Minnesota Bans Non-Competes
Minnesota Governor Tim Walz just signed a law banning noncompete agreements in the state. Unlike restrictions in some other states, the ban is not limited in scope to certain wage groups or occupations. It is universal, the only exception applying to business owners when the business is sold.
This Just in - It is Now Illegal to be an Employer in California
At least that is the witticism circulating among the labor and employment defense bar these days. And like any good joke, it has an element of truth. Approximately 50% of all court cases filed in the Golden State today are employment claims.
Bookkeeper and Tech Administrator Hijack Staffing Firm
New York staffing firm ATD Technology LLC has filed suit against its former bookkeeper and Chief Operating Officer, alleging that they "have acted in concert to retain control over ATD’s domain name, email accounts and financial books and records
Remote I-9's Ending - What Staffing Firms Need to Know
For the last 40 months or so, staffing firms have had the luxury of completing I-9 forms without the usual "in-person" examination of the employee's documentation demonstrating authorization to work in the US. With the national COVID-19 emergency behind us, that is ending. Last October, U.
Hayes Medical Staffing Sues Jobot and Former Employees
Hayes Medical Staffing has filed a lawsuit in U.S. District Court for the Southern District of Florida against former employees Amy Eichelberg, Allison Patierno, and Scott Simon, as well as their new employer, Jobot LLC. The complaint (attached below) contains claims for breach of contract, misappropriation of trade secrets,
Healthcare Client Payment Defaults on the Rise
By Bill Josey Contact: wjosey@staffinglaw.com
I continue to see cases involving nonpayment of large sums by healthcare clients. As I have mentioned before, the best way for a client to get a free loan is to hire a staffing firm that allows them to "borrow" free
US Department of Labor Sues Staffing Firm and its CEO for Overreaching Employment Agreements
The US Department of labor has filed an enforcement action against Advanced Care Staffing, a Brooklyn, NY firm that focuses on healthcare staffing. The lawsuit, filed in the U.S. District Court for the Eastern District of New York, also names Advance Care's CEO, Sam Klein, as defendant.
Co-Employment is a Reality in Employment Discrimination Claims
I have written in the past about staffing firms suffering from their client's alleged sins. Here are two more cases illustrating the trend, both of which just happen to involve Spherion.
Takaro Jamison v. Daye North America and Spherion Staffing. This Charleston, South Carolina, U.S. District Court
Spherion Sues Terminated Franchisee for PPP Loan Fraud
In an unusual case (Complaint attached below), Spherion has filed suit against a terminated Montgomery, Alabama, franchisee and its owner for, among other things, filing for a fraudulent $278,279 PPP loan under Spherion's name, using temporary employees employed by Spherion as the basis for the loan. The
Wage and Hour Lawsuits in California
California case illustrates how a $237,753 wage claim creates exposure to a $9,472,867 loss in court
There is a wry expression circulating within the employment law defense bar these days: "It is per se unlawful to be an employer in California." This statement derives from
TEKsystems Dragged into Twitter Class Action Over No-Notice Layoffs
It's a trend - staffing firms are getting sued for clients' actions
On April 4, 2023, a noted plaintiff-side employment law firm launched a class action lawsuit in San Francisco against Twitter and staffing giant TEKsystems, alleging that both firms violated the federal and California WARN Acts
Illinois Enacts "Any Reason" Paid Leave Law
I came across an excellent article from Cozen's Austin G. Dieter describing the new Illinois law mandating paid leave for any reason, including vacations. The law, entitled the "Paid Leave for All Workers Act," goes into effect January 1, 2024. Here's a summary from
Adecco Sues Longtime Client for Transferring Temp Workforce to Competitor
Staffing giant seeks to recover $1,497,432.44 in conversion fees - did the client read the contract?
I have not seen a temp workforce transfer case this large in a long time, although I did report on two smaller cases last year. It appears the staffing agency may
Skilled Nursing Center Sues Staffing Giant LRS Healthcare for Economic Losses
Last week I wrote about how a single temporary tech worker on assignment can expose a staffing firm to liability for a massive data breach. This week I report on how two temp nurses on assignment at a healthcare facility caused Massachusetts regulators to bar patient admissions to the client&
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?
