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March 30, 2012


Headline News
U.S. Economy Grew 3% in Final Quarter of 2011
Small Business Compensation, Hours Jump in March
Resources Connection Inc. Reports Third Quarter Results for Fiscal 2012

Legal Watch
California Employers May Face Increased Criminal Investigations
West Virginia Employers Must Report Income of Independent Contractors

Trends and Research
Social Capital: The Creative Group Survey: Many Companies Plan to Spend More on Social Media This Year
New Social Media Study: Significant Increase in Use of Social Media for Job Searching, Networking by Health Care Professionals
Oklahoma City Leads Large Cities in Job Creation
Employers Expect to Hire More New College Graduates
Easy and Difficult Markets to Recruit Truck Drivers

ASA for You
ASAPro Webinar Next Week—The Conscious and Powerful Interview
Earn Recognition From ASA

Headline News


U.S. Economy Grew 3% in Final Quarter of 2011
Associated Press (03/29/12) Martin Crutsinger; Christopher Rugaber

The U.S. economy grew at an annual rate of 3% in the final quarter of 2011, the best pace in a year and a half, as the U.S. Commerce Department reported no change on March 29 in its previous growth estimate for the October-December quarter. Slower growth in exports than previously estimated was offset by stronger business investment. Economists expect growth has probably slowed to 2% or less in the current January-March quarter.

Small Business Compensation, Hours Jump in March
Reuters (03/29/12)

Small businesses increased hours and compensation for employees in March by the most in more than two years, according to a new survey from Intuit. The average monthly salary for small business employees rose 0.7%, or $18 per worker, according to Intuit, the largest percentage gain since December 2009. That is equivalent to an annual salary of $33,400.

Average monthly hours worked by small business employees increased by 0.5%, or 36 minutes, making for a 25.8-hour workweek. The percentage change was also the largest since December 2009. Intuit notes the gains came even as hiring by small businesses took a step back, with employers adding 65,000 workers to their payrolls in March. However, February's small business payrolls increase was revised up to 75,000 jobs from the previously reported 55,000.

Resources Connection Inc. Reports Third Quarter Results for Fiscal 2012
Resources Global Professionals News Release (03/28/12)

Resources Connection Inc.—through its operating subsidiary, Resources Global Professionals—has announced financial results for its fiscal third quarter ended Feb. 25, 2012. Total revenue for the third quarter of fiscal 2012 was $143.3 million, up 4.1% from last year's third quarter revenue of $137.6 million and down 1.2% on a sequential quarter basis. Revenues in the U.S. were up 4.8% quarter-over-quarter and 1.7% sequentially.

The company's net income for the third quarter ended Feb. 25, 2012, was $4.3 million, or $0.10 per diluted share. This compares with a net income for the third quarter ended Feb. 26, 2011, of $753,000, or $0.02 per diluted share.


Legal Watch


California Employers May Face Increased Criminal Investigations
Lexology (03/26/12) Asa W. Markel

To enhance efforts to stop wage theft, a new criminal investigation unit has been established by the California Department of Industrial Relations, tasked with investigating possible violations of the state's labor code. State law makes it illegal for employers to withhold wages or neglect requirements for semi-monthly paychecks, and civil and criminal penalties for wage and hour law violations have been increased under the recently enacted Wage Theft Prevention Act and Employee Misclassification Act. Although no groundbreaking criminal investigations or prosecutions have been announced yet, experts say employers should understand that enforcement of wage and hour laws is a major focus of governmental and legislative policy.

West Virginia Employers Must Report Income of Independent Contractors
CCH Payroll (03/30/12)

As of June 5, companies doing business in West Virginia must report to the Bureau for Child Support Enforcement the contracting for services with an independent contractor when payment for services is $2,500 or more. New hire reporting mandates require companies to inform the bureau about anyone who lives or works in the state to whom the company expects to pay earnings, as well as the rehiring or return to work of any employee or independent contractor who lives in the state. Companies must submit a report within 14 days of the date of hire, rehire, or return to work.


Trends and Research


Social Capital: The Creative Group Survey: Many Companies Plan to Spend More on Social Media This Year
Robert Half International News Release (03/29/12)

Advertising and marketing executives expect their firms to spend more money on social media this year, according to a recent survey by The Creative Group, a staffing company for interactive, design, marketing, advertising, and public relations professionals. The survey reveals that 53% of respondents expect more marketing dollars to be devoted to Facebook, with 43% anticipating increased spending on Twitter, 41% on Google+, 38% on LinkedIn, and 36% on YouTube. "Although companies plan to spend more on social media, finding the talent needed to oversee these programs can pose a challenge," says Donna Farrugia, executive director of The Creative Group. "Bringing in freelancers who have worked on successful social media initiatives can be helpful, since these professionals can not only develop and implement strategies but also impart their expertise to core team members during the process."
Don't Miss Social Media Expert Simon Mainwaring

Staffing World® 2012, Oct. 9–11 in Las Vegas, features three exciting keynote speakers, including Simon Mainwaring, one of the world's foremost experts on branding and social media. Learn more about Mainwaring other can't-miss Staffing World content at staffingworld.org.

New Social Media Study: Significant Increase in Use of Social Media for Job Searching, Networking by Health Care Professionals
AMN Healthcare Services News Release (03/29/12)

AMN Healthcare's latest "Use of Social Media and Mobile by Healthcare Professionals" survey reveals that more physicians, nurses, allied health professionals, and pharmacists are using social media to look for job opportunities, network with colleagues, and apply for new positions. The percentage of health care professionals using social media for job searches climbed to about 33% in 2011 from 20% in 2010, and of those using mobile job alerts, 10% secured an interview, 14% were offered a job, and 8% obtained employment. In 2010, only 1% secured a job through social media. Additionally, 75% of health care professionals prefer Facebook over other social media sites when searching for jobs. The survey indicates that employers have the opportunity to use social media to recruit health care professionals.
ASA Health Care Section Delivers Sector-Specific Resources

ASA offers sector-specific communities, called membership sections, to represent all sectors of the staffing industry, including health care. It's free for ASA members to join one or more sections. Learn more about the health care section at americanstaffing.net.

Oklahoma City Leads Large Cities in Job Creation
Gallup News Service (03/29/12) Lymari Morales; Joe Daly

Oklahoma City, Pittsburgh, and Richmond, VA, topped Gallup's Job Creation Index among the 50 biggest U.S. metro areas in 2011. More than 33% of employees in each of the top-performing metro areas said their company was hiring or expanding its work force. Oklahoma City topped the list because of the low percentage of employees (12%) who said their company was letting people go or downsizing its work force. The Nashville, TN, and Orlando, FL, areas rounded out the top five metro areas with the highest job creation scores. The largest metro areas in the country—New York, Los Angeles, and Chicago—ranked nearer the bottom of the list than the top. However, every one of the top 50 metro areas has a positive score.

Employers Expect to Hire More New College Graduates
Chicago Sun-Times (03/30/12) David Roeder

Employers across the country intend to hire 10.2% more new college graduates this year than they did last year, according to a survey by the National Association of Colleges and Employers. The 160 employers that participated in the survey said engineering, business, accounting, and computer science majors would comprise most of the hires. The average survey participant reported 116 job openings, compared with 105 last year. Employers in the Western and Southeastern U.S. have the most robust hiring plans, at 33% and 18%, respectively.

Easy and Difficult Markets to Recruit Truck Drivers
Wanted Analytics (03/29/12) Abby Lombardi

Wanted Analytics says more than 42,000 job ads for truck drivers were posted online during the past 30 days, up 42% from the same period in 2011. Year-over-year increases in hiring demand were greatest in Chicago, Dallas, New York, Los Angeles, and Philadelphia, with job ads for truck drivers up 95% in Los Angeles alone. Five locations where truck driving positions will be easiest to fill are Salisbury, MD, Sebastian-Vero Beach, FL, Michigan City-La Porte, IN, Miami, FL, and Bangor, ME. Positions will be harder to fill and ads will remain online longer in Lawrence, KS, Muncie, IN, Owensboro, KY, Corvalis, OR, and Pueblo, CO.


ASA for You


ASAPro Webinar Next Week—The Conscious and Powerful Interview

Tuesday, April 3, 3–4 p.m. Eastern time, attend the ASAPro Webinar "The Art and Process of the Conscious and Powerful Interview," presented by Margaret Graziano, CPC, CTS, of Keen Talent Management. She'll give you tips for attracting and identifying top performers. This Webinar is sponsored by People 2.0.

All Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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Earn Recognition From ASA

Submitting an entry to an ASA award program provides an excellent way for members to be recognized by the industry for their outstanding initiatives. Start preparing your entries now for the National Staffing Employee of the Year, ASA Care Award, and Staffing VOICE Award programs. The deadline for all ASA award entries is Aug. 1.

The National Staffing Employee of the Year is an honoree whose story best captures the staffing industry's key messages—jobs, flexibility, bridge, choice, and training. Give your stellar temporary or contract employee the chance to be the 2013 National Staffing Employee of the Year by nominating him or her for the prestigious distinction.

You can learn about the 2012 honoree, Chris Hoover, by reading the January–February issue of Staffing Success. National Staffing Employee of the Year is sponsored by First Staff Benefits, an ASA corporate partner.

Share your company's outstanding corporate social responsibility initiatives by submitting an entry for this year's ASA Care Award. The Care Awards recognize CSR best practices among ASA member companies and affiliated chapters. A panel of corporate social responsibility experts will review entries and select the winners.

The 2012 Staffing VOICE Award competition, sponsored by ASA corporate partner CareerBuilder, recognizes standout communications efforts in 16 categories that demonstrate vision, originality, innovation, creativity, and effectiveness (VOICE). Visit americanstaffing.net to download an entry form and to learn more about last year's winners.
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March 29, 2012


Headline News
America’s CEOs See Increased Momentum for U.S. Economy
Jobless Claims in U.S. Decline to Lowest Since April 2008

Legal Watch
Congressional Democrats File Brief on Arizona Immigration Law
Alabama Businesses Face April 1 Deadline for E-Verify Enrollment Under Immigration Law
Connecticut Staffing Company Settles Hiring Discrimination Claim
Florida Gov. Rick Scott Signs Bills Giving Florida Businesses More Than $1 Billion in Tax Cuts Over Three Years
We Don’t Need No Education: EEOC Says High School Diplomas Can’t Always Be Required
Charting H-1B Users, as Attention Shifts to L-1
NLRB Rule Could Create Stir in the Break Room

Trends and Research
The Unemployment Divide
Hiring for Mechanical Engineers Gets a Power Boost

ASA for You
Free ASAPro Webinars Next Month—Powerful Interviews, Direct Hire Fees, and Cloud-Based Recruiting
Reduce Workplace Hazards With Employee Safety Best Practices From ASA

Headline News


America’s CEOs See Increased Momentum for U.S. Economy
Business Roundtable (03/28/2012)

Business Roundtable’s first-quarter CEO Economic Outlook Survey indicates an increase in expectations for sales, capital spending, and hiring during the next six months, with the CEO Economic Outlook Survey Index rising to 96.9 in the first quarter from 77.9 in the fourth quarter of 2011. In terms of employment changes during the next six months, 42% of chief executives expect an increase, up from 35% in the fourth quarter. Another 43% of respondents anticipate no changes in employment, up slightly from 42%, and 16% expect employment to decrease, down from 24%. Jim McNerney, chairman of Business Roundtable, says oil prices, political uncertainty in the U.S., and economic weakness in Europe are among factors that could hinder U.S. economic growth.

Jobless Claims in U.S. Decline to Lowest Since April 2008
Bloomberg (03/29/12) Lorraine Woellert

The number of Americans who filed requests for jobless benefits fell by 5,000 last week to a seasonally adjusted 359,000, the U.S. Labor Department reported today, the lowest number since April 2008. The median forecast of economists in a Bloomberg News survey called for 350,000 claims. The four-week moving average fell to 365,000 last week from 368,500.


Legal Watch


Congressional Democrats File Brief on Arizona Immigration Law
Associated Press (03/28/12)

Approximately 60 Democratic members of Congress have filed a friend-of-the-court brief with the U.S. Supreme Court expressing their opposition to Arizona’s 2010 immigration enforcement law and urging that the court uphold earlier legal rulings that bar the state from enforcing the law’s most controversial sections. Arizona Gov. Jan Brewer has asked the Supreme Court to overturn a lower-court ruling that, among other things, barred a requirement that police—while enforcing other laws—question the immigration status of those they suspect of being in the country illegally. The Democratic members of Congress assert that federal immigration law trumps state law. The Supreme Court will hear arguments on the Arizona law on April 25.

Alabama Businesses Face April 1 Deadline for E-Verify Enrollment Under Immigration Law
Associated Press (03/29/12)

Alabama companies must enroll in E-Verify, the federal government’s electronic employment eligibility verification program, by April 1. All companies must comply, regardless of size. Companies that fail to comply may lose their licenses.

Connecticut Staffing Company Settles Hiring Discrimination Claim
Associated Press (03/28/12)

The U.S. Justice Department has reached a settlement with Wilton, CT-based Onward Healthcare over allegations that it posted discriminatory advertisements limiting jobs to U.S. citizens. The health care staffing company has agreed to pay $100,000 in civil penalties and change internal policies and manuals to reflect laws protecting noncitizens who are legally authorized to work. Authorities say Onward Healthcare limited applications to U.S. citizens over the course of a year even though lawful permanent residents and others should have been allowed to apply.

Florida Gov. Rick Scott Signs Bills Giving Florida Businesses More Than $1 Billion in Tax Cuts Over Three Years
Palm Beach Post (Florida) (03/28/12) John Kennedy

Florida Gov. Rick Scott has signed into law a measure that will save businesses $800 million in unemployment payments over the next three years. The new law assesses lower taxes on companies for the benefits paid to unemployed workers and provides training to workers who receive low scores on a work skills test.

We Don’t Need No Education: EEOC Says High School Diplomas Can’t Always Be Required
Lexology (03/22/12)

New guidance from the U.S. Equal Employment Opportunity Commission indicates that employers could be in violation of the Americans With Disabilities Act if they require a high school diploma for certain jobs, particularly if they screen out applicants whose learning disability made it impossible for them to obtain a diploma and they cannot demonstrate that a diploma is job-related and necessary to the business. In a November 2011 letter, which is clarified in the new guidance, the EEOC said employers should determine whether applicants with learning disabilities could perform the job’s essential functions with reasonable accommodation. The guidance says employers should permit these individuals to demonstrate in a way other than with a high school diploma that they qualify for the position. However, employers considering multiple applicants do not have to give preference to the applicant with a disability if another applicant could do the job better.

Charting H-1B Users, as Attention Shifts to L-1
Computerworld (03/28/12)

The U.S. Congress has not yet changed the H-1B visa cap, which stands at 85,000, including 20,000 visas for individuals with advanced degrees. A separate legislative move to make green cards somewhat automatic for individuals with advanced degrees in science, technology, engineering, or math-related subjects has also stalled. However, use of the L-1 visa has been increasing. There is no L-1 cap, although L-1 visa applicants must have specialized knowledge, which is defined by U.S. Citizenship and Immigration Services as “beyond the ordinary and not commonplace within the industry.”

USCIS is considering broadening the definition of specialized knowledge. However, the Economic Policy Institute cautions that a broader definition could result in job losses for highly skilled American workers and exert downward pressure on wages. EPI says its data indicate that top users of the L-1 program are outsourcing companies “whose business model is to first hire L-1 workers to learn the work done by Americans, then to transfer that work overseas.”

NLRB Rule Could Create Stir in the Break Room
Law.com (03/23/12) Cynthia Foster

The U.S. National Labor Relations Board mandate that companies hang a poster in lunch and break rooms notifying workers of their right to join a union and bargain collectively is being viewed by some management-side attorneys as a headache. The notice may spur questions from workers, and management may not respond appropriately to those questions, because much of the U.S. management force is “unsophisticated” when it comes to labor relations, says employment law attorney Fred Alvarez. A questionable response from management could be viewed as anti-union speech and trigger an unfair labor investigation. The poster is scheduled to be hung in most workplaces on April 30.


Trends and Research


The Unemployment Divide
Daily Yonder (03/28/2012) Bill Bishop

The U.S. Bureau of Labor Statistics says unemployment rates in rural counties rose to 9.1% in January from 8.4% in December, though the increase is part of an annual trend due to the laying off of seasonal workers. In fact, the rural unemployment rate has fallen 1 percentage point per year since 2010. Meanwhile, the unemployment rate in exurban counties climbed to 8.6% in January from 7.9% in December. The national unemployment rate in January was 8.8%. Unemployment rates along the coasts and in the Southeast generally are above the national average, while in the middle of the country, especially in the Dakotas and Nebraska, unemployment rates are lower than the national average.

Lawmakers in South Dakota have passed legislation permitting the state to hire a recruitment agency to fill jobs across the state with 1,000 out-of-state workers. ManpowerGroup will be given the assignment, receiving $3,000 for every worker placed with a base salary under $40,000 and $5,100 for every worker placed with a base salary between $40,000 and $80,000.

Hiring for Mechanical Engineers Gets a Power Boost
Wanted Analytics (03/28/12) Abby Lombardi

More than 9,000 job advertisements for mechanical engineers were posted online in February, a 10% increase from a year earlier. Companies in Detroit posted the highest volume of job ads for mechanical engineers, many in engineering services, automobile manufacturing, and automobile part manufacturing. Many of the jobs require applicants to have computer-aided design skills. Recruiters in Detroit are facing a shortage of qualified talent and likely will see a longer time-to-fill than other regions of the country. Other cities with high demand for mechanical engineers include Houston, Los Angeles, Chicago, and Boston.


ASA for You


Free ASAPro Webinars Next Month—Powerful Interviews, Direct Hire Fees, and Cloud-Based Recruiting

Don’t miss the ASAPro Webinars in April on hot topics that can improve your operations and increase profits for your firm.

Tuesday, April 3, is the ASAPro Webinar “The Art and Process of the Conscious and Powerful Interview.” You’ll get tips for attracting and identifying top performers. This Webinar is sponsored by People 2.0.

Thursday, April 12, catch “How to Never Negotiate Direct Hire Fees Again.” Learn how to raise your fees and earn more money. This Webinar is sponsored by People 2.0.

Tuesday, April 24, attend the ASAPro Webinar “Recruiting in the Cloud.” Explore cloud technology as it relates to how you recruit and interact with clients.

All Webinars take place from 3 to 4 p.m. Eastern time. They’re free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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Reduce Workplace Hazards With Employee Safety Best Practices From ASA

Through the establishment and implementation of employee safety best practices, staffing firms and employees can benefit from fewer workplace hazards and exposures, as well as fewer worker injuries, illnesses, and fatalities. Moreover, research shows that worker satisfaction, productivity, collaboration, recruitment, and retention all increase dramatically when employers foster safe and healthy work environments.

ASA created Employee Safety Best Practices and Operating Information to help staffing firms promote and ensure employee safety. These corporate and field-level policies and procedures have proven to increase productivity and the quality of the workforce, as well as decrease turnover and reduce insurance costs. There are three versions of the document for firms operating in industrial staffing; nurse staffing; and office–clerical, professional–managerial, and technical–information technology staffing.

