Staffing Legal News
News About Staffing Agency Law, Legislation, and Lawsuits
Jun
20

TRC Staffing Hit with Two Class Actions Over Data Breach

The trend continues Stay Informed - 60-Day Free Trial 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
2 min read
Jun
10

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
2 min read
Jun
07

Addison Group Manager Fired - Lawsuit Follows

Bonus dispute with CEO triggers retaliation and defamation claims Stay Informed - Get Staffing Legal News - Free Trial Dak Gilinski, the former Managing Director of Addison Group's Los Angeles office, has filed a multi-count lawsuit against the company after being terminated following a dispute with Addison'
3 min read
May
30
Health Care Tech Firm Faces Overtime Class Action

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
2 min read
May
28
DOL's New Salary Threshold is Effective on July 1 Absent Successful Legal Challenge

DOL's New Salary Threshold is Effective on July 1 Absent Successful Legal Challenge

Unless a pending legal challenge succeeds, beginning July 1, 2024, U.S. employers must pay their salaried employees at least $844 per week ($43,888 per year) in order to exempt them from overtime pay under the Fair Labor Standards Act. The Department of Labor's new rule is
2 min read
May
24
Memorial Day Remembrance

Memorial Day Remembrance

This weekend let us remember all the veterans who served our country from the Revolutionary War until today. I will be thinking of my late father, Dr. William E. Josey, who at age 19 served on the destroyer/mine-sweeper USS Ellyson in the South Pacific during the Second World War.
1 min read
May
10

Allegis vs Jobot: Jobot Wins Again

Allegis Group takes another loss in its home court Background Last year Staffing Legal News reported on a noncompete loss suffered by Allegis in its "home court" in Maryland, where the company is based. In that case, Allegis and its subsidiary Aston Carter sued former employee Christopher J.
4 min read
May
07
Important Takeaways from Insight Global's $2.7 Million Cybersecurity Settlement

Important Takeaways from Insight Global's $2.7 Million Cybersecurity Settlement

Companies performing on federally funded contracts have significant exposure to cybersecurity lawsuits and damages under the False Claims Act.
7 min read
Apr
29

Employment Candidate Files Suit Against Recruiting Agency Major, Lindsey and Africa

Candidate alleges Allegis Group subsidiary dumped her after she filed discrimination claim against her former employer In a blistering 21-page complaint filed in the U.S. District Court for the Middle district of Maryland (attached below), Attorney Gita Sankano has accused legal recruiting giant Major, Lindsey and Africa ("MLA&
2 min read
Apr
25

FTC Ban on Non-Compete Agreements Not Likely to Hold Up

Staffing is a highly competitive business, and non-compete agreements are widely used by employers in the industry. In coming days, there will be a lot of news about the Federal Trade Commission's move to outlaw almost all existing non-compete agreements, defined as any agreement that prevents an employee
2 min read
Apr
23

U. S. Supreme Court Broadens the Basis for Discrimination Claims

Surprising ruling means that employers can expect more lawsuits The most common legal claims brought against staffing firms (and employers in general) are lawsuits brought under Title VII of the Civil Rights Act of 1964, as amended, and its state and local variants. Last week, the U.S. Supreme Court
2 min read
Apr
14

Double Dipping Employees on the Rise

Cross Country Staffing lawsuit highlights the problem - a recruiter with three full time jobs... The rise of remote work has created opportunity for workers to hold more than one "full time" job. A 2023 report by organizational consultant McKinsey estimates that 5% of a typical company'
2 min read
Apr
11

Aerotek Wins the Right to Arbitrate- But Loses the Arbitrations

In a landmark 2021 decision in favor of staffing giant Aerotek (and beneficial to employers in general), the Texas Supreme Court ruled that former Aerotek temporary employees could not invalidate their electronic signatures on arbitration agreements merely by denying that they signed them. The ruling in this employment discrimination case
1 min read
Apr
04

Big Law Recruiter Loses Appeal of $6,391,732 Award to Former Employer

Collection efforts have recruiter on the run In September 2022, Staffing Legal news reported that a Texas federal judge found legal search recruiter Evan P. Jowers was liable to his former employer, MWK Recruiting, for misappropriating candidate lists and violating his non-competition agreement:
4 min read
Mar
28

Justice Department Repeatedly Punishing Staffing Firms for Job Posting Violations

5 min read
Mar
25

Court Denies Acara's Motion to Dismiss System One's Tempnapping Case

Injunction Hearing Scheduled In unusually rapid fashion, U.S. District Court Judge Maryland Horan has denied Acara Solutions' request for dismissal of System One's "tempnapping" lawsuit filed last month in Pennsylvania. The lawsuit (attached below) seeks to prevent Acara from hiring 200 System One workers
1 min read
Mar
20

Acara Responds to System One's "Tempnapping" Suit

Last month SLN reported on System's One's lawsuit challenging a client's attempt to transfer its entire assigned workforce to competitor Acara Solutions. Acara has now responded and seeks dismissal of the case (Acara's Brief attached below). As we pointed out in the
1 min read
Mar
19
Operator of Florida Hospitality Staffing Companies Sentenced to Four Years in Prison for Tax and Immigration Charges

