On August 30, 2022, staffing giant Aerotek filed suit in federal court against a small electrical contractor, KES Energy Solutions, LLC, for unpaid invoices totaling $416,726.54. According to the Complaint, the massive debt was incurred through March 5, 2022, on a project located in Penfield, New York. This is the second recent large collections case filed against a client by Aerotek, making one wonder who is minding the receivables over there. When a staffing firm continues to provide labor to a past due client, it is essentially acting as a free lender. Who needs a bank if you have an easy-going staffing partner?
While Aerotek can certainly afford to take such losses, they can be devastating to smaller firms that provide most of the world's staffing services. Some firms resist calling out past due clients for fear of offending them. But there is nothing offensive about insisting on timely payment for services, especially in a world where the invoice might not even become due until 60 or more days after the service is provided.