To view the Employee Safety Best Practices and Operation Information, visit americanstaffing.net.
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March 28, 2012

Last Day to Get Hotel Group Rate for the ASA Staffing Law Conference


The ASA group rate at the Hotel Helix ends today; this hotel is about a 10-minute walk from the Westin City Center Hotel—the location for the 2012 ASA Staffing Law Conference, April 17–18, Washington, DC. The Westin is sold out, but ASA has secured a block of rooms at the Hotel Helix for conference attendees.

Make reservations by calling the Hotel Helix at 800-706-1202 and asking for the 2012 ASA Staffing Law Conference group rate. And register today for the Staffing Law Conference.

Headline News

Legal Watch

Trends and Research

ASA for You

Headline News


Staffing Stocks Poised to Outperform on U.S. Job Gains
Bloomberg (03/28/12) Anna-Louise Jackson; Anthony Feld; Alex Kowalski

After nearly nine months of underperformance, the new Bloomberg U.S. Employment Services Index, featuring such staffing companies as Robert Half International Inc., Kelly Services Inc., and Insperity Inc., has climbed 48% since Sept. 22, 2011, while the Russell 2000 Index of small company stocks rose just 31%. With 734,000 temporary and permanent jobs added between December and February, according to the U.S. Department of Labor, Carl Camden, president and chief executive of Kelly Services, says businesses are less pessimistic. Although the portion of temporary workers relative to all employees on nonfarm payrolls climbed 1.86% in February, according to the U.S. Bureau of Labor Statistics, the employment outlook for the next six months reveals some uncertainty. The Conference Board reports that the share of Americans believing there will be more jobs minus the share of those anticipating fewer jobs dropped to minus one percentage point this month.

However, analysts say shares of staffing firms with domestic exposure are performing better than those with European exposure. Moreover, Camden encourages investors to watch the conversion rate of temporary workers taking permanent positions. He notes, “Staffing firms are seeing an increase in temporary-to-permanent conversion that is typical at a second stage of recovery.”

Orders for Durable Goods in U.S. Increased 2.2% in February
Bloomberg (03/28/12) Timothy Homan

Orders for long-lasting U.S. goods climbed 2.2% in February amid strong demand for a broad variety of commercial and military-related products, the U.S. Commerce Department reported today. It was the fourth increase in five months. Economists forecast a 3% gain, according to the median forecast in a Bloomberg News survey.

Corporate equipment upgrades and consumer purchases of new cars are bolstering production, prompting factories to hire and keeping the industry a source of strength for the expansion. Nonetheless, higher fuel costs and slowdowns in Europe and China may limit the pace of manufacturing this year.

Growing Natural Gas Supply to Fuel Jobs
USA Today (03/28/12) Paul Davidson

The fast-growing supply of inexpensive natural gas in the U.S. is setting off a manufacturing revival that is expected to create hundreds of thousands of jobs as companies build or expand plants to take advantage of the low prices. Nearly 30 new chemical plants have been proposed in the U.S. for the next five years, according to the American Chemistry Council. The projects would employ 200,000 workers at the factories and related suppliers, says council president Cal Dooley.

PricewaterhouseCoopers partner Robert McCutcheon estimates inexpensive natural gas could help U.S. manufacturers save $11.6 billion a year and create more than 500,000 jobs by 2025. Affected industries include chemical, steel, and agriculture.

Recent Job Growth Not a Fluke: White House Aide
Reuters (03/27/12) Jason Lange

Although Wall Street analysts credit a mild winter and possible seasonal adjustment problems in the data with playing a key part in driving down the unemployment rate since last summer, Alan Krueger, chairman of the White House Council of Economic Advisers, says there is more evidence that a broad-based economic recovery is taking hold. He says parts of the U.S. that are typically less affected by cold weather saw similar declines in the unemployment rate as did the U.S. as a whole. He says he is “skeptical that seasonal factors are skewing our key statistics in a major way.” The Council of Economic Advisers says the economy will create about two million jobs this year.


Legal Watch


States’ Anti-Illegal Immigration Bills Hit Roadblocks
USA Today (03/27/12) Alan Gomez

Utah, Alabama, Georgia, South Carolina, and Indiana passed illegal immigration laws on the heels of Arizona, but Republican lawmakers in other states have halted or abandoned similar bills to see how legal challenges to these laws and the upcoming election play out. The U.S. Supreme Court is slated to review Arizona’s landmark 2010 illegal immigration law in April. A bill in Missouri has stalled after passing a Senate committee, and lawmakers in Virginia and Kansas do not expect any bills to advance this year. Meanwhile, legislation proposed in Mississippi has been scaled back, eliminating provisions that would have allowed law enforcement to conduct roadside immigration checks, required school officials to verify students’ immigration status, and forced residents to carry identification papers.

Health Care Security Ordinance Annual Reporting Form Now Available
San Francisco Office of Labor Standards Enforcement (03/27/12)

The 2011 Health Care Security Ordinance Annual Reporting Form is now available for online submission. The HCSO requires the San Francisco Office of Labor Standards Enforcement to collect information on a yearly basis from companies regarding their health care expenditures. To avoid penalties of $500 per quarter, “covered employers” must submit the ARF by April 30, 2012. The 2011 ARF has been updated this year to reflect the November 2011 Amendment to the HCSO, which went into effect on Jan. 1, 2012. Employers should read the Instructions for Completing the 2011 HCSO Annual Reporting Form before they fill out and submit the online form. The instructions and the ARF itself are now available at the OLSE Web site.
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Staffing Firms in San Francisco May Be Affected

The San Francisco Office of Labor Standards Enforcement announced several key changes in the city’s health care security ordinance in January. Visit americanstaffing.net for more information.

Federal Agencies Told to Take Into Account Cumulative Costs of Regulations on Business
Bloomberg BNA (03/27/12) Cheryl Bolen; Stephen Lee

Cass Sunstein, administrator of the U.S. Office of Information and Regulatory Affairs, has issued a memorandum to all federal agencies asking them to be sensitive to the costs and cumulative impact regulations pose to businesses. The memo also asks agencies to identify opportunities to harmonize and streamline various rules. The memo asks agencies to pay special attention to small and start-up companies.
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House Committee OKs Bill to Freeze Federal Rules Until Unemployment Drops
Bloomberg BNA (03/27/12) Stephen Lee

The U.S. House Judiciary Committee has approved bill HR 4078, which would prohibit federal agencies from advancing new significant regulations until the unemployment rate falls to 6%. The proposed Regulatory Freeze for Jobs Act, sponsored by Rep. Tim Griffin (R-AR), now heads to the full House for consideration. The committee also approved a manager’s amendment that would allow the president to submit a regulation to Congress that does not fall under one of the bill’s other exemption parameters. Those exemptions include rules that are considered “necessary because of an imminent threat to health or safety or other emergency, for the enforcement of criminal laws, or for U.S. national security, or issued to implement an international trade agreement.”
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Trends and Research


2012 IT Budgets Up by 20% but Employer Fears Loom Regarding Losing IT Talent
MarketWatch (03/27/12)

A new survey of more than 700 director to chief information officer level executives by Protech, an information technology search and staffing firm in Boca Raton, FL, shows that 42% of tech leaders expect to boost IT staff in 2012. Moreover, 57% of respondents are worried about losing top IT talent, with 58% citing compensation as the top reason.

Additionally, the survey shows a greater increase in direct hiring than in temporary staffing. Deborah Vazquez, chief executive of Protech, says, “Employers are more confident about making longer-term hiring decisions in IT, which can further propel corporate growth and streamline operations.” The best perks offered by employers were flextime, telecommuting, and bonuses, and the average pay increase was 3.5% last year, compared with 2% in 2010. Vazquez says, “We are effectively now in an employee-driven market due to low unemployment in IT and specialized candidates weighing multiple job offers.”

Obama, Unions Work to Bring Back Overseas Jobs
The Street (03/27/12) Ted Reed

Over the past months, companies in the automobile and airline industries have repatriated or agreed to repatriate thousands of jobs from overseas in auto manufacturing, airline call centers, and other areas. US Airways, for example, brought back 400 reservation agents’ jobs from the Philippines to the U.S. over the past year. President Obama is supporting the efforts, in January hosting an “Insourcing American Jobs” forum at the White House. Meanwhile, U.S. Rep. Tim Bishop (D-NY) is sponsoring a bill that would prevent businesses that outsource U.S. call center jobs from being able to obtain federal grants and loans.


ASA for You


Staffing World® 2012 Keynote Speaker Announced—Simon Mainwaring of We First

During his exciting closing general session at Staffing World, “Use Technology and Social Media to Build Community, Profit, and Positive Impact,” Simon Mainwaring—one of the world’s foremost experts on branding and social media—will present strategies that business leaders need to leverage technology and build stronger company brands and profits. Drawing from best practices and case studies of Fortune 500 brands, Mainwaring leads a powerful session designed to give companies the confidence and action steps to become social technology leaders.

Staffing World will be Oct 9–11 in Las Vegas. Don’t miss this opportunity to get lessons you can apply at your firm. For more information and to register, visit staffingworld.org.
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Reduce Legal Risk With Nurse Staffing Firm Best Practices From ASA

Nurse staffing is a highly regulated segment of the staffing industry. To help protect nurse staffing firms from legal risk and help them better serve their clients and employees, ASA created Nurse Staffing Firm Best Practices and Operations Information. This information was developed by the ASA health care section policy council, which is composed of ASA health care staffing firm company representatives committed to the development of education, tools, and resources for the health care staffing sector.

The best practices address compliance with laws and regulations; determination of applicant experience and qualifications; client relations; and complaint, grievance, and incident management.

In addition to the best practices, these documents are available:
  • Employment Application
  • Supplemental Employment Questionnaire
  • License or Certification Verification Form
  • Skills Checklist for a registered nurse
  • Reference Check Form
  • Orientation Verification
  • Acknowledgement of OSHA Training Requirements
  • Employee Health Form
  • Office of Inspector General Exclusion Search
  • Hepatitis B Consent and Vaccination Record
  • Model Agreement for Health Car Staffing (including Sample Rate Schedule, Sample Benefits Waiver for Assigned Employees, Sample Confidentiality Agreement for Assigned Employees)
  • Initial Shift Evaluation of Supplemental Staff Form
  • Client Feedback Form
To view the Nurse Staffing Firm Best Practices and Operations Information, visit americanstaffing.net.
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March 27, 2012

ASA: Staffing Employment Up 18.3% Since the Start of 2012


Staffing employment in March is up 4.5% from March 2011, according to the ASA Staffing Index.

The index for March is 89, up two points from the 87 reported for February. Since the beginning of 2012, temporary and contract employment has grown 18.3%, according to the index.

To view weekly index data, visit americanstaffing.net.
Headline News

Legal Watch

Trends and Research

ASA for You

Headline News


Bernanke: Unemployment Insurance May Encourage People to Stay in Labor Force
Dow Jones Newswires (03/26/12) Kristina Peterson

Federal Reserve chairman Ben Bernanke told attendees at the annual conference of the National Association for Business Economics that unemployment insurance may help encourage workers to stay in the labor force. “I would not attribute the extent of long-term unemployment or the very high level of unemployment to unemployment insurance,” Bernanke said. Lawmakers have debated how long the federal government should provide unemployment insurance to laid-off workers, with some claiming it could lessen unemployed workers’ motivation to find another job.

Bernanke said that the slow rate of wage growth is likely consistent with his view that the high rate of long-term unemployment is due to cyclical factors, rather than structural reasons. He also noted that wages are not pushing up inflation. “Wages themselves are not a major concern for inflation,” he said. “We still need to be concerned about commodity prices and other factors.”

Kelly Services Finds Workers in Demand
Minneapolis Star Tribune (03/26/12) Dee DePass

Kelly Services released a report on March 26 indicating positive news on the labor front. “The outlook for college graduates shows demand for health care, information technology, and engineering degrees since those sectors have continuing growth,” the report said. There is still a shortage of qualified engineers, which bodes well for degreed job seekers, according to the report.

In its recent Global Workforce Survey, Kelly Services found that online job boards have become the primary way job seekers look for work. It also found that self-employment is growing in popularity because it helps job seekers gain “greater control” over their career path and may improve work-life balance.


Legal Watch


Keep Your Ears Peeled: Employment Law Update on the FLSA’s ‘Antiretaliation’ Provision
JDSupra (03/21/2012)

The Fair Labor Standards Act regulates, among other things, the payment of overtime. It includes an “antiretaliation” provision that prohibits an employer from retaliating against an employee “because such employee has filed any complaint or instituted or caused to be instituted any proceeding under or related to this chapter.” In 2011, the U.S. Supreme Court held in Kasten v. Saint-Gobain Performance Plastics Corp. that an oral complaint could fall within the purview of FLSA’s antiretaliation provision, though it declined to address the issue of whether the oral complaint had to be made to a government agency or whether an internal, intracompany complaint would be covered under the antiretaliation provision.

The Fourth Circuit Court of Appeals recently joined the majority of other circuits by holding, in the case of Minor v. Bostwick Laboratories, that an internal complaint can be protected under the FLSA’s antiretaliation provision. The Fourth Circuit’s opinion emphasizes the importance for employers to be on the lookout and “keep their ears peeled” for internal complaints. Given the potential consequences of failing to identify or otherwise mishandling such complaints, employers should review their internal grievance policies—including checking for antiretaliation language—and update them as needed. Once a complaint has been processed through a company’s grievance policy, it is of paramount importance that it be directed to and administered by appropriate members of company management.

W-2 Reporting Requirements for Health Plan Costs Will Apply Soon
Lexology (03/19/12) Todd M. Cleary; Sven E. Skillrud

Companies soon will be required to report the aggregate cost of employee health plan coverage on Forms W-2 issued for 2012 (i.e., W-2s given to employees in January 2013). Unless an exemption applies, employers will be required to report the aggregate cost of all “applicable employer-sponsored” health plan coverage given to (1) the employee, and (2) anyone covered by the plan because of his or her relationship to the employee. Reportable costs include both the company’s and employee’s contributions.

According to the U.S. Internal Revenue Service, the following benefits are generally excluded from health plan cost reporting: long-term care, accident or disability income insurance or supplemental liability insurance, health reimbursement arrangement benefits, stand-alone dental and vision plan coverage, and money contributed to a health savings account or medical savings account.

Unhappy Employee? Carefully Track Complaints
Business Management Daily (03/18/12)

In the case Atkinson v. North Jersey Developmental, et al., a retired worker sued her former employer for alleged race discrimination, insisting that a reduction in her workload constituted an adverse employment action. However, her case was dismissed because the employer was able to document that she had requested the lighter workload herself. The employer also had documented every complaint made by the worker and how each of her requests was accommodated. Experts say the case emphasizes the importance of employers carefully documenting worker complaints.

Title VII Protects Both Current and Former Employees From Discriminatory Adverse Employment Actions
Lexology (03/19/12) Maria Greco Danaher

In Gerner v. County of Chesterfield, the Fourth U.S. Circuit Court of Appeals reiterated that both current and former employees can bring an action under Title VII of the Civil Rights Act. The case involved a woman whose position as human resources director for Chesterfield County, VA, was eliminated as part of a reorganization in 2009 and who was terminated for allegedly refusing to collect three months of pay and benefits as a severance in exchange for resigning and signing a waiver of legal claims against the county. The employee filed a lawsuit that accused the county of giving male former directors of county departments deals of up to six months of pay and benefits or putting them in positions with less responsibility for the same pay to “enhance their retirement benefits.”

The Fourth Circuit pointed to the U.S. Supreme Court’s ruling in Hishon v. King & Spalding, in which benefits may provide the basis for a Title VII claim if it is “part and parcel of the employee relationship.” Additionally, the Fourth Circuit said Title VII language protects “any individual.”


Trends and Research


Work Force Mobility Is Now at an All-Time Low
Business Insider (03/26/12) Matt Ferguson

A survey by CareerBuilder, an ASA corporate partner, suggests that the skills gap explains in part why some positions remain open for months when more than 12 million people are unemployed. Ferguson says the downward trend in work force mobility also has played a role, citing U.S. Census Bureau data indicating that Americans changing residences fell to a more than 60-year low in 2011.

However, a survey by CareerBuilder and CareerRelocate.com found that 44% of workers would relocate to take advantage of a job opportunity. Some 20% of workers laid off in 2011 who found new jobs relocated to a new city or state. Research indicates that employers looking for workers in engineering, information technology, business development, sales, finance, marketing, and legal services are more likely to cover relocation expenses.

Financial Regulations Bring New Challenges: Hiring Compliance Officers
Wanted Analytics (03/26/12) Abby Lombardi

Around 1,200 job ads for Compliance Officers have been placed by more than 300 financial services firms nationwide over the past 60 days, up 49% from the same period last year in response to new regulations tied to the Dodd-Frank Act and the pending Volcker Rule. Wanted Analytics says demand for compliance officers is high in New York, Dallas, and Chicago, where recruiters will find it difficult to fill job openings. Job ads stay online in New York City, for instance, for 6.5 weeks, compared with the 5.5 week national average.


ASA for You


Staffing Law Conference Hotel Group Rate—Through Tomorrow

The ASA group rate at the Hotel Helix has been extended to tomorrow, March 28; this hotel is about a 10-minute walk from the Westin City Center Hotel—the location for the 2012 ASA Staffing Law Conference, April 17–18, Washington, DC. The Westin is sold out, but ASA has secured a block of rooms at the Hotel Helix for conference attendees.

Make reservations by calling the Hotel Helix at 800-706-1202 and asking for the 2012 ASA Staffing Law Conference group rate.

Among the valuable content presented at the upcoming ASA Staffing Law Conference is a can’t-miss session—”The Regulators Speak: Enforcement Agendas of DOL, EEOC, and DOJ.” Senior-level agency representatives discuss wage and hour, immigration, and antidiscrimination enforcement agendas and efforts, and what those mean for staffing firms. Register today.
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Master Complex Work Force Management Tools With Best Practices From ASA

The evolution of vendor management systems (VMSs) and managed service providers (MSPs) has changed the way the staffing industry does business. ASA created best practices for vendor management systems and managed service providers to help staffing firms master complex work force management tools and better serve their clients. The best practices comprise four documents that address a broad range of topics such as implementation, order and requisition management, candidate submittal, financial management, and staffing firm engagement.

For example, “Protecting the Financial Interests of Staffing Firms and Buyers in VMS and MSP Arrangements” outlines practical steps that staffing firms and buyers can take to mitigate the financial and business risks associated with work force management services.

The VMS and MSP Best Practices page on americanstaffing.net includes several resources to help alleviate ASA members’ confusion about work force management solutions.
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March 26, 2012

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Headline News


Bernanke Notes Labor Market Concerns
Wall Street Journal (03/26/12) Ben Casselman

Federal Reserve chairman Ben Bernanke said today that high long-term unemployment is likely caused more by cyclical rather than structural factors, and that extremely low interest rates should continue to bring down the jobless rate. Bernanke cited a wide range of indicators indicating a “notable” drop in unemployment. However, he cautioned that conditions remain “far from normal,” with uncertainty lingering about whether the relatively rapid improvement over the past year is sustainable.