Operator of Florida Hospitality Staffing Companies Sentenced to Four Years in Prison for Tax and Immigration Charges

1 min read
Mar
19
Aerotek Filing Big Debt Collection Lawsuits

Aerotek Filing Big Debt Collection Lawsuits

Is it the economy or just business as usual? As one of the biggest players in the staffing industry, it is not surprising that Aerotek spends more time in court than most staffing firms. Lately, the firm has been chasing clients for some pretty large unpaid bills. This may be
2 min read
Mar
15
Staffing Agency TalentLaunch Named in Data Breach Class Action

Staffing Agency TalentLaunch Named in Data Breach Class Action

Staffing agency TalentLaunch, LLC has been named in a class action (copy attached) filed in the U.S. District Court for the Northern District of Ohio. The lawsuit is part of the newly emerging legal industry of data breach class actions.
2 min read
Mar
13

ASA-Supported Staffing Agencies Overturn Benefit Matching Requirement in Illinois

In a significant, albeit partial, victory, the ASA affiliated Staffing Services Association of Illinois and several staffing firms have won a federal court injunction halting the enforcement of Illinois' recently imposed requirement that industrial staffing firms match their clients' benefits.
1 min read
Mar
11

Healthcare Giants in Heated Texas Noncompete Battle

On November 13, 2023, AMN Healthcare filed a lawsuit (attached below) against Aya Healthcare and Robert Wolf, who before his hire by Aya was a tenured (20 years) senior manager at AMN.
2 min read
Mar
07
Barrett Business Services Lawsuit Alleges Trade Secret Misappropriation

Barrett Business Services Lawsuit Alleges Trade Secret Misappropriation

A lawsuit filed on March 4, 2024, by Barrett Business Services (copy attached below) provides a primer on how to appropriately protect the trade secret status of your client and candidate lists.
3 min read
Feb
28

Fair Credit Reporting Act Lawsuit Filed Against Onin Staffing

A Missouri lawsuit against Onin Staffing (attached) serves as a reminder that alarm bells should go off when a client rejects a candidate because of a background check result.
1 min read
Feb
27

Kimco Staffing Services Hit with Data Breach Class Action

California-based Kimco Staffing Services was just served with a class action lawsuit (attached below) arising out of a June 2023 cybersecurity event.
4 min read
Feb
21

System One Brings "Tempnapping" Suit Against Acara Solutions

Is this a trend? This sort of thing used to happen more frequently 25 years ago. A client decides to ditch its existing staffing agency and cuts a deal with a competing agency to take over the incumbent agency's workforce. Sometimes the issue was service, but more often
4 min read
Feb
19

TEKsystems Battling Recruiter Class Actions on Both Coasts

On February 13, 2024, California U.S. District Court Judge Jacqueline Scott Corley certified a class of California TEKsystems recruiters in a wage/hour overtime case against the Allegis Group subsidiary.
2 min read
Feb
06

The Corporate Transparency Act - Big Brother Arrives

2 min read
Feb
06

Class Action Against Staffing Firm Points to Client's Faulty Timekeeping System

Last week we warned that: "Staffing firms are especially vulnerable to clients that control the timekeeping systems, and this can include the time entry systems of vendor management or managed service companies." And right on cue, we have a California class action that illustrates the point.
2 min read
Jan
31

Pittsburg Staffing Firm Accused of Shorting Pay of Colorado Workers

1 min read
Jan
30

Another Shoe Drops in Lawsuit Against Legal Recruiter

Former employer wins attorney's fees - final award now $6,391,732.
2 min read
Jan
24

Hayes Medical Staffing Wins Injunction Against Jobot Hires

But court declines to enforce noncompete agreements.
3 min read
Jan
18

New DOL Independent Contractor Rule Challenged

2 min read
Jan
09

2023 HIGHLIGHTS

2023 was the first full year of publication for Staffing Legal News, and I am gratified by the response, especially the encouragement and positive comments from subscribers.
9 min read
Jan
03

State Salary Minimums for 2024

Here are the state rates for 2024 that are higher than the federal minimum:
1 min read
Dec
19

Chicago Paid Leave Law Delayed

1 min read
Dec
17

Recreational Use of Cannabis Now Protected in California and Six other States

1 min read
Dec
12

Massachusetts Set to Join States Requiring Pay Transparency

As predicted, the pay transparency train continues to roll, with Massachusetts on the verge of passing its own pay transparency requirements.
2 min read
Dec
07

Illinois Paid Leave Alert - Chicago ups the Ante for City Employers

My recent update on the Illinois "any reason" paid leave law requires supplementation, because the City of Chicago has just passed its own controlling leave law that goes into effect on January 1, 2024. It's a business killer if there ever was one.
2 min read
Dec
05

14 Year Battle Between Recruiter and Major, Lindsey & Africa Not Over Yet

What is it about legal search recruiters? This is my second story in a year about a massive damage award against a legal search recruiter for engaging in unfair competition, only this one has a twist.
6 min read