Staffing Agencies

News & Analysis as of

NLRB Will Charge McDonald’s as “Joint Employer” For Franchisee Labor Violations

In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has...more

OSHA Issues Policy Background on the Temporary Worker Initiative

On July 15, 2014, the Occupational Safety and Health Administration (“OSHA”) issued a policy memorandum to its Regional Administrators, explaining in greater detail the agency’s Temporary Worker Initiative (“TWI”). The TWI,...more

NLRB Lawyers Declare Franchisor to be Joint Employer

Last week, the National Labor Relations Board’s general counsel announced its position that McDonald’s Corporation can be considered a joint employer with its franchisees for purposes of unfair labor practice claims. This...more

The Potential Impact of the NLRB’s Position that McDonald’s and its Franchisees are “Joint Employers”

The National Labor Relations Board created a stir last week when it announced that it intends to hold McDonald’s USA responsible for its franchisees’ violations of employment law. The announcement has created concern and...more

Joint Employment Finding Leads to Unexpected $3 Million Liability in Hospital Malpractice Case

When Washington Hospital obtained an insurance policy in 2003 to cover medical claims arising from acts by its employees, its insurer probably did not consider whether hospital employees included workers supplied by a...more

Shatto v. Mcleod: The “Specifics” (Or Lack Thereof) In Circumstantial Evidence

The South Carolina Court of Appeals recently had its second go-around with a workers’ compensation claim filed by a nurse anesthetist against a temporary medical staffing agency and against the hospital where that agency...more

OSHA and Temporary Workers

For a variety of reasons, both economic and non-economic, employers have relied more and more heavily on independent contractors and temporary workers. Temporary workers being employees of temporary agencies, staffing...more

Are Employees Owed Pay for Going Through Security? SCOTUS Will Decide

The U.S. Supreme Court granted cert on March 3, 2014 in Integrity Staffing Solutions, Inc. v. Jesse Busk to resolve a federal circuit split on whether time employees spend in security screenings is compensable under the FLSA....more

Staffing Agencies and the National Labor Relations Act

The American Staffing Association (ASA) recently reported that the trend to hire temporary and contract employees through staffing agencies continues to grow. In 2013 staffing companies employed three million workers per day...more

Germany: A “Permanent Temp Worker” is not the Lessee’s Employee

In Germany, many companies have resorted to utilizing temp workers through a third-party agency instead of hiring their own personnel. Temp workers typically are leased from an agency that employs the temps and assigns them...more

ACA Update: Who Will Staffing Firms Have to Cover Starting Jan. 1, 2015?

The Obama administration's July 2013 announcement, delaying enforcement of the employer mandate under the Affordable Care Act by one year, has affected not only when employees must be offered health insurance coverage but...more

EEOC Priorities May Place Staffing Firms Under Greater Scrutiny

The EEOC identifies “eliminating barriers in recruitment and hiring” among its top six priorities for fiscal years 2013 through 2016, which likely portends an increase in investigations and litigation directed at staffing...more

Entertainment Industry Payroll Companies Must Pay Up To FICA “Cap” On Behalf Of Each Producer For Whom An Individual Performs...

On September 10, 2013, in Cencast L.P. v. United States, 112 AFTR 2d 2013-xxxx (CA Fed. Cir. 2013), the United States Court of Appeals for the Federal Circuit ruled that Cencast Services, L.P., and a number of other...more

EEOC Sues Employment Staffing Agency ILM for Sex-Based Hiring Discrimination

California-Based Firm Refused to Refer Women For Jobs in Tennessee, Federal Agency Charges - NASHVILLE, Tenn. - A California-based private employment and recruiting agency, Industrial Labor Management Group, Inc....more

Staffing Company Pays Fine and Lost Wages for I-9 Violation

Kelly Services, Inc., a Michigan staffing company, recently reached a settlement with the Department of Justice for discrimination related I-9 violations. The violations occurred when the company terminated an individual’s...more

Staffing Agency Employee May Sue Multiple Employers for Wrongful Discharge, Federal Court Rules

Whose employee is it anyway? The answer may be everyone’s. Companies who use staffing agencies to supply workers may be considered joint employers of those workers, even if the staffing agency hires and pays the...more

$100,000 Consent Decree Ends Disabilities Act Lawsuit Against Giant Staffing Agency

EEOC Charged Staffmark Fired Employee Because of Her Prosthetic Leg - CHICAGO - Staffmark Investment LLC, one of the nation's largest commercial staffing companies, will pay $100,000 under a consent decree entered June...more

Yours, Mine, or Ours? Avoiding Joint Employer and Contractor Misclassification

Companies are increasingly using subcontractors, temporary staffing agencies, leased employees, and independent contractors to supplement or, sometimes, replace their regular workforces....more

China to Strictly Regulate Secondment/Staffing Business Model

Amendments to the PRC Labor Contract Law take effect on July 1, adding limitations on employment structures. On July 1, 2013, amendments to the People's Republic of China (PRC) Labor Contract Law will take effect. The...more

EEOC Holds Both Staffing Firms and Staffing Clients Responsible Under EEO Laws

Recently, the EEOC filed a lawsuit against Hire Dynamics, a staffing firm. According to the complaint, after a Hire Dynamics employee filed a charge of discrimination against one of its clients, the staffing firm retaliated...more

Significant Changes In The Regulation Of Temporary Staffing Coming To Massachusetts In 2013

In August 2012, Massachusetts Governor Deval Patrick signed into law a bill that established a series of new legal requirements for temporary staffing agencies and the companies that use their services. The law, called the...more

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