“Further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies,” Bernanke said in prepared remarks to the annual conference of the National Association for Business Economics.

Time Not on Side of the Jobless
Wall Street Journal (03/26/12) Ben Casselman

The hiring picture has improved in recent months, but not for everyone. In February, 3.5% of the U.S. work force was unemployed for more than six months, compared with 4.0% in February of 2010, a smaller decline than in the overall jobless rate. The average unemployed worker has been jobless for 40 weeks, a mark that has barely budged in the past six months. The diverging fortunes of the long- and short-term unemployed suggests the emergence of deeper, structural problems that could persist long after the rest of the economy recovers. Rather than returning to work as the economy recovers, as they have after past U.S. recessions, the long-term unemployed could effectively break off from the normal job market.

Economists term this prospect “hysteresis,” a term borrowed from chemistry meaning that the past affects the present. The U.S. has little history with such problems, and even in the early 1980s, when the U.S. unemployment rate got close to 11% at one point, the average length of unemployment, at its peak, was just over 21 weeks, and fell quickly from there. Most economists believed that the more flexible, business-friendly American labor market would protect the U.S. from hysteresis, but some are re-evaluating that assumption. They argue that in the wake of a severe recession, the lines between cyclical and structural unemployment can become blurred.

California Jobless Rate Holds Steady as More People Seek Work
Los Angeles Times (03/24/12) Alejandro Lazo

California employers added 4,000 jobs in February, signaling slow but steady improvement in the labor market, according to figures released on March 23 by the California Employment Development Department. The state’s unemployment rate remained unchanged at 10.9% as more workers looked for employment. The largest number of new positions was added in the information sector, which includes software and motion pictures, followed by manufacturing, educational and health services, and professional and business services.

The number of temporary workers hired by employers in California has been increasing over the last three months, says Jerry Nickelsburg, a senior economist with the UCLA Anderson Forecast from the Anderson School of Management at the University of California–Los Angeles. “This rise in temporary workers is at least in part showing the leading edge of employers beginning to bring employees on,” Nickelsburg says. “If the economy continues to see growth, they will continue to convert those into permanent jobs.”


Legal Watch


Senators Ask Feds to Probe Requests for Passwords
CBS News (03/25/12)

Sens. Chuck Schumer (D-NY) and Richard Blumenthal (D-CT) are asking U.S. Attorney General Eric Holder to look into whether companies that ask applicants for Facebook passwords during job interviews are violating federal law. The senators are sending letters to the heads of the U.S. Department of Justice and the U.S. Equal Employment Opportunity Commission. On Friday, Facebook warned companies not to ask job applicants for their passwords and threatened legal action against acts that violate its policy against sharing passwords. A Facebook executive warned that if a company learns that an applicant is a member of a protected class, the company may be vulnerable to discrimination claims if it doesn’t hire the applicant.

Employer Still Liable Despite Theft of Workers’ Compensation Check: Court
Business Insurance (03/23/12)

In the case of Barrett Business Services Inc. vs. Workers’ Compensation Appeals Board, a California appellate court has ruled that even though a company’s $17,000 check was stolen and cashed, the company still must pay the workers’ compensation claimant who never got the check. Rafael Rivas worked for Barrett and injured his back in 2005, but changed addresses numerous times before his claim was settled. Barrett mailed the settlement check to Rivas at an out-of-date address, and a “Rafal Rivas” fraudulently cashed the check. Barrett argued that because it mailed the check to Rivas at an address specified in a compromise and release agreement, it had fulfilled its duties in the matter. However, the court disagreed.

Does Your Company Have an LM-10 Reporting Deadline Soon?
Lexology (03/19/12) Bernard J. Bobber

Employers that have some reportable activity as defined by the Labor-Management Reporting and Disclosure Act of 1959 must file a Form LM-10 (Employer Report) with the U.S. Department of Labor. The law requires certain payments of money or other items of value to a union, union official, labor relations consultant, or employee to be disclosed, even if the company’s employees are not represented by a union. For companies using the calendar year as their fiscal year, the reporting deadline is March 30. Under LMRDA, the payments to be reported must be greater than $250 and include such things as gifts or services given to employees on the condition that they will not organize, paying a labor relations consultant to plant agents among employees to report on union organizational activities, paying to print or disseminate pamphlets and other advertisements that threaten to close or move plants if organized, or taking out a union official with whom collective bargaining agreements are being negotiated. The report must be signed under oath by the employer’s president and treasurer, and willful violations could result in criminal and civil penalties.

Don’t Get Socked With a Retaliation Charge
HR.BLR.com (03/19/12)

The U.S. Equal Employment Opportunity Commission says that for 2011, it received more complaints about retaliation than any other kind of complaint, such as race or disability discrimination. Retaliation—finding a pretext to fire or transfer an employee because the employee complained about mistreatment by a supervisor, improper company practices, sexual harassment, or anything similar—is illegal. Furthermore, retaliation claims are easier to prove than discrimination claims.

To address the surge in retaliation claims, the U.S. Department of Labor has issued three new fact sheets on the issue: Fact Sheet #77A: Prohibiting Retaliation Under the Fair Labor Standards Act; Fact Sheet #77B: Protection for Individuals Under the FMLA; and Fact Sheet #77C: Prohibiting Retaliation Under the Migrant and Seasonal Agricultural Worker Protection Act.


ASA for You


Learn the Legal Do’s and Don’ts of Electronic Record-Keeping

The 2012 ASA Staffing Law Conference, April 17–18 in Washington, DC, features a packed agenda devoted to legal issues facing staffing firms. Among the can’t-miss sessions is “Paperless HR: The Do’s and Don’ts of Electronic Record-Keeping.”

Because technology continues to advance at a rapid pace, the days of recording placements on index cards are long gone and the paperless approach to personnel records is here. Learn how to go paperless as well as the legal do’s and don’ts for completing and storing electronic Forms I-9 and other personnel records.

Register for the 2012 ASA Staffing Law conference.
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Staffing Law Conference Update: Hotel Group Rate Extended to March 28

The ASA group rate at the Hotel Helix has been extended to Wednesday, March 28; this hotel is about a 10-minute walk from the Westin City Center Hotel—the location for the 2012 ASA Staffing Law Conference, April 17–18, Washington, DC. The exact distance between the hotels is 0.3 miles. The Westin is sold out, but ASA has secured a block of rooms at the Hotel Helix for conference attendees.

Make reservations by calling the Hotel Helix at 800-706-1202 and asking for the 2012 ASA Staffing Law Conference group rate. The group room rate is $259 (plus tax) per night for single or double occupancy (includes complimentary Internet access), and is subject to room availability.

Among the valuable content presented at the upcoming ASA Staffing Law Conference is a can’t-miss session—“The Regulators Speak: Enforcement Agendas of DOL, EEOC, and DOJ.” Senior-level agency representatives discuss wage and hour, immigration, and antidiscrimination enforcement agendas and efforts, and what those mean for staffing firms. Register today.
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March 23, 2012

Headline News

Legal Watch

Trends and Research

ASA for You

Headline News


For Long-Unemployed, Hiring Bias Rears Its Head
Associated Press (03/23/12)

With close to 13 million Americans unemployed last month, according to the U.S. Department of Labor, there are concerns that employers may be discriminating against those who have been out of work for long periods of time. The National Conference of State Legislatures reports legislation that would prohibit discrimination against the unemployed in job ads, direct hiring, or screenings by staffing firms is being considered by lawmakers in several states.

In Connecticut, proposed legislation would prohibit discrimination in job ads, but lawmakers might not go as far as allowing unemployed job seekers to file complaints with the state’s human rights commission or to sue for alleged discrimination. The Connecticut Business and Industry Association says firms oppose measures that would allow workers to sue for discrimination but consider a ban on discriminatory job ads to be reasonable. However, the National Employment Law Project is pushing states to go beyond prohibiting discriminatory ads to stop employers, including staffing firms, from excluding unemployed job seekers from consideration for employment.

Terri Michaels, manager of Stewart Staffing Solutions in Hartford, CT, criticizes hiring practices that screen out unemployed job seekers. She says that despite the policies of small staffing companies such as hers, some large employers have an unspoken policy against hiring applicants who have been out of work for two years or more because they want workers with a stable job history and recent references. “They won’t be able to say it but they’ll act on it,” says Michaels.

Leading Economic Index for U.S. Increases
The Conference Board News Release (03/22/12)

The Conference Board Leading Economic Index for the U.S. increased 0.7% in February to 95.5, following a 0.2% increase in January and a 0.5% increase in December. Ataman Ozyildirim, economist at the Conference Board, says: “continued broad-based gains in the LEI for the U.S. confirm a more positive outlook for general economic activity in the first half of 2012, although still subdued consumer expectations and the purchasing managers’ index for new orders held the LEI back in February. The board’s measure of current economic conditions has also been rising as employment, income, and sales data all continue to improve. Industrial production, however, has not yet picked up strongly.”

Jobs Are Going Back to the Future
Financial Times (03/22/12) Peter Whitehead

Denis Pennel’s position as managing director of Ciett, the international confederation of private employment firms, gives him a broad perspective on workplace trends—and he has clear views on where they are heading. “We think permanent employment will decrease,” he says, “but agents advising staff and acting as contractors will increase. Intermediaries are more and more involved in employment.” Pennel notes that “free agents, or self-employed people, are already a big proportion of the work force—and it will increase.”

Pennel sees social networking as the great enabler, creating a “community” of contributors rather than a traditional “company.” The recruitment sector has a vital role in managing the relationships and the intricate legal and contractual complexities that will arise. The recruitment industry is “all about matching supply and demand for labor,” Pennel notes. “There are more diverse skills and expectations today, and human resources will be individualized in the future—no more one-size-fits-all policies. Individuals will be choosing who they want to work for and the third-party intermediaries will look at skills, soft skills, and personalities in matching supply and demand. So recruiters can become HR departments.”


Legal Watch


Wilkins Health Care Company Settles Equal Employment Opportunity Commission Complaint
Pittsburgh Tribune-Review (03/21/12)

Capital Healthcare Solutions has agreed to pay $12,000 to settle a 2011 lawsuit brought by the U.S. Equal Employment Opportunity Commission. The suit claims the health care staffing firm refused to hire a nursing assistant who is HIV positive. The EEOC says in the lawsuit that the staffing firm offered to hire an applicant in September 2010 but subsequently rescinded the offer after learning from his pre-employment physical that he was HIV positive. In addition to the $12,000 payment, the staffing firm has agreed to conduct four hours of training on how to evaluate the physical and medical qualifications of potential employees.

ADA May Soon Require Disabled Employees Be Given Super Preference for Internal Vacancies
Lexology (03/19/12) Christopher Ward

In the case EEOC v. United Airlines Inc., the U.S. Equal Employment Opportunity Commission filed suit against the airline for new reasonable accommodation guidelines stating that disabled workers no longer able to perform the essential functions of their jobs could be accommodated through a job transfer, but they could not be guaranteed the vacant position if there are superior candidates seeking that position. The EEOC argued that under the Americans With Disabilities Act, disabled workers who are minimally qualified for the vacant position must be given priority.

The Seventh Circuit granted the employer’s motion to dismiss and later affirmed its previous decision when the EEOC appealed, noting that it addressed the same issue in a 2000 ruling. However, the court said it could not overturn its previous ruling unless the governing statutory language had changed or a U.S. Supreme Court decision directly undermined its previous decision. Thus, observers believe employers should act with caution when transferring disabled employees.

Employees and Former Employees Have Up to Three Years to File Suit Under FMLA
Business Management Daily (03/18/12)

Just because a former employee misses a state agency or U.S. Equal Employment Opportunity Commission deadline to file a complaint doesn’t mean companies can’t or won’t be sued. If the employee’s claim is related to the Family and Medical Leave Act, he or she has up to three years to file a federal lawsuit. For routine violations, employees may wait up to two years before suing, but for a “willful” violation, they have up to three years to file.

Employer Safety Incentive and Disincentive Policies and Practices
OSHA (03/12/12)

The U.S. Occupational Safety and Health Administration says the entire work force is at risk if employees feel they cannot report illness or injuries. Under section 11 (c) of the OSH Act, employees’ ability to report work-related injuries or illnesses is considered a core employee right. Earlier this month, OSHA issued a new memorandum on this topic.


Trends and Research


Labor Department: Green Jobs Account for 2.4% of Employment in 2010
Washington Post (03/23/12) Sarah Halzack

“Green” jobs comprised 2.4% of U.S. total employment in 2010, according to the U.S. Department of Labor. According to the DOL’s first-ever survey of green goods and services jobs, the U.S. had 3.1 million green jobs in 2010. Manufacturing contributed the greatest number of green jobs of any private-sector industry. Construction and professional, scientific, and technical services also contributed large numbers of green jobs. California had more green jobs in 2010 than any other state and the District of Columbia, representing 2.3% of total employment.

Demand for Industrial Engineers Reaches a Four-Year High
Wanted Analytics (03/22/12) Carolyn Menz

Job postings for industrial engineers rose 27% in February compared with the same month in 2011. Demand is recovering well from its recessionary low in June 2009, up 207%. Companies in Los Angeles posted the most jobs, a 50% increase from a year ago. Houston, Detroit, Chicago, and New York rounded out the list of the top five metro areas with an increase in hiring demand for industrial engineers.


ASA for You


Staffing Law Conference Update: Hotel Group Rate Extended to March 28

The ASA group rate at the Hotel Helix has been extended to Wednesday, March 28; this hotel is about a 10-minute walk from the Westin City Center Hotel—the location for the 2012 ASA Staffing Law Conference, April 17–18, Washington, DC. The exact distance between the hotels is 0.3 miles. The Westin is sold out, but ASA has secured a block of rooms at the Hotel Helix for conference attendees.

Make reservations by calling the Hotel Helix at 800-706-1202 and asking for the 2012 ASA Staffing Law Conference group rate. The group room rate is $259 (plus tax) per night for single or double occupancy (includes complimentary Internet access), and is subject to room availability.

Among the valuable content presented at the upcoming ASA Staffing Law Conference is a can’t-miss session—“The Regulators Speak: Enforcement Agendas of DOL, EEOC, and DOJ.” Senior-level agency representatives discuss wage and hour, immigration, and antidiscrimination enforcement agendas and efforts, and what those mean for staffing firms. Register today.
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Follow @staffingtweets for Real-Time Industry Updates

Receive real-time staffing industry news by following ASA on Twitter.

ASA tweets keep you informed about breaking news and developing trends that could affect your profitability. Twitter followers receive the latest updates on employment data, professional development programs, and legal and legislative actions.

You can also publicize news about your company by sending a tweet to @staffingtweets to be retweeted to ASA followers.
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March 22, 2012

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Headline News


Jobless Claims in U.S. Fall to Lowest Level in Four Years
Bloomberg (03/22/12) Shobhana Chandra

The number of Americans who filed requests for jobless benefits fell by 5,000 last week to 348,000, the lowest level since February 2008, the U.S. Department of Labor reported today. Claims from two weeks ago were revised up to 353,000 from 351,000. The median forecast of 46 economists in a Bloomberg News survey projected 350,000. The number of people on unemployment benefit rolls and those getting extended payments also fell. Dismissals have been waning and reports show companies are becoming more willing to expand work forces amid evidence sales are improving.

Analysis: U.S. Job Gains Hint at More Spending and Hiring
Reuters (03/22/12) Lucia Mutikani

Economists say the recent acceleration in U.S. job growth could create a virtuous cycle, generating additional income for more Americans and leading to increased spending, faster growth, and further hiring. On an annualized basis, the 734,000 jobs created over the past three months probably generated about $360 billion in additional income, when taking into account the modest rise in hourly earnings and longer working hours.

Strong job growth and healthy income gains have been the missing ingredients in the recovery from the 2007-09 recession. While growth in per capita wages is still restrained by the huge number of Americans hunting for work, the situation should improve as the labor market strengthens. “With employment gains starting to accelerate, it’s certainly something that will push income growth to be more consistent with employment growth, and therefore it creates a virtuous cycle that we are all waiting for,” says Torsten Slok, a senior economist at Deutsche Bank in New York. Every gain of 100,000 in payrolls should lead to monthly income growth of 0.2% to 0.3%, according to Millan Mulraine, senior macro strategist at TD Securities in New York.

Minnesota Ups Minority Hiring Goals as Twin Cities Grow More Diverse
TwinCities.com (03/21/12) Frederick Melo

Minnesota Gov. Mark Dayton’s office and the Minnesota Department of Human Rights has announced new county-specific targets for minority hiring. Construction companies funded by the state will have to double or almost triple their minority hiring goals. The minority hiring goal in Hennepin and Ramsey counties will be 32%. The goal in Annoka, Carver, Dakota, Scott, and Washington counties will be 22%. Previously the goal was 18% for especially large projects and 11% for smaller projects. The goal for female hiring will be 6%.


Legal Watch


Pre-Employment Background Checks for Temporary Employees
Lexology (03/14/12) Ed Magarian; Jillian Kornblatt

Experts say businesses that contract with staffing firms to engage workers with access to consumer identity information should ensure the staffing firm conducts background checks for employees placed at their company, and the background checks should be similar to those performed on their permanent employees. The contract should state the method and conditions under which the staffing firm discloses negative information uncovered by the background check prior to placing a temporary worker and the type of approval granted by the employer before placement occurs.

Although employers may avoid liability for certain acts committed by temporary workers employed by a staffing firm, they may still be found liable if they were negligent in selecting the staffing firm that conducted the background check or fail to exercise appropriate oversight or training of the temporary worker. Employers also must comply with laws governing the use of information gleaned from pre-employment background checks.

From the Office of Special Counsel: Anatomy of an OSC Investigation
Lexology (03/15/12) Dawn Lurie

Investigations by the U.S. Office of Special Counsel for Immigration-Related Unfair Employment Practices should be taken seriously, and companies contacted by the OSC should immediately hire experienced immigration attorneys and assess potential liability at additional sites, if applicable. The initial investigation will be completed within 120 days, by which time the OSC determines whether to dismiss the charge or investigate for an additional 90 days.

Internal reviews of employment verification practices should be central to companies’ compliance strategies. Companies must make sure they follow the Immigration and Nationality Act’s antidiscrimination provisions and treat all workers the same by not arbitrarily requiring workers to provide new or updated Form I-9 information or document copies.

Delve Deeper at the ASA Staffing Law Conference

Seema Nanda, deputy special counsel for the Office of Special Counsel for Immigration-Related Unfair Employment Practices, part of the U.S. Department of Justice Civil Rights Division, is among the federal regulators speaking at the 2012 ASA Staffing Law Conference, April 17–18 in Washington, DC. Learn more at americanstaffing.net.


