civil Rights Act of 1964, an employee had to allege a “materially significant disadvantage” resulting from an employer's adverse actions.
Court Upholds BioPoint's $7.5 Million Win in Trade Secrets Case
With attorney's fees, Catapult now owes BioPoint $7,554,402, plus accrued interest. BioPoint will soon be in a position to pursue collection activities if the judgment is not paid. This could include garnishing Catapult's bank account and clients who owe fees.
Pennsylvania Federal Court Upholds FTC's Non-Compete Ban
Ruling conflicts with Texas court ruling - final outcome still undetermined
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As previously reported here, there are two pending federal court lawsuits challenging the Federal Trade Commision's rule banning non-compete agreements in the United States. Background here:
FTC’s Non-Compete
Federal Appeals Court Upholds New Jersey Anti-Staffing Law
Industry challenge to benefits-matching requirement still alive
In a ruling that is disappointing, but not entirely unexpected, the U.S. Third Circuit Court of Appeals has rejected an appeal by industry groups seeking to overturn New Jersey's "Temporary Worker's Bill of Rights." This law
System One and Acara Resolve Tempnapping Case
SLN has been following a case involving an attempted workforce transfer by a staffing firm client. The client, Alstom Transportation, attempted to move the workers of System One to its new staffing supplier, Acara Solutions. System One was of course not happy about this and sued Alcara under two theories:
California PAGA Reforms: Band Aid on a Broken Leg?
Updated law maintains penalties, creates new avenues for litigation, and hides a major win for labor
While some are optimistically celebrating the California PAGA "reforms" that went into effect on July 1, the complex new PAGA structure is just more of the anti-employer over-regulation that makes California the
Court: FTC Ban on Non-Competes Invalid, but...
Judge declines to enter national injunction
The Federal Trade Commission's rule banning all non-complete agreements, slated to become effective on September 4, 2024, has generated much commentary since it was approved in April of this year. When the Rule came out in April, Staffing Legal news noted: "
USERRA Presents Staffing Agency Challenges
The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that protects members of the military, including the Reserves, and requires employers to return them to their civilian jobs following a period of uniformed service. For staffing agencies, USERRA presents unique challenges, because their assigned employees'
Minnesota Authorizes Customers to Poach Temps
Last year I wrote about Minnesota's ban on non-compete agreements, and methods that may remain available to employers to protect their businesses from unfair competition. Now the Land of 10,000 Waters is back at it again, this time with a vengeance. The Minnesota Legislature has just outlawed
TRC Staffing Hit with Two Class Actions Over Data Breach
The trend continues
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Atlanta based TRC Staffing Services, Inc., d/b/a TRC Talent Solutions, has been hit with two competing class actions (copies attached below) arising out of a March 2024 ransomware attack. The pattern is becoming familiar. Following a cyber event, a
Partial Industry Win Possible in New Jersey War on Staffing
But major problems will remain unless appeal succeeds
Last Year Staffing Legal News reported on New Jersey's "Temporary Worker Bill of Rights," which is actually a transparent attempt to destroy a large segment of industrial staffing in the state. The law requires industrial staffing firms to
Health Care Tech Firm Faces Overtime Class Action
An overtime class action has been filed against CereCore, a subsidiary of hospital giant HCA Healthcare. CereCore began life as HCA's in-house technology department, but in the last 15 years morphed into a stand-alone company offering healthcare staffing services nationally and internationally, with a focus on technology and
