The Department of Labor fires a warning shot to users of staffing providers

“That’s the staffing company’s problem"

The times they are a changin', thanks to the new regulation from Department of Labor

Quoting from the Department of Labor website regarding the new guidance and joint employment definitions:

On January 20, 2016, the Wage and Hour Division released an Administrator’s Interpretation concerning joint employment under the Fair Labor Standards Act and Migrant and Seasonal Agricultural Worker Protection Act. The interpretation identifies common scenarios in which two or more employers jointly employ an employee and are thus jointly liable for compliance. It pulls together all the relevant authorities – statutory provisions, regulations, and case law – to provide comprehensive guidance on joint employment under FLSA and MSPA so that employers can properly analyze a potential joint employment scenario.

 It used to be that a company could employ a contingent workforce and not be concerned about compliance, injuries, or any other related employment factors. The only care and concern was what was going to be the bill rate per hour. Pay the invoice and wash the hands of any other concerns. The contingent portion of the workforce was the staffing company’s problem…not yours.

 Ah, the good ole days. “What, me worry?”

 Time to start the worry…The Department of Labor now will hold you jointly responsible (And subject to the same monetary fines for violations.) along with your staffing company. So what does that mean? Instead of closing your eyes you better make darn sure that your staffing firm is clean and compliant on the below issues. (And this is but a few of the concerns.)

1)  Are your staffing providers sending documented workers eligible to be working in the United Sates? Are they using E-Verify?

2) Is your staffing company paying fair wages and compliant with all overtime payment laws?

3) Are they offering ACA mandated insurance and keeping you off the hook for ACA penalties?

4) Are they classifying all employees correctly? (Want to make instant profit in the staffing business? Classify all the employees as I-9 employees or independent contractors.)

So how are you supposed to make sure that your staffing provider is keeping you out of the dog house and not subjecting you to fines?

Audit and research their processes.  If you request a random audit from your staffing provider and they hesitate, start to question their mode of operation. The risks they are taking a chance on are now jointly your risks as well. 

Now it’s your problem, too.

 Founded in 1968 by Chad Countiss, Crown Services, Inc., started out as a small, family-owned staffing company in Columbus, Ohio. Over the years, we grew from that one office to 40 offices in 12 states, and we continue to grow, opening at least one new office a year. Today, we are headquartered in Columbus, Ohio, and provide staffing services to meet the needs of several key industries: industrial, logistical, medical and professional.

Crown Services website