Regulating Employee Personal Conduct Through Employment Policies
Lexology (03/16/12) Cori Stirling

Many employers have created nonfraternization and social media policies to regulate various aspects of employees’ personal conduct. However, depending on the breadth of the written policies, these policies may have the unintended consequence of prohibiting conduct other than romantic relationships or derogatory comments, which may cause unwanted legal ramifications for the employer under the National Labor Relations Act. Also, implementation of nonfraternization policies and social media policies may result in unhappy employees, which in turn could lead to discrimination lawsuits and claims.

To avoid such potential legal difficulties, employers seeking to adopt these policies must ensure their policies are carefully crafted. Section 7 of the NLRA gives employees the right to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection. A work policy that may chill employees in the exercise of these rights could violate the NLRA, so having narrowly tailored nonfraternization and social media policies is critical. Even if the employer has perfectly crafted nonfraternization and social media policies, the policies may still result in liability under discrimination law if not enforced properly. The key to overcoming allegations of discrimination is to enforce the policy consistently, so that no employee can successfully allege being singled out for enforcement based upon a protected status.

ASA Members Only: Model Social Media Policy

The use—and potential abuse—of social media networking tools creates challenges for employers. While the law is in flux and definitive legal guideposts are evolving, employers can protect their legal rights and interests by using a personnel policy on social media. ASA members can download a free Model Social Media Policy at americanstaffing.net.



ASA for You


Staffing World® 2012: Liz Wiseman Joins Keynote Speaker Lineup

ASA has announced that Liz Wiseman, bestselling author and highly sought-after leadership strategist, has joined the exciting lineup of keynote speakers at Staffing World 2012, Oct. 9-11, in Las Vegas.


Wiseman is well-known for the groundbreaking strategies presented in her book, Multipliers—a top 20 leadership book on Amazon.com. Multipliers are leaders who amplify the capabilities of the people around them. When these leaders walk into a room, light bulbs turn on over people’s heads, ideas flow, and problems get solved.

Learn more about Wiseman
and her can’t-miss keynote address at Staffing World 2012.


ASA recently announced that Jim Collins, the highly acclaimed author and business strategist, will also headline Staffing World 2012. Collins invites staffing executives to be Great by Choice, the title of his newest bestseller. Learn more about what Collins has in store for staffing industry executives.

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Connect With Staffing Industry Peers on LinkedIn

Networking is one of your most essential tasks as a staffing professional—and the ASA group on LinkedIn can help you connect with industry peers. Group members can participate in online discussions, post job openings, respond to poll questions, and establish connections with other ASA members.

In addition, you can join one or more sector-specific subgroups for health care; industrial; professional; search and placement; and technical, IT, and scientific staffing. Learn more about ASA membership sections at americanstaffing.net.

The LinkedIn group enables you to network with other members of the staffing community when it’s convenient for you. Join today and get connected.
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March 21, 2012

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Headline News


On Assignment to Acquire Apex Systems
On Assignment Inc. News Release (03/20/12)

On Assignment Inc. reports it has signed a definitive agreement to acquire Apex Systems Inc., an information technology staffing and services firm. “Apex Systems becoming part of On Assignment further positions us in the most attractive and fastest-growing segments of the staffing industry,” says Peter T. Dameris, president and chief executive officer of On Assignment Inc. “Apex Systems’ IT staffing services are complementary to those offered by our existing technology division, Oxford Global Resources. Because the offerings do not compete, the acquisition will create value for our clients, shareholders, and employees by expanding our presence in the IT staffing market.”

Under the terms of the definitive agreement, On Assignment Inc. will acquire all of Apex Systems’ equity and retire all of its debt, for a total of $600 million. The purchase price is comprised of $383 million in cash, and newly issued stock valued at $217 million.

Medical Staffing Network Announces Sale of HomeCare Division to Epic Health Services
Reuters (03/20/12)

Medical Staffing Network Healthcare has completed the sale of its MSN HomeCare division to Epic Health Services of Dallas. This sale is part of the company’s strategic plan to focus on its core competencies that include services to acute and non-acute health care organizations. “The sale of MSN HomeCare enables our company to make further investments in the innovative work force management solutions that MSN has become known for,” says Medical Staffing Network chairman and chief executive officer Bob Bunker. “Our clients need a strategic partner that understands the dynamics of the workplace, has an understanding of labor management and work force optimization, and can provide real solutions that lower costs.”


Legal Watch


Law Targets Job Interviewers Who Ask to See Private Facebook Info
Chicago Tribune (03/21/12) Ashley Rueff

It is not unusual for employers to research job applicants’ social media use, but Illinois state Rep. La Shawn Ford (D-Chicago) thinks it is a violation of privacy for interviewers to ask applicants to log into their Facebook accounts during the interview. Ford has proposed legislation that would make it illegal for employers to request applicants to provide access to their Facebook accounts. He says the bill will protect people who are afraid to turn down an employer’s request due to concerns about termination or not being offered a job. The bill is expected to pass the House in the coming days and then move to the Senate.

Immigration Status Irrelevant to FLSA and State Wage Claims
Business Management Daily (03/18/12)

A federal court hearing a Fair Labor Standards Act case has ruled that an employee’s immigration status is not relevant and cannot be mentioned to the jury. An employee of BAE Cleaners who transported laundry sued the firm, claiming he had not been paid minimum wage and overtime under the FLSA and New York state labor laws. BAE Cleaners asked the court for permission to show that the employee was an illegal immigrant. The court said it could not because that status is irrelevant to whether the employer paid minimum wage and overtime.


Trends and Research


Employers Share Encouraging Perspectives and Tips for the Unemployed in New CareerBuilder Survey
MarketWatch (03/21/12)

A nationwide survey from ASA corporate partner CareerBuilder provides encouraging news and tips from employers to help unemployed workers land new jobs. The vast majority of employers—85%—reported they are more understanding of post-recession employment gaps. Some 94% said they wouldn’t think less of a candidate who took a position during the recession that was at a lower level than the one he or she previously held.

When asked what can help job seekers increase their marketability, employers stated they should pursue a variety of activities to build, expand, and strengthen their skill sets, such as take a temporary or contract assignment (79%), take a class (61%), or volunteer (60%).

Travelers Fill the Nursing Gap
The City Wire (03/20/12) Scarlet Sims

As the economy slowly recovers, the number of traveling nurses is rising, says Becky Kahn, senior vice president of client sales and services at AMN Healthcare. In 2008, there were 25,000 traveling nurses, but that number dropped dramatically to 4,500 in 2009, Kahn says. Currently there are between 9,000 and 10,000 traveling nurses. Some nurses are leaving the traveling nurse industry for permanent jobs, and hospitals are reducing the number of temporary nurses they use, Kahn says.

The U.S. Cities With the Fastest Growing Job Markets
The Atlantic Cities (03/19/21) Richard Florida

Austin, TX, and San Jose, CA, led U.S. cities in job growth in 2011, according to an analysis of data from the U.S. Bureau of Labor Statistics. Houston, Charlotte, NC, and Nashville, TN, round out the top five. The cities with the biggest gains are a mixture of knowledge-driven and creative regions (Austin, TX, San Jose, CA, and Raleigh, NC); regions with significant natural resources (Houston and Oklahoma City); transitioning industrial regions (Detroit and Pittsburgh); and the country’s leading center for popular music, Nashville, TN. Despite their reputations for resilience, the Washington metro region and the greater New York area ranked just 29th and 25th, respectively. The analysis covers the 51 U.S. metro areas with populations of at least one million people.

Some Go Extra Mile to Hire Growing Pool of Jobless Veterans
USA Today (03/20/12) Gregg Zoroya

The U.S. Bureau of Labor Statistics reports that 30% of male veterans between the ages of 18 and 24 were unemployed in 2011, versus 17.6% of their civilian peers, while 36% of female veterans in the same age group were out of work, versus 14.5% of civilian women. Experts say it is a challenge to train veterans in nonmilitary skills, but an Obama administration initiative that includes tax credits for employers, corporate hiring pledges, and job fairs is helping to lower unemployment rates among veterans. According to a January survey by the Society for Human Resource Management, companies hiring veterans rose to 64% from 53% in 2010.

However, 154,000 veterans of the Iraq and Afghanistan wars were unemployed in February, and the number is expected to rise as the military sheds troops now that the conflict in Afghanistan is coming to an end. Michael Aitkin, a vice president at SHRM, says companies are “getting buffeted by a lot of résumés from (nonveteran) folks that are unemployed, that have the skills and everything else.” He says aggressive outreach is necessary, given that 67% of employers say they are unaware of programs by the U.S. Department of Labor to link veterans with jobs and that 20% of those familiar with the programs do not use them. Experts say initiatives to link veterans with jobs may be most successful at the community level.


ASA for You


Friday Deadline: Book Your Staffing Law Conference Hotel Room

The hotel room block at the Westin City Center Hotel—the location for the 2012 ASA Staffing Law Conference, April 17–18, Washington, DC—has sold out. However, ASA has secured a block of rooms at the Hotel Helix, which is about a 10-minute walk from the Westin. The exact distance between the hotels is 0.3 miles.

Make reservations by calling the Hotel Helix at 800-706-1202 and asking for the 2012 ASA Staffing Law Conference group rate. The group room rate, available until March 23, is $259 (plus tax) per night for single or double occupancy (includes complimentary Internet access), and is subject to room availability.

After March 23, reservations may be accepted at the hotel’s prevailing rate, space permitting. Check-in starts at 3 p.m.; check-out is 12 noon. For more information about the 2012 ASA Staffing Law Conference, visit americanstaffing.net.
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Engage With Your Peers—“Like” ASA on Facebook

Have you checked out the ASA fan page on Facebook? With an average of more than 4,000 views per week, it’s an excellent resource for posting job openings, sharing news about your company, and networking with other staffing professionals and industry suppliers.

Visit the ASA fan page and click the “like” button to receive updates in your Facebook newsfeed about what ASA is doing for the staffing industry in your local area and around the country.
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March 20, 2012

Headline News

Legal Watch

Trends and Research

ASA for You

Headline News


Randstad Says North America May Become Firm’s Top Market
Bloomberg (03/20/12)

Randstad Holding NV says North America may become the company’s biggest market this year because of an acquisition and faster economic growth in the U.S. than in Europe. Randstad chief executive officer Ben Noteboom points out that hiring of professionals in the information-technology, engineering, and accounting industries has been increasing, enabling the company to build on its eight consecutive quarters of U.S. sales growth. “We are almost back at the previous peak,” Noteboom says. “There is no sign that the rise in penetration will stop” as firms seek to grow while remaining flexible enough to match sudden changes in the economy.

Randstad nearly doubled its presence in the U.S. after buying Fort Lauderdale, FL-based SFN Group Inc. for $771 million last year. U.S. companies are expanding work forces as sales rise and the threat of financial contagion from a European sovereign-debt default diminishes. “Structurally you see the biggest growth in the professional segment,” says Noteboom. “Our most important stake is the information technology market in the U.S.”

Economists Offer More Pessimistic View on Manufacturing in Upcoming Report
Washington Post (03/20/12) Peter Whoriskey

Federal advisers from the Clinton and Bush administrations attributed job losses in the manufacturing industry in the 2000s to increased productivity. U.S. Bureau of Labor Statistics figures indicate that productivity more than doubled from 1991 to 2011. However, some experts believe U.S. statistics showing productivity gains in manufacturing have been miscalculated and misrepresented, noting that price savings realized from outsourcing work to other countries may have been incorrectly included in calculations of U.S. output and productivity. Some experts also note that gains in output from 2000 to 2010 were registered only when computer and electronics products were included with the rest of U.S. manufacturing.

However, they point out that computer and electronics manufacturing has shifted overseas, and gains tied to innovation have been factored into productivity calculations. Rob Atkinson of the Information Technology and Innovation Foundation says the fact that U.S. manufacturers have lost their competitive advantage in the global marketplace has contributed to job losses in the industry and that government policy should be changed to bring millions of manufacturing jobs back to the U.S.


Legal Watch


Revised MA Antistaffing Bill Passes Out of Committee; Advocacy Efforts Continue
American Staffing Association (03/20/12) Stephen Dwyer

Late last week, a revised version of House Bill 1393 was passed out of the Massachusetts Joint Committee on Labor and Work Force Development. As originally drafted, HB 1393 would have prohibited staffing firms from charging permanent placement and conversion fees with respect to certain employees, potentially required in-state offices, and potentially prohibited staffing firms from sending candidate résumés to clients for purposes of generating client interest and job orders.

ASA and its affiliated chapter, the Massachusetts Staffing Association, met with the bill’s sponsor and proponents on several occasions, explaining how the original draft would harm the state’s staffing firms. As a result of these efforts, an entirely new bill was passed out of the committee.

Although the revised bill takes into account some of ASA’s and MSA’s concerns, it still would impose a significant administrative burden on law-abiding staffing firms. ASA and MSA will continue to meet with legislators to explain why the bill would harm staffing firms by imposing burdensome new requirements and detracting from their main mission of finding workers jobs.

Bill Would Protect Unemployed Job-Hunters
Riverside Press-Enterprise (California) (03/19/12) Jack Katzanek

California Assembly Bill 1450 would make employment status a protected class—along with age, race, and disability—that cannot be considered during the hiring process. If the bill passes and is signed into law, it would prohibit companies from turning away applicants because they are unemployed. The bill also would crack down on employment firms and online job boards that require candidates to be “currently employed.” New Jersey and the District of Columbia have adopted similar laws, and measures are pending in about a dozen other states.

Some who work in the human resources field say the law is not necessary. Sarah Cullins, president of staffing firm Finesse Personnel Associates, says she has never accepted a listing from a company that ruled out anyone who is currently unemployed. She says some companies could skew things the other way. A company wanting to hire someone immediately could favor someone who is unemployed and doesn’t have to give two weeks notice.

Is Your Employee Handbook Fully Protecting Your Business?
JDSupra (03/16/2012)

To protect themselves, companies must ensure their employee handbooks are updated regularly. Employee handbooks should include updated information on the Family and Medical Leave Act, including the FMLA notice poster or all the provisions found in the poster. Handbooks should also include a Fair Labor Standards Act safe harbor policy that asks employees to report all deductions they think are improper. Companies that monitor their employees’ e-mail or use of the Internet should include an employee authorization within the employee acknowledgement.

In Michigan, companies should have a Social Security privacy policy that outlines how the company obtains, uses, disseminates, and disposes of records that contain employee Social Security numbers; Michigan companies may also want to include an employee consent for a shortened statute of limitations.

Consider Having a Witness to Employee Meetings
Business Management Daily (03/18/12)

Having a witness during any employee meetings involving bias complaints can help protect the company during potential litigation.

In a recent case, Johnson v. Labor Force, Ronald Johnson, an African-American employee who worked for a temporary staffing firm, alleged that he was paid less than employees who were not African American. He asked for a meeting with the company owner and said he told the owner about his suspicions and informed the owner that he planned to file a complaint with the U.S. Equal Employment Opportunity Commission. Johnson was allegedly told that he did not need to return to work, so he sued.

The owner said a conversation about discrimination or equal employment opportunity complaints never took place. The court said a jury should determine who was telling the truth.

IRS Releases a YouTube Video Announcing Its Voluntary Classification Settlement Program to Employers
Lexology (03/19/12) Chris Pelkey

The U.S. Internal Revenue Service has introduced its Voluntary Classification Settlement Program with a YouTube video geared toward employers uncertain about whether workers should be designated as employees or contractors. At less than two minutes long, the video provides an overview of the VCSP and stresses that the program offers relief to employers who voluntarily reclassify workers as employees. Relief will be granted to employers who consistently classified workers as contractors or nonemployees, filed Forms 1099 for these workers, are not being audited by the IRS, and are not being audited by the U.S. Department of Labor or a state agency regarding worker classification. Employers that wish to apply for relief should access IRS Form 8952 on the agency’s Web site.


Trends and Research


Tatum Survey of Financial Executives Shows U.S. Recovery Back on Track
Sacramento Bee (03/19/12)

The professional services firm Tatum reports that its first quarter survey of financial executives reveals improving business conditions, a trend that has continued since November 2011. The percentage of financial executives reporting improvements climbed to 39% in March from 33% in February and 32% in January. “The theme we see this month is that the uncertainty around a broadening economic recovery seems to be dissipating,” says Sam Norwood, senior partner and editor of the Tatum Survey. The survey shows a slight jump in employment, with firms expecting to increase hiring.

2012′s College Graduates Have More Job Prospects, Recruiters Say
Los Angeles Times (03/20/12)

The job market for this year’s college graduates appears to be on the upswing as economic forecasts show seniors will have a better shot at employment than in past years and more businesses are recruiting at campus job fairs this spring. A recent survey by the National Association of Colleges and Employers found that businesses expect to hire 9.5% more college graduates this year than last, broadening a recovery since 2009 when such hiring plummeted 22%. “Hiring projections by industry indicate positive movement nearly across the board,” the report says, with the strongest demand for business, engineering, and computer science majors.

The Collegiate Employment Research Institute at Michigan State University, meanwhile, expects hiring of new college graduates to rise 7%. “Employers are now more optimistic about the college labor market than at any time since 2007,” its report states. Salaries of recent college graduates average about $36,000 a year, varying by industry and major, according to the report.

Accountemps Survey: One in Three Employers Lacks Orientation Program for New Hires
Accountemps News Release (03/20/12)

According to a recent survey from Accountemps, 34% of 500 human resource managers surveyed say their companies do not offer a formal orientation program to help prepare new staff. However, 67% of small firms (20 to 49 employees) have a formal orientation program, compared with 52% of large companies (1,000 or more employees). HR executives whose companies offer an orientation program say the greatest benefits of the program are that new employees: better understand the company’s values, guidelines, and expectations (35%); make positive contributions more quickly (20%); feel a connection with the company more quickly (19%); and are better prepared for long-term success with the company (17%).

MBA Hiring Continues to Grow
U.S. News & World Report (03/19/12) Laura McMullen

An increasing number of new graduates with masters degrees in business administration are landing jobs, compared with the past two years, according to an analysis of U.S. News & World Report data. Of the business schools providing job placement data for their 2011 graduates of full-time MBA programs, 78.8% of those graduates were hired within three months of graduation. By comparison, 75.7% of 2010 graduates and 70.8% of 2009 graduates landed a job within three months of graduation. These average percentage gains reflect a 4.1% growth in the MBA hiring market from 2010, and an 11.3% increase from 2009.

Many companies are expressing their interest in MBAs by approaching them at school. Approximately 70% of the 102 business programs surveyed for a February 2012 MBA Career Services Council report experienced increased on-campus recruiting in 2011. Specifically, those on-campus recruiters want MBAs to fill technology positions. More than 60% reported an increase in recruiting for full-time technology positions in 2011, up from the 37% gain technology job recruitment seen in 2010.

How to Get a Hot Job in Big Data
Network World (03/19/12) Dan Tynan

Big data has spawned new hybrid jobs that combine business knowledge and information technology tools. “Marketing and research people are becoming adept at pulling data from one system, translating it, and loading it into another system,” says Michael Dsupin, chief executive of the tech staffing firm Talener. “Everything these days is about harvesting the data out there.” Tracey Wilen-Daugenti, managing director of the Apollo Research Institute, says toolmaking, auto repair, health care, and other industries are being changed by technology, noting, “Every industry will require smart technology people with subject-matter expertise who can create new devices and think through all ways they might be used.” Some of these hybrid jobs involve data mining, data visualization, data analysis, data manipulation, data discovery, and handling data deluge. However, Dsupin does not think IT workers will be replaced.


ASA for You


ASA Announces Sections Policy Council Chairmen and Vice Chairmen

ASA offers sector-specific communities, called membership sections, to represent all sectors of the staffing industry and to promote peer networking and collaboration. These sections support the broad sectors of the industry: heath care; industrial; office–administrative; professional; search and placement; and technical, IT, and scientific.

It’s free for ASA members to join one or more sections. To join a section, visit americanstaffing.net. Membership sections are sponsored by ASA corporate partner RCS Services, a pioneer in risk management strategies specific to the staffing industry’s unique challenges.

Each section is led by a policy council, composed of ASA member volunteers, that advises the ASA board of directors on sector-specific issues, coordinates section activities, and designs programs and services to meet each sector’s unique business challenges.

Congratulations to the newly appointed policy council chairmen and vice chairmen.

Health care
Chairman: Marc Bowles, chief operating office, The Delta Companies, Dallas. Vice Chairman: Cynthia Kinnas, president, National Healthcare Division, Clinical One, soon to be Randstad Healthcare, Austin, TX

Industrial
Chairman: Harvey Homsey, vice president of franchise systems, Express Employment Professionals, Oklahoma City. Vice Chairman: Nick Stallard, CSP, chief financial officer, The Reserves Network Inc., Fairview Park, OH

Office–Administrative
Chairman: Karenjo Goodwin, chief executive officer, Exact Staff Inc., Woodland Hills, CA. Vice Chairman: Steve DeVoe, CSP, vice president, Tiger Personnel Services Inc., Silver Spring, MD

Professional
Chairman: John Thomas, CSP, CTS, regional developer, Nextaff, Overland Park, KS

Search and Placement
Chairman: Jeff Hindman, CPC, CAC, president and chief executive officer, The Hindman Group Inc., Chesterfield, MO

Technical, IT, and Scientific
Chairman: Dane Reese, CSP, president, Stark, Austin, TX. Vice Chairman: Dan Muhlfelder, president and chief executive officer, LJ Gonzer Associates, Cranford, NJ
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March 19, 2012

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Trends and Research

ASA for You

Headline News


Kforce to Sell Clinical Research Business
Kforce Inc. News Release (03/19/12)

Kforce Inc. has agreed to sell its clinical research business to inVentiv Health Inc. for $50 million in cash in an effort to focus on its core service offerings. The provider of professional staffing services expects to close the deal before the month ends and plans to use the proceeds to reduce debt. “As a result of an extensive review of our business and the changing landscape in the pharmaceutical industry, we have decided to sell our clinical research business,” says chairman and chief executive David Dunkel. Kforce predicts strong demand in its technology and finance and accounting businesses to continue and should replace the lost revenue from Kforce Clinical Research Inc. over the next 12 months.

ManpowerGroup Named One of World’s Most Ethical Companies
ManpowerGroup News Release (03/16/12)

ManpowerGroup has been named to the Ethisphere Institute’s 2012 World’s Most Ethical Companies list for its commitment to ethical leadership, compliance, corporate social responsibility, and business practices at large. This marks the second consecutive year that ManpowerGroup has been named to the list.


Legal Watch


Maryland Legislation Targets Employer Bias Against Unemployed
Baltimore Sun (03/18/12) Eileen Ambrose

Maryland has joined a growing number of states considering legislation to prevent employers from discriminating against the unemployed. Maryland employment experts say that most employers want only to hire the best candidates, regardless of how long they have been out of work, and new legislation is not needed. Just how many people have their unemployment status held against them is not known. The U.S. Equal Employment Opportunity Commission says jobless workers are not a protected class, so the agency does not track such complaints.

Maryland’s legislation would add “employment status” to the list of criteria—such as race, age, and religion—that employers cannot use to discriminate against workers. A hearing on the bill is scheduled for March 20. The Maryland Chamber of Commerce opposes the bill and says that while “[e]mployment status is not a factor in the hiring process…job skills are a legitimate factor to evaluate a candidate for employment.”

‘Illegal’ Job Interview Questions?
Greenberg Traurig LLP (03/14/12) Jay P. Lechner

Although it is not necessarily illegal for employers to ask job candidates interview questions touching upon race, sex, religion, marital status, and age, experts say they should avoid questions relating to protected class status or private matters not related to the job to prevent claims of discrimination. However, federal law prohibits employers from asking certain questions. For instance, they cannot ask about the existence, nature, or severity of a disability; family medical history or other genetic information; or former union membership or union preference.
Are You Well-Versed in the Pre-Employment Process?

The latest edition of Employment Law for Staffing Professionals, published by ASA, addresses the legalities of the pre-employment process, including pre-employment inquiries, employment references, reference checks, and more. Learn more about this must-have text for staffing professionals at americanstaffing.net

The Employment Authorization Question: Ask, But Ask Carefully
Foley & Lardner LLP (03/12/12) Anita M. Sorenson

To help ensure hiring of a legal work force, companies typically ask job applicants about work authorization early in the application process. Asking about work authorization on the employment application, instead of during an interview, ensures that the question is asked of each applicant in the same manner. The question must also be asked using the proper language and focus. If the question is not asked properly, companies may run into trouble with the U.S. Department of Justice’s Office of Special Counsel or with the U.S. Equal Employment Opportunity Commission.

Applicants should not be asked about their immigration, visa, or citizenship status. They also should not be asked to provide proof of work authorization during the application process. An appropriate question would be: Are you authorized to work lawfully in the U.S. for [insert company name]?
Delve Deeper at the ASA Staffing Law Conference

The 2012 ASA Staffing Law Conference, April 17–18, at the Westin City Center Hotel, Washington, DC, will deliver a packed program devoted specifically to the legal and regulatory issues facing staffing firms, including the employment authorization process. Register today at americanstaffing.net.

Health Complaint Filed Against Asbestos Removal Company
Baltimore Sun (03/16/12) Yvonne Wenger

The Public Justice Center has filed a complaint with the U.S. Occupational Safety and Health Administration against WMS Solutions LLC, a staffing firm that provides workers to contractors and subcontractors in the District of Columbia, Maryland, Pennsylvania, and Virginia, for failing to properly protect workers from asbestos. The complaint says workers are required to pay for medical exams, training, and protective equipment, all of which are required by OSHA to be provided by the employer. Workers who did not pay for these in advance saw the costs deducted from their paychecks.

The complaint, which names around 10 contractors and subcontractors, also states that workers at two sites had to wash and reuse respirator filters while other workers were given new filters twice per week. Moreover, WMS and the subcontractors are accused of not providing shower facilities for decontamination purposes and for misleading government inspectors with showers not connected to a water source. One employee of WMS says he was terminated after six years of employment for complaining about working conditions to OSHA. Legislation being considered by Maryland lawmakers would enhance protections for workers handling asbestos and hike penalties for companies violating environmental laws.


Trends and Research


Temporary Jobs a Timely Solution for Picky Employers and Job Hunters
Cherry Hill Courier Post (03/18/12)

A boomlet in hiring for temporary jobs is under way, as employers try out workers before they offer a permanent position. “Companies are using [temporary employees] as an interim solution because they want to make certain there’s enough work to justify the position—and that the employee is the perfect fit for the job,” says Wendy Brooks, founder of Brooks Personnel in Voorhees, NJ, where demand for medical office workers has doubled since December. Brooks says as many as 90% of the positions she is filling could turn into permanent jobs. Nationally, the conversion rate is about 50%, according to the American Staffing Association.

At Cherry Hill, NJ-based Accu Staffing Services, demand is strong for both short-term projects and open-ended assignments. “Companies are using us for project-based work that might last eight or nine weeks,” says Elaine Damm, vice president. “We are anticipating continued growth for the rest of the year,” says Damm. “We are feeling good about our ability to help people who are happy to have a job and are hoping to grow.”

J&J Staffing in Cherry Hill recently placed temporary-to-hire workers in clerical, sales, customer service, and tech positions. Ginny Schramm, the regional manager, is confident the matches will stick.
“Training is expensive,” she says. “So if a person works out, the company is likely to stay with that person.”

Factories Are Building Job Recovery in Area
Times Herald (Michigan) (03/17/12) Holly Setter

Thirteen manufacturers in St. Clair County, MI, part of the metro Detroit area, expanded their operations in 2011, adding more than 500 new jobs. Between 2009 and 2011, manufacturers added 12,800 new jobs in the Warren-Troy-Farmington Hills metro region, according to the U.S. Bureau of Labor Statistics. Manufacturing hiring may be even stronger than the statistics reflect, because some manufacturers do their hiring through temporary staffing companies.


ASA for You


Book Your Staffing Law Conference Hotel Room by Friday

The hotel room block at the Westin City Center Hotel—the location for the 2012 ASA Staffing Law Conference, April 17–18, Washington, DC—has sold out. However, ASA has secured a block of rooms at the Hotel Helix, which is about a 10-minute walk from the Westin. The exact distance between the hotels is 0.3 miles.

Make reservations by calling the Hotel Helix at 800-706-1202 and asking for the 2012 ASA Staffing Law Conference group rate. The group room rate, available until March 23, is $259 (plus tax) per night for single or double occupancy (includes complimentary Internet access), and is subject to room availability.

After March 23, reservations may be accepted at the hotel’s prevailing rate, space permitting. Check-in starts at 3 p.m.; check-out is 12 noon. For more information about the 2012 ASA Staffing Law Conference, visit americanstaffing.net.
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Get More Visibility for Your Company’s Success

ASA provides members with two ways to publicize company news and press releases about new hires, promotions, mergers and acquisitions, new lines of business, industry recognitions, and more—the Member News page on the ASA Web site and the Staffing Community section of Staffing Success magazine.

Send press releases to Melissa Beattie, ASA public relations coordinator, at staffingnews@americanstaffing.net.
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March 16, 2012

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Legal Watch

Trends and Research

ASA for You

Headline News


Appeals Court Denies Class Action Recruiter Overtime Case
American Staffing Association (03/16/12) Stephen Dwyer

In an unpublished opinion issued March 15, the U.S. Court of Appeals for the Ninth Circuit denied class certification in a case brought on behalf of Aerotek recruiters who claimed that they were misclassified as exempt administrative employees and thus entitled to overtime pay under California wage and hour law, Delodder, et al, v. Aerotek, Case 10-56755. The court upheld the district court’s ruling that the recruiters were not similarly situated and thus could not comprise a proper class for the class action.

The Court of Appeals affirmed the district court’s finding that the recruiters’ candidate sourcing techniques, interview styles, authority to recommend candidates, and relationship with supervisors all were relevant to whether the recruiters were exempt, and the variation in such activities among recruiters did not allow for class-wide adjudication.

Data Suggest Job-Market Gains Leveling Off
Wall Street Journal (03/16/12) Neil Shah

The number of people filing new applications for unemployment benefits declined last week, but declines in the four-week moving average have slowed, indicating that recent improvements in the job market may be losing momentum. Although employers are slowing the pace of layoffs, and the economy has added 1.2 million jobs in the past six months, some observers believe the job market won’t improve any further without more substantial economic growth.

E-Verify Job-Check System Is Underutilized, Agency Says
Washington Times (03/15/12) Stephen Dinan

Alejandro Mayorkas, director of U.S. Citizenship and Immigration Services, says the agency can handle additional requests through its E-Verify system, though it would need time to handle additional capacity if all states mandated use of the system. E-Verify mandates for all businesses have been passed in Arizona, South Carolina, Alabama, and Mississippi, and 13 states require its use by state agencies and government contractors. However, compliance levels vary in states with mandates. Mayorkas says the system ran more than 17 million checks during the 2011 fiscal year, and 102,942 individuals have used the system to check their status as of March 15. Legislation proposed by U.S. Rep. Lamar Smith (R-TX), chairman of the House Judiciary Committee, would require the use of E-Verify for all new hires nationwide, but the bill has stalled.


Legal Watch


U.S.: Unemployed Status—The New Protected Class
Sheppard Mullin Richter & Hampton LLP (03/14/12) James Hays; Rebecca Hirschklau

There appears to be a trend to add “unemployed” to the list of protected classifications under the myriad of federal and state fair employment practices acts. When unemployment rates are high, employers invariably become inundated with candidates for the limited openings that may become open and available, to the point where some employers have taken to disqualifying potential applicants by advertising that “the unemployed” need not apply. In light of this, Congress and several state legislative bodies have started to amend their antidiscrimination laws to add “unemployed status” as a protected class.

There are two bills currently pending in the U.S. Congress: HR 2501, the Fair Employment Opportunity Act of 2011 and S 1471, also known as the Fair Employment Opportunity Act of 2011. Both bills seek to bar private employers with 15 or more employees from discriminating against the unemployed when posting job openings and when considering an applicant for employment, unless current employment status was a bona fide job requirement.

Several states, meanwhile, are currently considering amendments to classify “unemployed status” as a protected class, thereby seeking to prohibit discrimination in hiring on the basis of an applicant’s unemployed status. New Jersey in 2011 became the first state to adopt a law concerning discrimination on the basis of an applicant’s employment status. Specifically, New Jersey now prohibits employers and employment agencies from advertising job vacancies that include “currently employed” as a job qualification; or indicate that applications will be accepted only from currently employed people; or that applications from the unemployed will not be accepted.
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Managing an OSHA Inspection: Answers to Five Frequently Asked Questions
OSHA Law Update (03/08/12) Eric Conn

When the U.S. Occupational Safety and Health Administration unexpectedly shows up to begin an inspection and the employer’s representative whom the employer prefers to manage the OSHA inspection is not present at the workplace, the employer can request that the agency’s officer return at a later time or wait a reasonable amount of time until the employer’s chosen inspection representative is available.

OSHA’s Field Operations Manual explains that the agency believes waiting approximately one hour is a reasonable amount of time to delay the start of an inspection to wait for the employer’s selected representative to become available. However, unless the agency’s representative has a warrant or other exigent circumstances exist—such as imminent danger in plain view—the employer can refuse to consent to the inspection until its chosen representative arrives, so OSHA may not proceed with the inspection without obtaining a warrant, which generally takes at least a couple of days.

Additionally, in the absence of a related special emphasis program, a warrant, or a hazard in plain view, OSHA cannot expand the scope of a complaint-based inspection beyond the location and hazard identified in the complaint without the employer’s consent. The employer should insist that the inspection be limited to only that location.

USERRA Protections Expanded Under VOW to Hire Heroes Act
HR.BLR.com (03/15/12)

The federal VOW to Hire Heroes Act calls on the U.S. Department of Labor to translate military skills and training to jobs in the civilian sector and simplify the process for veterans to secure necessary licenses and certifications. It also alters the language of the federal Uniformed Services Employment and Reemployment Act to make it illegal for employers to create hostile work environments based on an employee’s status as a service member, using language similar to Title VII of the Civil Rights Act of 1964.

Five Costly Health Care Compliance Slips
CFO (03/12) David McCann

In the past, the U.S. Department of Labor focused more on retirement plan compliance, but the agency is turning its attention to health benefit plans due to federal health care reform. Small companies without a human resources team may not maintain a required plan document that details claims procedures and eligibility provisions under the Employment Retirement Income Security Act. Many assume that insurance contracts satisfy ERISA standards, but DOL audits increasingly focus on both plan documents and insurance contracts, with companies not providing such documents within 30 days of an employee’s request facing fines up to $110 per day. Small firms also may neglect to retain plan-related documents for a sufficient time after the end of the plan year; ERISA mandates that such documents be retained for six years, but some states have longer statutes of limitations on claims against health plans.

Small firms also must comply with the Health Insurance Portability and Accountability Act of 1996, with the DOL undertaking audits of employers, who face penalties up to $2,500 per incident of noncompliance per standard. Under the federal health care reform law, companies with 250 or more employees must report all prior-year costs for health insurance paid by the employer and the employee on the employee’s Form W-2 beginning in 2013, with a $200 fine per form for incorrect information. Moreover, beginning Sept. 23, 2012, employers must provide a Summary of Benefits and Coverages document during open enrollment or face an excise tax of $100 per plan participant per day of noncompliance.


Trends and Research


U.S. Factories Help Job Recovery Endure in March
Associated Press (03/15/12) Christopher S. Rugaber

According to surveys by the Federal Reserve Bank of Philadelphia and the Federal Reserve Bank of New York, manufacturing in the two regions is growing at a healthy rate, and factories in the regions have been hiring more employees. An increase in automobile sales and rising demand for heavy equipment are keeping factories busy. However, the surveys show new orders and shipments have slowed, suggesting that future activity may be weaker.


ASA for You


Win the Best Clients and Candidates

The new 2012 “Why Staffing?” brochure will surely simplify your message about the benefits of working with a staffing firm. This colorful and affordable leave-behind piece communicates to potential clients and candidates that
  • Flexibility, training, and choice add up to very high job satisfaction for staffing employees.
  • Staffing firms provide qualified employees who fill a broad range of assignments.
  • Staffing firms fuel the economy with millions of workers who get the job done right, right now.
Available to ASA members at a significantly reduced price of $39 per 100—nearly 50% off the previous price—the brochure is easy to understand and a great way to complement your firm’s marketing efforts.

Read more about the new 2012 “Why Staffing?” brochure and see how a simple message can help expand your client base.
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March 15, 2012

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Headline News


Jobless Claims Decline
Wall Street Journal (03/15/12) Jeffrey Sparshott; Eric Morath

The number of Americans who filed requests for jobless benefits fell by 14,000 last week to 351,000, matching a four-year low, the U.S. Department of Labor reported today in the latest sign that the labor market is improving. Claims from two weeks ago were revised up to 365,000 from 362,000. Economists surveyed by Dow Jones Newswires had forecast that claims would fall by 5,000. The four-week moving average of claims, which smoothes out week-to-week volatility, was unchanged at 355,750.

U.S. Department of Labor Announces New Tools to Help States Reduce Improper Unemployment Insurance Payments
U.S. Department of Labor News Release (03/14/12)

The U.S. Department of Labor has announced the availability of new tools to help states reduce unemployment insurance payments to fraudsters. DOL is also publishing new materials highlighting what companies can do to avoid the negative tax implications of making improper payments. Taxpaying employers will eventually pay a higher UI rate based upon unnecessary or fraudulent charges. Eventually, the organization’s tax rate will be pushed into the next higher tax bracket because of the cumulative fraudulent/unnecessary unemployment claim charges. DOL is working with states and the work force system to disseminate these materials in public areas and to post them online.

Employer Costs for Employee Compensation
U.S. Bureau of Labor Statistics (03/14/12)

As of December 2011, private sector employers spent an average of $28.57 per hour worked on the cost of employee compensation, according to the U.S. Bureau of Labor Statistics. Wages and salaries averaged $20.14 per hour worked, while employee benefits averaged $8.43 per hour worked. Costs for workers’ compensation averaged $0.41 per hour worked. Costs for state unemployment insurance averaged $0.21 per hour worked, while costs for federal unemployment insurance averaged just $0.02 per hour worked.


Legal Watch


USCIS Affirms Staffing Firms’ Ability to Obtain H1-B Visas
American Staffing Association (03/15/12) Stephen Dwyer

On March 12, the U.S. Citizenship and Immigration Services, an agency of the U.S. Department of Homeland Security, issued guidance stating that staffing firms can sponsor H1-B workers if they can establish a valid employer relationship with the assigned worker, or “beneficiary.” The guidance specifies factors that could lead to a finding of employer status, including “whether the petitioner will pay the beneficiary’s salary; whether the petitioner will determine the beneficiary’s location and relocation assignments (i.e., where the beneficiary is to report to work); and whether the petitioner will perform supervisory duties such as conducting performance reviews, training, and counseling for the beneficiary.”

Responding to Social Security Number Mismatches: Threading the Needle Between Discrimination and Employment-Eligibility Liability
JDSupra (03/08/2012) Doug Hass

Companies should establish policies that outline how to respond to Social Security Number mismatches, because the penalties for ignoring or overreacting to SSN mismatches are severe. The policies should address how the company will respond to worker requests to change a SSN or legal name in payroll or personnel records. The policies also should address how the company will respond to requests or notifications by courts or government agencies regarding SSN mismatches. Additionally, the policies should address the company’s views on disciplining or letting go of workers for obtaining work using fraudulent paperwork.

If a company learns of a SSN mismatch, it should examine the worker’s Social Security card and compare it with the information in payroll and personnel records. If the information doesn’t match, the company should correct its records and submit corrected W-2, W-4, or other forms to the U.S. Social Security Administration, the U.S. Internal Revenue Service, and other appropriate agencies. If the company’s records do match the information on the worker’s card, the company can use the SSA’s Social Security Number Verification Service to verify the SSN. If the SSA confirms that the worker’s number matches, the company should tell the worker that someone may be using his or her SSN.

Companies should never require a worker to “reverify” their employment eligibility or take any other adverse action against a worker because of a SSN mismatch. To do so could subject the company to substantial liability under the antidiscrimination components of the Immigration and Nationality Act.

EEOC’s Lipnic Discusses Review of Agency Guidance on Criminal Checks
BNA Daily Report for Executives (03/14/12) Kevin P. McGowan

At a recent conference, Victoria Lipnic, commissioner of the U.S. Equal Employment Opportunity Commission, said the agency could soon update guidance on companies’ use of arrest and conviction records, noting that a draft would not be released for public comment but would be debated and voted on internally. “Blanket” hiring policies excluding individuals with past convictions could amount to discrimination against black and Hispanic applicant, she said.

Under existing EEOC guidance, employers must consider the nature and gravity of the offense, how much time has passed since the conviction, and the nature of the job, and if disparate impact is shown, Lipnic said, employers must show their hiring policy is related to the job and necessary to the business. She added that employers with blanket policies will be targeted by the EEOC for investigation and even litigation. The fact that employers now have access to more criminal background information via the Web is another reason why the guidance could be updated soon.
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Court Refuses to Enjoin NLRB Notice Posting Requirement Pending Appeal
Seyfarth Shaw (03/08/12) Joshua M. Henderson

U.S. District Judge Amy Berman Jackson recently upheld in part a rule by the U.S. National Labor Relations Board that requires employers to post a notice detailing employees’ rights under the National Labor Relations Act. The employers’ request to enjoin the NLRB from enforcing the rule until their appeal of the court order upholding the posting requirement is decided was denied by Jackson, who said they had not established that the posting requirement would cause them to suffer irreparable harm. Additionally, Jackson said it was “undoubtedly in the public interest” to enhance employees’ awareness of their rights.

New York Workers’ Compensation: No Employer Repayment for Concurrent-Job Benefits
DigitalJournal.com (03/14/12)

In the case Thomas v. Warren County DPW, the court enforced a 2007 amendment to New York’s workers’ compensation law. Under the wage replacement provision of the law, the employer in whose employment the worker sustained the injury must cover all medical costs and the worker’s average weekly wage, including additional wage amounts from other jobs held by the employee. Employers previously could obtain reimbursement for the higher average weekly wage tied to concurrent employment through a state Special Disability Fund, but the amendment eliminated this reimbursement. The court case confirms that employers are still responsible for the higher payment, and they or their insurers must absorb the cost.


Trends and Research


Health Care Industry Offers Jobs at Every Level
U.S. News & World Report (03/13/12) Christopher Gearon

The health care employment market is among the brightest anywhere. Even before the new health care reform law promised to add 32 million people to insurance rolls, the government’s employment prognosticators had predicted upward of three million new jobs between 2008 and 2018. “Even when the economy slowed down, people kept hiring physicians,” says Tommy Bohannon, a vice president at Merritt Hawkins, a Dallas-based physician recruiting firm. “I do not see it changing.”

Primary care doctors, nurse practitioners, and physician assistants are enjoying a seller’s market. These providers increasingly are seeing and treating more patients themselves and are taking on traditional physician duties such as writing prescriptions. Nurse practitioners cost an employer about half what internists do; their average pay now runs around $99,000. They also tend to be efficient at coordinating patient care to avoid mistakes and gaps in treatment. “The demand will be there for care coordination alone,” says Peter McMenamin, senior policy fellow with the American Nurses Association.

The Skills That Employers Want Most: What You Should Know
Wanted Analytics (03/14/12)

Wanted Technologies says the top 10 software skills being sought by employers are Microsoft Office, Microsoft PowerPoint, Structured Query Language, Microsoft Word, Oracle Java, Linux, UNIX, Customer Relationship Management, Microsoft Excel, and Microsoft SQL Server. The top 10 certifications demanded by employers are Certified Registered Nurse, Certification in Cardiopulmonary Resuscitation, Basic Life Support, Commercial Driver’s License, Continuing Education, Advanced Cardiac Life Support, Long Term Care, Certified Public Accountant, Licensed Practical Nurse, and Board Certified.


ASA for You


How Might the 2012 Presidential Election Affect Your Business? Find Out at 2012 ASA Staffing Law Conference

News outlets are packed with stories about the implications of the upcoming presidential election, but what does it all mean for the staffing industry and your business? Attend the 2012 ASA Staffing Law Conference—April 17–18 in Washington, DC—and hear from the nation’s pre-eminent authority on U.S. elections and political trends, Charlie Cook, editor and publisher of The Cook Political Report.

Attendees will get the inside scoop and preview the potential aftermath of this year’s election. See a short video of Cook, learn more about the 2012 ASA Staffing Law Conference, and register today. For agenda and hotel details, visit americanstaffing.net.
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March 14, 2012

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Headline News


Jobless Rates Decline in Key States
Wall Street Journal (03/14/12) Josh Mitchell

Joblessness remains high but has fallen in a handful of states expected to be closely contested in this November’s presidential election. The biggest job gains have come in the industrial Midwest—places such as Ohio and Michigan—where manufacturers have stepped up hiring in response to a surge in auto sales and other exports. The unemployment rate in Michigan fell more sharply than in any other state, to 9% in January, down nearly two percentage points from a year ago. The jobless rates in Colorado and Ohio fell by at least a percentage point each to 7.8% and 7.7%, respectively. In all, six of 10 states expected to be closely contested in the election have a jobless rate below the national average.

Nevada and North Carolina, two states hit hard by the housing bust, each saw their unemployment rate fall by more than a percentage point over the past year, but both states were still stuck in double digits in January, the most recent month for which data are available. U.S. Federal Reserve officials project U.S. unemployment will be between 8.2% and 8.5% by the end of the year.

Confidence at U.S. Small Companies Climbs to One-Year High
Business Week (03/13/12) Shobhana Chandra

The National Federation of Independent Business reports its optimism index increased to 94.3, the best reading since February 2011 and the sixth consecutive monthly gain, from 93.9 in January. The pickup in confidence was broad-based as more small companies also said they are increasing wages, anticipating better sales, and planning to grow inventories. The results are “good news for economy watchers,” says William Dunkelberg, the group’s chief economist. Small businesses are “mostly headed in the right direction, just at a glacial pace.” Measures on hiring and investment were a bit less promising. The small-business gauge of plans to add to payrolls dropped one point to net 4%, and those intending to make capital purchases over the next three to six months fell a point, the first decline in five months, to net 23%.


Legal Watch


New EEOC Task Force Aims to Help Small Businesses
Business Management Daily (03/13/12)

To help small-business owners without expert legal advice or experienced human resources professionals comply with federal antidiscrimination laws, the U.S. Equal Employment Opportunity Commission has created a small-business task force. The task force will determine how to broaden outreach to small businesses via technology, create technical assistance and training initiatives for small businesses, and develop approaches that specifically target firms with 50 or fewer employees and those owned by women or minorities. It also will enhance the EEOC’s Web site to improve small-business training.

Court: Worker Can Sue Supervisor as Individual in Medical Leave Claim
Mondaq (03/12/12) Peter L. Frattarelli

A ruling by the Third Circuit Court of Appeals for the Delaware Valley adds the federal Family and Medical Leave Act to the list of employment laws for which supervisors and managers can be held individually liable, meaning that they can face lawsuits from employees dissatisfied with how their FMLA requests have been handled. In Haybarger v. Lawrence County Adult Probation and Parole, an employee sued her employer and her supervisor for allegedly terminating her in retaliation for work that was missed for medical reasons. While the trial court dismissed the claim against her supervisor because she only has the ability to recommend termination, the appeals court broadened the FMLA definition of “employer” to include individuals that have supervisory authority over the employee making the complaint and that are wholly or partly responsible for the alleged violation. It remains to be seen whether the U.S. Supreme Court will make a decision on the matter, but in the meantime, experts stress that employers ensure supervisors and managers receive sufficient training in handling FMLA requests.


Trends and Research


One in Four Attorneys Plans to Hire in Second Quarter, Robert Half Legal Survey Finds
Robert Half International News Release (03/13/12)

More than one-quarter (26%) of the attorneys interviewed for the quarterly Robert Half Legal Hiring Index plan to hire full-time legal staff during the second quarter of 2012, while 4% anticipate staff reductions. The net 22% increase in hiring activity compares with a net hiring increase of 27% predicted in the first quarter of 2012. Some 57% of attorneys polled expect no change in staff levels in the next three months. More than half (59%) of the attorneys say it is challenging to find skilled legal professionals, up eight points from the previous quarter. Hiring activity is expected to take place predominantly at law firms, and bankruptcy or foreclosure, litigation, and general business or commercial law are the practice areas expected to see the most growth in the coming months.

Marketing and Advertising Executives Reveal Second-Quarter Hiring Plans: The Creative Group
Robert Half International News Release (03/13/12)

Some 13% of marketing and advertising executives plan to add full-time staff in the next three months, according to the Creative Group Hiring Index for Marketing and Advertising Professionals, and 3% predict reductions in staff. Most survey respondents, 80%, expect to make no changes to the size of their teams; this is up four points from the previous quarter’s forecast. The net 10% of executives planning to hire in the second quarter is up one point from the same time period in 2011 and down four points from the first-quarter 2012 forecast. Account services, Web design or production, and brand or product management are the specialties in greatest demand, according to survey respondents.

The Sky Is the Limit for Cloud Hiring
Wanted Analytics (03/13/12) Abby Lombardi

More than 5,000 cloud computing job ads were placed online in the U.S. last month, according to Wanted Analytics. Hiring demand for people with cloud skills has spiked dramatically, up 92% compared with February 2011 and 400% compared with February 2010. More than 3,400 of the ads placed last month were for tech talent, a 99% increase from a year ago. Other jobs that increasingly require cloud experience include marketing managers, sales managers, management analysts, and financial analysts.

Auto Parts Suppliers Hiring as Fast as They Can
NPR Online (03/14/12) Tracy Samilton

Automakers are creating thousands of new jobs amid a sales boom, and their suppliers are racing to keep up with the industry’s growth, adding tens of thousands of new jobs. In a dramatic reversal, many suppliers, after improving efficiency—through downsizing and buyouts—find themselves short-handed.

With the memory of the recent deep recession still so fresh, companies are still wary about hiring too freely. However, Sean McAlinden—an economist with the Center for Automotive Research—says there actually is a danger of having a shortage of parts and workers. He says the supplier industry will need 174,000 additional workers by 2015, and the pace of hiring right now appears to be too slow.

9 to 5—at 75
SmartMoney (03/13/12) Anne Kadet

For millions of workers, retirement has been delayed for years, with some saying they may never retire. The number of working people over age 65 reached an all-time low in 2001, when just 13% held a job. Now that rate is rebounding, and fast; last summer, it hit 18%, the highest level since 1962.

Some employers are beginning to appreciate the unique strengths—people skills, accrued wisdom, and a strong work ethic—that seniors can bring to the table. Principal Financial created a formal staffing program that brings retirees back for part-time temporary work while they continue to collect pensions. “They know the culture and they know their way around,” says human resource director Polly Heinen. The typical employee returns three to six months into retirement, taking short-term assignments doing clerical or administrative work for 10 to 20 hours a week. However, according to the Society for Human Resources Management, just 6% of U.S. companies offer formal “phased retirement” programs, down from 13% in 2006.

Executives Fear Leadership Shortage
IndustryWeek (03/14/12) Jonathan Katz

Employers have long fretted about a lack of applicants with the necessary skills to meet modern labor demands, but executives say they are now also having difficultly filling leadership roles within their organizations. Nearly a third of executives polled by Right Management, the talent and career management experts within the ManpowerGroup, cited a lack of high-potential leaders in their organization as their most pressing human resource challenge.

The sluggish economic climate has hampered recruiting efforts, says Michael Haid, senior vice president of talent management for Right Management. “Lean times make it hard for organizations seeking to recruit, retain, or develop future leaders,” he says. “And they’re keenly aware of the tough competitive environment they’re in and the need to hold onto and build leadership.”


ASA for You


Staffing Law Conference Update: Rooms Available at the Hotel Helix

Rooms at the Westin City Center Hotel, Washington, DC, have sold out for the 2012 ASA Staffing Law Conference, which takes place at this hotel April 17–18. However, ASA has secured a block of rooms at the Hotel Helix, which is about a 10-minute walk from the Westin. The exact distance between the hotels is 0.3 miles.

Make reservations by calling the Hotel Helix at 800-706-1202 and asking for the 2012 ASA Staffing Law Conference group rate. The group room rate, available until March 23, is $259 (plus tax) per night for single or double occupancy (includes complimentary Internet access), and is subject to room availability.

After March 23, reservations may be accepted at the hotel’s prevailing rate, space permitting. Check-in starts at 3 p.m.; check-out is 12 noon. For more information about the 2012 ASA Staffing Law Conference, visit americanstaffing.net.
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March 13, 2012

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Largest Companies Are Spending, Adding Jobs
USA Today (03/13/12) Matt Krantz

Many of the largest companies in the U.S. are putting some of their record piles of cash to work by boosting their hiring. Collectively the nation’s biggest companies added 4.2% more net jobs globally in 2011, based on S&P Capital IQ’s analysis of the 437 companies in the Standard & Poor’s 500 that reported employee statistics. Small companies are typically the biggest drivers of new jobs, but seeing larger firms increasing staff is encouraging. “It’s refreshing to see these job gains at these large companies,” says Jack Ablin of Harris Private Bank.

Employers in U.S. Plan to Add Jobs Next Quarter, Manpower Says
Bloomberg (03/13/12) Timothy R. Homan

Companies in the U.S. plan to increase hiring during the next three months, according to a survey by Manpower Inc. The company’s second-quarter employment index rose to 10%, up from 9% in the prior quarter on a seasonally adjusted basis. The share of survey respondents who plan to add employees from April through June climbed to 18%, the most since the third quarter of 2011, while the share of companies expecting to cut back on hiring declined to 6%, down from 9% in the previous period. “Positive hiring intentions tell us that employers are seeing increased demand for their products and services, and that is good news for the labor market,” Jonas Prising, president of the Americas for Manpower, said in a statement. “Although we are not out of the woods yet, our data shows that this hiring progression is increasingly solid.”

Barrett Business to Buy Sherertz Estate Stake in $59.7M Deal
Wall Street Journal Online (03/12/12) Tess Stynes

Barrett Business Services has agreed to purchase approximately 2.5 million shares from the estate of William W. Sherertz, the company’s late chief executive, in a deal valued at about $59.7 million. Under the terms of the deal, Barrett Business will also purchase 500,000 shares from Nancy Sherertz. Barrett Business president and chief executive Michael Elich says the company thinks the stock repurchase will be accretive to shareholders.


Legal Watch


New Hampshire House Considers Banning E-Verify Check Mandate
Associated Press (03/12/12)

The New Hampshire House of Representatives will vote this week on a bill that would prevent the state to mandate use of the federal E-Verify online database to check citizenship status. Bill supporters assert that the federal system—while being used by employers to verify legal residency—is being turned into a national ID card system that would threaten New Hampshire residents’ privacy. Employers can continue to use the federal system.

H-1B Amendments: The Times They Are A-Changin’
JDSupra (03/05/2012) Pam Prather

In the past, information technology companies that moved their H-1B eligible workers from one work location to another simply applied for a new Labor Condition Application. However, that is no longer adequate. Companies now must report any change or addition of work location to U.S. Citizenship and Immigration Services through an H-1B Amendment. Companies that fail to file an H-1B Amendment risk receiving a Notice of Intent to Revoke an already approved H-1B petition.

Feds Are Gearing Up for Veterans’ Return to the Work Force, and Employers Must Prepare as We Welcome Our Veterans Home
Constangy Brooks & Smith LLP (03/08/12)

As an estimated one million veterans return to the workplace, the U.S. Department of Labor and the U.S. Equal Employment Opportunity Commission are preparing for veteran-related litigation. Employers can expect a renewed focus on the Uniformed Services Employment and Reemployment Rights Act, the EEOC’s recently issued guidance for veterans on the Americans with Disabilities Act, and the DOL’s proposed regulations regarding “military-related” leave under the Family and Medical Leave Act.

Employers should begin preparing to facilitate successful transitions for veterans returning to the civilian work force. USERRA prohibits employers from discriminating against employees or applicants for employment on the basis of their military status or military obligations. It also protects the reemployment rights of individuals who leave their civilian jobs to serve in the uniformed services, including the U.S. Reserve forces and state National Guard units. Unlike many other federal statutes, USERRA applies to all employers, regardless of size.

DOL’s recently proposed regulations on the Family and Medical Leave Act were intended to interpret the National Defense Authorization Act of Fiscal Year 2010, which was enacted after the most recent version of the FMLA regulations became effective in January 2009. Employers need to be sure that they avoid discriminating against veterans, that they make all necessary reasonable accommodations, and that they comply with these laws. Violators are unlikely to get much sympathy from any quarter.


Trends and Research


Collaborating to Fill Skills Gaps
Human Resource Executive (03/09/12) Michael O’Brien

A report by the World Economic Forum and the Mercer consultancy calls talent mobility “much more than” just international assignments. All private and public entities must work together on talent-mobility initiatives to smooth the economic recovery, according to the study. “Talent mobility is an enabler for private companies, governments, academic institutions, and non-governmental organizations to close skills gaps and remedy talent shortages while also moving more people to employability and employment,” according to the report Talent Mobility Good Practices: Collaboration at the Core of Driving Economic Growth.

The Mercer/World Economic Forum report notes that “talent-mobility practices can effectively boost labor supply, stimulate labor demand, or better equilibrate supply and demand through changes in the cost or quantity of labor—all of which lead to growth.”

California Workers’ Compensation Costs Rose Slightly in 2011
Sacramento Bee (03/13/12) Dan Walters

California employers’ costs of providing workers’ compensation insurance increased slightly in 2011, but are still barely half of what they were before then-Gov. Arnold Schwarzenegger and the Legislature enacted a major overhaul of the system in 2004. The annual report of the Workers’ Compensation Insurance Rating Bureau was released on March 12, and found that the average cost of workers’ comp insurance increased from $2.32 per $100 of payroll in 2010 to $2.37 in 2011 as payouts to injured workers and their medical care providers also rose from $7.8 billion to $8.1 billion.

In 2003, coverage averaged $6.29 per $100 of payroll but after the reforms, which tightened eligibility for benefits, it dropped to as low as $2.16 in 2008 before beginning a slow rise. Payouts also dropped from $12.3 billion in 2002 to as low as $6.7 billion in 2005 before also beginning a slow rise.

West Valley Staffing Group: Majority of Silicon Valley Employers Expect Hiring Levels to Increase in Q2
MarketWatch (03/12/12)

West Valley Staffing Group expects staffing levels among Silicon Valley employers to rise or hold steady through the second quarter. The staffing firm’s Economic Survey of more than 350 hiring managers in such industries as electronics, semiconductors, medical, manufacturing, finance, and alternative energy reveals that 91% of hiring managers expect increased or steady hiring, while just 9% anticipate a decline in staffing needs. This marks the fourth consecutive quarter of employment growth. About 39% predict a jump in hiring needs, while 52% believe hiring needs will remain unchanged.


ASA for You


Don’t Miss Today’s ASAPro Webinar on Social Media Strategies

Staffing and recruiting professionals have to understand social media to stay competitive. Learn trends and ideas for your firm’s Web presence today, March 13, 3–4 p.m. Eastern time, during the ASAPro Webinar “Social Media Marketing Must-Do Trends—Stay Ahead of Your Competition.”

Jennifer Abernethy, author of The Complete Idiot’s Guide to Social Media Marketing, will teach you what needs to be on your Web site, what your firm should be doing on Facebook and LinkedIn, and more.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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ASA Staffing Index Offers Weekly Updates on Employment Trends

Need real-time data on temporary help employment? The ASA Staffing Index reports weekly changes in the number of people employed in temporary and contract work. The data will help your firm evaluate its performance against a national metric on both a weekly and long-term basis. All U.S. staffing firms are invited to participate in the ASA Staffing Index survey.

Every Tuesday, participants receive an e-mail with the results of the weekly survey, including sales group figures. These data, which are not available anywhere else, allow staffing firms to compare how their business is doing on a weekly basis relative to similarly sized firms in the industry. There are no fees for participating in the survey.

Don’t get stuck with outdated data—sign up to participate in the ASA Staffing Index and receive the most up-to-date information about the staffing industry. Check the latest data for the week ending March 4 at americanstaffing.net.

March 12, 2012

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Headline News


More U.S. Employers Using Temporary Labor to Vet New Hires
Reuters (03/09/12) Nick Zieminski

Companies that provide temporary labor are seeing more contract workers hired as permanent employees, in a sign job gains may be broadening as U.S. employers gain confidence in the recovery, staffing executives report. The staffing sector added 45,000 jobs in February, while temporary job gains in January and December were stronger than initially estimated, data from the U.S. Department of Labor showed. The percentage of temporary workers in the U.S. labor force, at 1.86%, marked the eighth straight monthly increase. Employment analysts expect that metric to pass its April 2000 peak above 2.0% as more employers embrace temporary labor in an uncertain economic climate.

Companies are using temporary employees to try out candidates for permanent jobs, says Jeff Joerres, chief executive of ManpowerGroup. “Our temporary to permanent conversions are very high,” Joerres says. Taking on temporary workers “also is a way of being agile and cautious, so if something happens in the Middle East and demand goes down precipitously, (they) have a way to adjust without affecting the permanent work force.” Small and mid-size companies are stepping up use of temporary workers as easier access to credit allows them to invest, notes Randstad employment analyst Joanie Ruge. “It is robust,” Ruge says. “Companies are going to look for more flexibility in their work force. They will expand and contract as their demand fluctuates.”

Joel Capperella, vice president of Yoh, points out that wages are still flat. A Yoh index of wages for skilled temporary workers found only a 1% gain over a year ago. “Wages aren’t really moving a whole lot,” Capperella says. “Clients of our services are in the driver’s seat. Things are good but you have to temper it.”

Piecing Together the Job-Picture Puzzle
Wall Street Journal (03/12/12) Jon Hilsenrath

The unemployment rate has fallen 0.7 percentage point from a year earlier, companies have expanded payrolls by more than 200,000 a month for the past three months, and the number of people filing claims for government unemployment benefits has fallen. Despite all this, the economy is barely growing, with many economists in the past few weeks having again reduced their estimates of growth. The economy by many estimates is on track to grow at an annual rate of less than 2% in the first three months of 2012.

Traditionally, economists have believed that when the economy grows faster than its long-run trend, the unemployment rate tends to fall by about half as much as the additional growth in percentage terms. So growth of 3.5% in a year—one percentage point above a long-run trend of 2.5%—would bring down the unemployment rate by a half percentage point in that year. However, that rule has been unreliable lately.

Christina Romer, President Barack Obama’s former chief economic adviser, has a theory for why the jobless rate rose more than predicted during the recession and why it has fallen more than the rule predicted since the recession: She believes that company managers were so shocked by the financial crisis in 2008 and 2009 that they fired workers more aggressively than they would in a conventional downturn. Over the past six months, she continues, as fear and uncertainty have dissipated, firms appear to have reversed course and gone back toward more normal staffing levels. Romer worries that these overshoots might soon run their course and that the traditional rule will reassert itself, potentially keeping the unemployment rate at high levels because the economy isn’t growing fast enough to justify more hiring.

More Younger Workers Finding Jobs
USA Today (03/12/12) Paul Davidson

Job prospects for younger workers are improving. In February, jobs for 25-to-34-year-olds rose by 116,000 to 30.5 million. The unemployment rate for these workers declined from 9% in January to 8.7% in February, the lowest level since January 2009, according to the U.S. Department of Labor. Meanwhile, the employment-to-population ratio for these workers rose from 74.5% to 74.7%.

Monster Employment Index U.S. Rises 11% on Annual Basis
MarketWatch (03/09/12)

Monster Worldwide Inc., parent company of ASA corporate partner Monster, reveals annual growth of 11% in its Employment Index U.S. in February. Positive annual growth trends were recorded in 19 of 20 industries, with transportation and warehousing up 36%, retail trade up 22%, wholesale trade up 22%, finance and insurance up 21%, and professional, scientific, and technical services up 17%; the biggest decline of 8% was recorded in public administration. Demand for workers increased in 22 of 23 occupational categories on a year-over-year basis, with transportation and material moving up 33%, legal up 23%, architecture and engineering up 23%, computer and mathematical up 19%, and management up 14%. Regionally, all 28 metro markets showed positive annual growth, ranging from 21% in Washington, DC, to 7% in Los Angeles.


Legal Watch


NLRB Weighs in on Social Media Activity in the Workplace
American Staffing Association (03/12/12) Anne Duffy

In recent months, there has been a flurry of opinions issued by the National Labor Relations Board that address employees’ right to discuss the terms and conditions of their employment through social media outlets.

The National Labor Relations Act applies to virtually all employees, regardless of whether they are represented by a union, and protects their right to seek mutual aid and support regarding the terms and conditions of their employment. Lafe Solomon, acting general counsel of the NLRB, has sued employers under the NLRA, alleging that their social media policies were overbroad and unlawfully restricted employees’ protected activities—such as using online tools to complain about or discuss their disciplinary actions or pay with other employees.

NLRB, in turn, has ruled that employer social media policies cannot be so sweeping as to prohibit or restrict social media activity protected under the NLRA.

In light of the recent NLRB ruling, the law firm Seyfarth Shaw LLP has provided an updated sample social media policy for ASA members. This policy is not intended as legal advice, and staffing firms should review and, as warranted, modify the policy upon the advice of their legal counsel to ensure compliance with the law.

E-Verify—It’s Yes, It’s No!
Lexology (03/06/12) John Fay

Some observers believe states that have passed legislation dealing with the E-Verify system are motivated by economic and migration factors and that those requiring its use have large foreign-born populations, but U.S. Census Bureau data show otherwise. Foreign-born residents make up 25% of California’s population, yet the state passed a law prohibiting a requirement that employers enroll in the E-Verify program. Illinois, where foreign-born residents account for 13.7% of the population, passed a law banning state agencies from enrolling in the program. Meanwhile, foreign-born residents make up about 6.36% of the population in the nine states that have passed laws requiring employers to enroll in E-Verify. Moreover, rather than institute such a mandate for economic or migration reasons, a bill up for consideration in New Hampshire that would prohibit the use of the E-Verify system cites federalist concerns.

H-1B Petitions April 1 Deadline
Lexology (03/08/12) Benjamin T. Kurten

Companies that want to sponsor a first-time H-1B employee may file their petitions to do so beginning April 1, and should file as close to that date as possible, before the H-1B “cap” is reached. Employees that are “cap exempt” include those who already have an H-1B visa and want to extend the duration of their stay in the U.S.; those who, in the past six years, have been counted toward the cap, unless they would be eligible for an additional six years of admission because they have been outside the U.S. for at least one year since they last had H-1B status; and those who are current H-1B visa holders who want to work simultaneously in a second H-1B job.


Trends and Research


States Hardest Hit by Housing Lead Jobs Recovery
Bloomberg (03/10/12) Steve Matthews

The states that were most hurt in the real estate collapse over the past five years—Arizona, California, Florida, and Nevada—added 222,100 jobs from August through December, accounting for 28% of the increase in U.S. employment in that period. Their outperformance may continue, say economists at Moody’s Analytics Inc. and IHS Global Insight.

Households in these states—where homes have lost on average half of their value since the 2006 peak in the housing bubble—are healing after cutting debt and bolstering their net worth, says Jan Hatzius, chief economist at Goldman Sachs Group Inc. Their stabilization may signal a broader improvement by U.S. consumers that supports a faster expansion in employment growth. Meanwhile, the broadening national recovery is helping local industries, including gambling in Nevada, tourism in Florida and Arizona, and social networking in California.

7 Reasons the Job Gains in 2012 Could Prove More Durable Than Last Year’s
Chicago Tribune (03/11/12) Paul Wiseman

Job gains since the start of the year look promising, and observers believe these gains are more sustainable this year than they were in 2011. They point out that companies will continue to hire more workers because they cannot increase output at current staffing levels. Also helping to sustain job gains are increased consumer spending, an ease of tensions in Congress that led to a payroll tax extension, signs of recovery in the housing market, an ease in concerns about Europe’s debt crisis, and a jump in lending to businesses by U.S. banks. Additionally, state and local governments appear to be adding jobs, with 10,000 jobs added at the state level so far this year and 2,000 jobs added by local governments last month.


ASA for You


Get Ahead With Social Media—ASAPro Webinar Tomorrow

Staffing and recruiting professionals have to understand social media to stay competitive. Learn trends and ideas for your firm’s Web presence tomorrow, March 13, 3–4 p.m. Eastern time, during the ASAPro Webinar “Social Media Marketing Must-Do Trends—Stay Ahead of Your Competition.”

Jennifer Abernethy, author of The Complete Idiot’s Guide to Social Media Marketing, will teach you what needs to be on your Web site, what your firm should be doing on Facebook and LinkedIn, and more.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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March 9, 2012

Headline News

Legal Watch

Trends and Research

ASA for You

Headline News


Payrolls in U.S. Climb 227,000; Jobless Rate Holds at 8.3%
Bloomberg (03/09/12) Alex Kowalski

The U.S. created 227,000 jobs in February and more people found work in the prior two months than previously reported, suggesting the economy’s recent momentum is likely to continue, according to data released today by the U.S. Department of Labor. The jobless rate held at 8.3%. Job growth over the past six months was the strongest since 2006. The median projection of economists in a Bloomberg News survey called for a 210,000 rise in February employment.

The jobless rate held steady even as the survey showed the labor force grew. Employment climbed by 428,000 in February, while the labor force rose 476,000. The participation rate, which indicates the share of working-age people in the labor force, rose to 63.9% from 63.7%. Private payrolls, which exclude government agencies, rose 233,000 in February after a revised gain of 285,000 the prior month. They were projected to climb by 225,000. Manufacturing payrolls increased by 31,000.
ASA: Staffing Employment Leads Job Growth in February

Seasonally adjusted employment data released by the U.S. Bureau of Labor Statistics indicated that staffing industry employment grew 1.9% from January to February. In a year-to-year comparison, temporary help employment for the month was 9.5% higher than in February 2011.

U.S. nonfarm payroll employment added 227,000 jobs in February, largely driven by increases in the private sector. Job growth was concentrated in professional and business services (82,000), with more than half of this increase coming from temporary help services (45,000); health care and social assistance (61,000); leisure and hospitality (44,000); manufacturing (31,000); and mining (7,000). Government employment showed little change over the month, falling slightly (-6,000 jobs). The overall unemployment rate held steady at 8.3% from January to February.

“Demand for temporary and contract workers was up significantly in February, an indicator that the economy is continuing to recover,” says Richard Wahlquist, president and chief executive officer of the American Staffing Association. “However, businesses continue to be very strategic about who to hire and when. With close to 13 million people unemployed, candidates need strong multifaceted job search strategies to help them stand out from the competition.”



AMN Healthcare Announces Full Year and Fourth Quarter 2011 Results
AMN Healthcare Services News Release (03/08/12)

AMN Healthcare Services Inc. has announced financial results for the full year and the fourth quarter of 2011. Net fourth-quarter income from continuing operations was $1.7 million, a 68% change from the third quarter of 2011. Net full-year income from continuing operations was $5.0 million. The results were at the higher end of management’s expectations, the company said.

The amounts were adjusted to reflect the impact of the discontinued operations associated with the disposal of the Home Healthcare Services segment in January 2012.

Analyst: Jobs Not Part of Manufacturing Recovery
Greenville News (South Carolina) (03/09/12) Jenny Munro

Manufacturing is generating jobs, but it needs fewer workers because the sector has increased productivity and certain jobs are no longer housed under the factory roof, according to Bruce Yandle, an economist at Clemson University. Manufacturing went through a tough period during the recent recession, notes Yandle, and traditionally, the sector closes its older plants and refurbishes others. That reduces the job numbers but tends to increase the productivity of the remaining employees.

Production in the U.S. is nearly back to prerecession levels, but there has been “hardly any recovery in manufacturing employment,” Yandle says. Another part of the structural change in the manufacturing sector is the move to outsource many of the nonmanufacturing elements of the process. Many plants now use temporary employees to fill some of their positions, saving the companies money and giving management more flexibility. U.S. staffing companies employed an average of 2.8 million temporary and contract workers per day in 2011, up 8% from 2010, according to data recently released by the American Staffing Association.


Legal Watch


Signing Client Contracts Can Be Costly
American Staffing Association (03/09/12) Ed Lenz

Staffing firm clients increasingly demand to be indemnified against a broad range of potential liabilities, and there is intense competitive pressure for staffing firms to agree to these demands. But doing so could result in a nasty surprise and significant liability.

A 2002 appellate court decision involving a temporary employee on a construction assignment, who caused an explosion while moving propane tanks, illustrates this danger. In defending against the lawsuit brought by the client, the staffing firm argued it was not liable because the temporary employee was under the client’s control at the time of the accident. The district court agreed, but the appeals court reversed the decision.

Staffing firms should not be expected to cover risks beyond those inherent in the staffing business. Staffing firms should not assume risks related to the client’s business, including liability for the client’s products and services. To help ASA members and their attorneys deal with these and other issues, ASA has developed suggested contract language that spells out the staffing firm’s and the client’s responsibilities.

Appeals Court Blocks Two More Parts of Alabama Immigration Law
Los Angeles Times (03/09/12)

A three-judge panel of the U.S. 11th Circuit Court of Appeals has blocked two sections of Alabama’s new immigration law. These sections would prevent courts from enforcing contracts involving illegal immigrants and would make it a felony for illegal immigrants to do business in the state. The panel said it would wait until the U.S. Supreme Court issued a ruling on the legality of Arizona’s immigration law before making a decision on the rest of Alabama’s law; oral arguments in the Arizona case will be heard by the Supreme Court April 25. Other sections of Alabama’s law were blocked by the Appeals Court panel in October.

2013 Budget Approves Special Funding for the DOL to ‘Detect and Deter’ the Misclassification of Workers as Independent Contractors
Lexology (02/27/12)

The fiscal year 2013 budget recently proposed by President Obama earmarks $14 million in funding for the U.S. Department of Labor to “detect and deter” companies from misclassifying employees as independent contractors, with $10 million to be given as grants to states to uncover instances of misclassification and recoup unpaid taxes and $4 million for the DOL to launch investigations into misclassification. The DOL’s 2013 budget devotes funding to hiring another 35 full-time investigators to handle misclassification, with the agency noting that it will maintain an “increased presence in those industries where the misclassification of employees as independent contractors is prevalent.” Therefore, companies would be wise to ensure right now that they are in compliance with rules governing independent contractors.

Minimum-Wage Hike Advances in New Jersey Senate
Philadelphia Inquirer (03/08/12) Joelle Farrell

New Jersey lawmakers are considering legislation that would hike the minimum wage by $1.25 to $8.50 per hour, with the Senate Labor Committee approving the measure on March 8. Proponents of the bill insist it will bolster the economy by giving working families money to purchase things they need, but critics worry that hitting businesses with a payroll increase right now will prompt them to lay off workers or move business to nearby states with lower minimum wages.


Trends and Research


Analysis: Quirks in Jobless Data Could Bite Obama
Reuters (03/08/12) Jason Lange

Some economists are asserting the government is mismeasuring seasonal shifts in the labor market, and suggest the jobless rate’s sharp winter drop is partly an illusion. The unemployment rate has fallen six-tenths of a percentage point from October’s level of 8.9%, an unusually rapid decline that has puzzled analysts who question whether the economy was growing fast enough to bring unemployment down so quickly.

Several Wall Street economists have crunched the unemployment numbers and now believe the deep 2007-09 recession left a lasting impact, distorting the outcome of the government’s adjustments for normal winter lulls in employment. If their research is correct, the unemployment rate could change little in the coming months, potentially hurting President Obama’s chances for re-election.

Even the U.S. Federal Reserve has been surprised by the sharp declines in the jobless rate, and economists at the central bank are studying what lies behind the recent apparent improvements in the labor market. The government analysts who produce the data defend their methods for adjusting the numbers, noting that some real shifts in seasonal employment may have taken hold during the recession, meaning the winter of 2008-09 may not have been an anomaly.

CFOs Expect to Boost Hiring
Wall Street Journal Online (03/07/12)

U.S. chief financial officers expect to increase hiring by slightly more than 2%, according to a quarterly survey by Duke University and CFO Magazine. The survey for the period ended March 1 showed an improvement from the 1.5% growth expected in the previous quarter, according to CFO Magazine’s Kate O’Sullivan. “It indicates that national unemployment should fall below 8% in 2012,” she says.

More than two thirds of U.S. chief financial officers are trying to fill open jobs, and almost 50% of them are having trouble filling some jobs. However, the U.S. CFO Optimism Index rose to 59 from 53 sequentially, marking a return to the index’s long-term average.


ASA for You


Get Ahead With Social Media—ASAPro Webinar Next Week

Staffing and recruiting professionals have to understand social media to stay competitive. Learn trends and ideas for your firm’s Web presence Tuesday, March 13, 3–4 p.m. Eastern time, during the ASAPro Webinar “Social Media Marketing Must-Do Trends—Stay Ahead of Your Competition.”

Jennifer Abernethy, author of The Complete Idiot’s Guide to Social Media Marketing, will teach you what needs to be on your Web site, what your firm should be doing on Facebook and LinkedIn, and more.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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March 8, 2012

Headline News

Legal Watch

Trends and Research

ASA for You

Headline News


Korn/Ferry International Announces Third Quarter Fiscal 2012 Results of Operations
Korn/Ferry International News Release (03/07/12)

Korn/Ferry International’s net income in the third-quarter of fiscal year 2012, which ended Jan. 31, fell to $11.7 million, down from $13.9 million a year ago. The company’s year-to-date net income rose to $42.3 million, up from $38.5 million in fiscal year 2011. “We had a solid seasonal quarter despite an uneven economic recovery,” said chief executive Gary Burnison. “As the recovery carries forward, we will continue to drive our differentiated strategy and solutions to help our clients not only attract, but engage, develop, and retain the talent needed to effectively execute their business strategy.”

U.S. Initial Jobless Claims Rose 8,000 to 362,000
Bloomberg (03/08/12) Alex Kowalski

Jobless claims in the U.S. rose to the highest level in five weeks, climbing by 8,000 to a seasonally adjusted 362,000, the U.S. Department of Labor reported today, a level consistent with an improving labor market. Economists forecast 352,000 claims, according to the median estimate in a Bloomberg News survey. The average over the past four weeks held close to a four-year low at 355,000.

Services Power Job Growth
Wall Street Journal (03/08/12) Neil Shah

U.S. companies added more workers to their payrolls in February than they did in January, according to Automatic Data Processing Inc., 170,000 of them in the services industry. A separate report by Intuit found that small companies with no more than 25 workers added 45,000 jobs in February, a 0.2% increase from January. In addition to the reports, there are other signs the economy is improving. The recovery in manufacturing and exports has spread to the services industry, and initial claims for unemployment insurance have fallen for four months.


Legal Watch


HR Issues Are a Hot Topic in State Legislatures
Business Management Daily (03/07/12)

The Society for Human Resource Management expects states to pass new employment laws while federal lawmakers concentrate on the upcoming election. Five states already have passed laws limiting the use of credit reports in hiring decisions, and more are expected to follow suit. Connecticut has passed legislation mandating paid sick leave, and other states likely will do the same. Meanwhile, more states could mandate the use of the E-Verify work authorization system, pass laws that prohibit discrimination against workers who are victims of domestic violence, and hold employers liable for instances of workplace bullying.

Court Confirms That Request for Additional Leave of an Unspecified Duration Is Not a Reasonable Accommodation Under the ADA
Franczek Radelet (03/06/2012) Mark Wilkinson

In the case Valdez v. McGill, a warehouse supervisor took leave under the federal Family and Medical Leave Act for a surgery related to colon cancer, then after returning from the surgery, he took intermittent FMLA leave over the course of a year due to recurring health issues. He then presented a note from his doctor saying he could not work for two weeks, as his health issues had not changed, and when those two weeks were up, he presented another letter from his doctor saying that he “may return to work” in another three weeks. Noting that he had used up the 12 weeks of FMLA leave available and citing poor work performance and excessive absences, he was terminated. The worker filed suit against his employer for failing to make a reasonable accommodation for his disability under the federal Americans With Disabilities Act.

However, the U.S. Equal Employment Opportunity Commission says employers are not obligated to accommodate requests for leave of an indefinite duration, and the court confirmed this position. Thus, employees must communicate regularly with their employers and provide firm dates for when they will return to work. Even so, employers should be mindful of the interactive process under the ADA in which they must communicate with employees regarding a need for leave and make individualized assessments of these requests.

Can You Refuse to Hire a Felon?
JDSupra (03/05/2012)

The U.S. Equal Employment Opportunity Commission states that employers may be in violation of Title VII of the Civil Rights Act of 1964 by refusing to hire people with criminal conviction records, unless a business necessity justifies such a practice. The EEOC says basing employment decisions on criminal conviction records puts African-Americans and Hispanics at a disadvantage because they are convicted at a rate that is disproportionately higher than their representation in the population. It defines “adverse impact discrimination” as a “substantially different rate of selection in hiring, promotion, or other employment decision which works to the disadvantage of members of a race, sex, or ethnic group.” To determine whether basing hiring decisions on criminal convictions is a business necessity, the EEOC says they must consider the nature and gravity of the offense, the time that has passed since the conviction or completion of the sentence, and the nature of the job.

Employers, especially in the hospitality industry, have been targeted by the EEOC’s systemic investigations as part of its E-RACE (Eradicating Racism and Colorism from Employment) initiative, which focuses on the use of arrest and conviction records in hiring practices. Experts say employers using criminal background checks should assess their current policies to ensure that the credit reporting agency they use complies with state laws and the federal Fair Credit Reporting Act and that their policy makes the aforementioned considerations set forth by the EEOC regarding the applicant’s offense. Additionally, they should avoid implementing blanket policies in which no one with a criminal record is hired.


Trends and Research


Accountant Hiring Expected to Remain Steady in Q2
Accounting Today (03/07/12)

A survey of chief financial officers by Robert Half International reports that staffing levels in accounting and finance are anticipated to stay fairly steady in the second quarter. The company’s Financial Hiring Index found that 91% of the 1,400 CFOs surveyed said they expect to maintain their current personnel levels in the second quarter, up from 69% at the beginning of the year. Additionally, 4% of the CFOs polled said they plan to add employees, while 5% predict staff decreases.

The CFOs surveyed are increasingly optimistic about their businesses, with 91% expressing confidence in their companies’ growth prospects in the second quarter, up four points from the first-quarter survey. “As economic signs continue to improve incrementally in the U.S., companies are hiring skilled accounting and finance professionals at a steady rate to meet demand,” says Robert Half International chairman and chief executive officer Max Messmer. “Staff reductions are trending downward as businesses seek to avoid weakening their bench strength at a time when growth opportunities are emerging.”

Paying to Play: Hiring Demand for Video Game Developers Increases
Seattle Post-Intelligencer (03/07/12)

Over the past 60 days, recruiters have posted more than 1,100 online job ads for video game programmers and developers, a 40% increase over the past year and a 65% increase since 2010, according to Wanted Analytics. The most commonly advertised job titles include video gaming user specialist, software engineer, Flash developer, Web developer, and video game tester. The technology jobs typically require gaming knowledge; other jobs that increasingly require this knowledge include marketing managers, merchandise displayers, market research analysts, graphic designers, and retail salespersons. Seattle, Los Angeles, New York, San Francisco, and San Jose, CA, were the cities with the highest volume of job listings for video game developers, but the best markets for recruiting people with these skills are Madison, WI; Denver; and Salt Lake City.

IT to Power Future Job Creation
Network World (03/07/12) Kenneth Corbin

A new report from the Technology CEO Council concludes that the companies that best leverage information technology will account for most new jobs and propel the next wave of economic growth. New technologies such as remotely managed computing infrastructure options and the increasing number of cloud applications have lowered the entry barriers for innovative young startups to compete in a global economy, according to the study from TCC. “It is a lot easier to start a business today than ever before,” says Dell chief executive Michael Dell, chairman of TCC.

The study found that small services firms with fewer than 100 workers that rely heavily on IT to run their business employed between 5% and 6% of all U.S. workers from 2002 to 2008, but accounted for 34% of the new jobs created over that time. The study’s authors noted that the few businesses that emerge as high-growth, transformative companies will leverage technology throughout their business operations, lowering the cost of back-office operations such as payroll and procurement, driving into new markets, and making better-informed, data-driven decisions.


ASA for You


Find Out Where the Best Candidates Come From—ASAPro Webinar Today

Measuring the return on investment of recruitment advertising should be a major priority for every staffing firm owner and recruiting professional. Get tips for maximizing the ROI of your online recruitment advertising this afternoon, 3–4 p.m. Eastern time, in the ASAPro Webinar “Source-Tracking: Maximize Your Online Recruitment Budget.”

Shane O’Donnell, senior director of sales at Indeed.com, will help you identify inefficiencies in your company’s candidate source-tracking processes and make measurable improvements to your recruitment strategies.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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Get Ahead With Social Media—ASAPro Webinar Next Week

Staffing and recruiting professionals have to understand social media to stay competitive. Learn trends and ideas for your firm’s Web presence Tuesday, March 13, 3–4 p.m. Eastern time, during the ASAPro Webinar “Social Media Marketing Must-Do Trends—Stay Ahead of Your Competition.”

Jennifer Abernethy, author of The Complete Idiot’s Guide to Social Media Marketing, will teach you what needs to be on your Web site, what your firm should be doing on Facebook and LinkedIn, and more.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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March 7, 2012


Headline News
ADP: Private Sector Adds 216,000 Jobs
U.S. 4th-Quarter Productivity Revised Up to 0.9%
Jobless Rate Falling Faster Than Many Predicted

Legal Watch
NY, NJ, CT Politicians Seek Minimum Wage Increase
Pre I-9 Audit Planning: Prepare for the Worst and Hope for the Best (Part 2)

Trends and Research
Young Adults See Their Pay Decline
More Workers Saying: ‘I Quit!’
Study: Salaries Poised to Rise for Workers With Mobile, Cloud, UI Skills
CIOs Struggle to Find IT Talent

ASA for You
Find Out Where the Best Candidates Come From—ASAPro Webinar Tomorrow
ASA Welcomes Section Policy Council Members

Headline News


ADP: Private Sector Adds 216,000 Jobs
Wall Street Journal (03/07/12) Kathleen Madigan

Private-sector payrolls increased by 216,000 in February, led by the service-providing sector and small businesses, according to the ADP employment report released today. The gain was close to expectations of 215,000 put forth by economists surveyed by Dow Jones Newswires. The January gain was revised to 173,000 from a prior estimate of 170,000. As has been the case in recent months, the gain was fueled by small-business hiring.

The latest ADP report showed large businesses with 500 employees or more added 20,000 employees to their staffs in January, while medium-size businesses added 88,000 workers and small businesses that employ fewer than 50 workers hired 108,000 new workers. Service-sector jobs increased by 170,000 last month, and factory jobs increased by 21,000.

U.S. 4th-Quarter Productivity Revised Up to 0.9%
MarketWatch (03/07/12)

U.S. productivity was a bit higher in the fourth quarter of 2011 than originally stated, but the cost of producing goods and services climbed due to a significant rise in hourly wages, according to revised data from the U.S. Department of Labor. DOL reported that productivity rose 0.9% in the final three months of 2011, up from an earlier prediction of 0.7%. Meanwhile, hours worked rose 2.7%, a bit less than the initial 2.9% prediction. However, inflation-adjusted hourly wages rose 2.8%, sharply higher compared with the initial estimate of 1.9%. As a result, unit-labor costs also rose 2.8% instead of 1.2% as previously estimated.

Jobless Rate Falling Faster Than Many Predicted
USA Today (03/07/12) Tim Mullaney

The jobless rate is declining more quickly than some economists had predicted. The economy created an average of 223,000 new jobs a month in December and January, and a Bloomberg survey predicts 204,000 jobs were created in February. However, the additional jobs are not solely responsible for the falling jobless rate.

According to some economists, the real reason the jobless rate has declined so rapidly is that not as many people as expected are looking for work. There are 1.1 million discouraged unemployed workers—those who haven’t sought a job in the past month—and many of them are expected to stay out of the job market even once the economy recovers. In addition, more Baby Boomers are retiring.


Legal Watch


NY, NJ, CT Politicians Seek Minimum Wage Increase
Associated Press (03/06/12)

Legislative leaders in New York, New Jersey, and Connecticut are calling for the minimum wage in their states to be raised to about $10 an hour. Currently, Connecticut’s minimum wage is $8.25 an hour; the federal minimum wage rate is $7.25 an hour.

Pre I-9 Audit Planning: Prepare for the Worst and Hope for the Best (Part 2)
The I-9 and E-Verify Blog (02/23/12) Valentine Brown

In a continuation of yesterday’s article on Form I-9 audits, this article provides additional worst-case scenarios relating to internal I-9 audits and suggestions to help employers mitigate their potential ill effects.

There is no way to prevent an employee or former employee from filing a complaint with the U.S. Department of Justice Office of Special Counsel for Immigration Related Discrimination, but a company might prevent the complaint from turning into a full-blown investigation by following citizenship status and national origin polices that are applied evenly to all employees. An emergency preparedness plan should be put into place that includes clear lines of communication, preapproved responses, and the authority to quickly carry them out when necessary.

When doing an in-house audit, it is often prudent to let employees know ahead of time. Advise them of the importance of the project and that they may be asked to provide additional information or documentation. This will cut down on employee uncertainty while emphasizing the need for timely and full cooperation.
Read part 1 of this article in the March 6 issue of Staffing Today.


Trends and Research


Young Adults See Their Pay Decline
Wall Street Journal (03/07/12) James R. Hagerty

New college graduates comprise the demographic most likely to take the brunt of the downward pressure on wages in the current economic climate, according to the Economic Policy Institute. The average inflation-adjusted hourly wage for male college graduates in their 20s declined 11% over the past 10 years to $21.68 in 2011, while the average wage for female college graduates the same age has fallen 7.6% to $18.80. In contrast, the average inflation-adjusted hourly wage for production and nonsupervisory workers of all ages and education levels has risen 3% over the past 10 years, government figures indicate.

More Workers Saying: ‘I Quit!’
MSNBC (03/06/12) Eve Tahmincioglu

New studies showing that more employees are quitting their jobs indicate an increase in worker confidence. A survey of recruiters by MRINetwork shows a jump in job openings resulting from resignations to 28% in January from 21% in July 2011. Meanwhile, a February report from the U.S. Bureau of Labor Statistics reveals that 1.9 million people quit their jobs, indicating more confidence about job availability among employees even though the figure trails the 2.8 million resignations reported in December 2007.

Nancy Halverson, senior vice president of operations at MRINetwork, adds that hiring has picked up a bit as well. “Organizations are adding and upgrading talent, and all of a sudden, employees are willing to say, ‘I’ll put my name out there,’” she says. Of the 163 recruiters polled by MRINetwork, 56% said candidates are driving the job market. As for how they identify candidates, 11% said active candidates were in the database already, 16% looked to the competition, 18% used referrals, and 25% searched third-party databases. The most desired qualities in candidates are a history of generating revenue, previous employment with a brand name company, and advanced degrees.

Study: Salaries Poised to Rise for Workers With Mobile, Cloud, UI Skills
Computerworld (03/06/12) Fred O’Connor

Salaries for people who have backgrounds in five popular technologies are expected to increase this year, according to a study from information technology staffing firm Bluewolf. Workers with experience in mobile application and software development, cloud computing, data analysis, and user interface design will benefit, Bluewolf says. The IT job market is already competitive, and it is expected to become even more so as current workers retire. The study covered a variety of IT positions, including executives, software developers, and system administrators.

CIOs Struggle to Find IT Talent
Network World (03/06/12) Ann Bednarz

Robert Half International polled 4,000 U.S. executives—including chief information officers, chief financial officers, senior human resource managers, lawyers, and advertising and marketing executives—to determine their hiring plans for the second quarter of 2012. More CIOs say recruiting is a challenge than do their counterparts in other professions, with 65% saying it’s a challenge to find talent. Candidates with a solid knowledge of cloud computing and software as a service are highly sought, Robert Half reports. Across all professions, 61% of the executives report recruiting challenges.

Among all respondents, 89% expect to maintain headcount in the second quarter, 5% expect to increase staff levels, and 3% expect to decrease staff. The strongest hiring activity is expected in the legal and marketing fields, with a net 22% of lawyers and 10% of marketing executives planning to increase headcount. Robert Half pollsters also asked executives about their companies’ prospects for growth in the second quarter, and 91% say they are confident about growth.


ASA for You


Find Out Where the Best Candidates Come From—ASAPro Webinar Tomorrow

Measuring the return on investment of recruitment advertising should be a major priority for every staffing firm owner and recruiting professional. Get tips for maximizing the ROI of your online recruitment advertising tomorrow, March 8, 3–4 p.m. Eastern time, in the ASAPro Webinar “Source-Tracking: Maximize Your Online Recruitment Budget.”

Shane O’Donnell, senior director of sales at Indeed.com, will help you identify inefficiencies in your company’s candidate source-tracking processes and make measurable improvements to your recruitment strategies.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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ASA Welcomes Section Policy Council Members

To represent all sectors of the staffing industry and to promote peer networking and collaboration, ASA offers sector-specific communities called membership sections. These sections support six broad areas of the industry: heath care; industrial; office–administrative; professional; search and placement; and technical, information technology, and scientific. It’s free for ASA members to join one or more sections.

Each section is led by a policy council composed of ASA member volunteers who advise the ASA board of directors on sector-specific issues, coordinate the section’s activities, and design programs and services to meet the unique business challenges faced by these sectors of the staffing industry. ASA congratulations all the newly appointed policy council members.

You can see the complete list of policy council leaders and sign up to join a section at americanstaffing.net/sections.

Membership sections are sponsored by RCS Services, an ASA corporate partner and pioneer in risk management strategies specific to the unique challenges of the staffing industry.
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March 6, 2012

ASA: Staffing Employment Grew 8% in 2011


U.S. staffing companies employed an average of 2.8 million temporary and contract workers per day in 2011, up 8% from 2010, according to data released today by the American Staffing Association. In 2011, U.S. staffing firms hired 12.9 million temporary and contract employees over the course of the year.

“Although the staffing industry employs only two of every 100 nonfarm workers on any given day, it has provided income for millions of American families—about one of every 10 nonfarm workers held a job with a staffing company at some point in 2011,” says Richard Wahlquist, American Staffing Association president and chief executive officer.

In the fourth quarter of 2011, average daily staffing employment totaled 2.98 million workers, up 5.2% from the third quarter and up 5.8% from the fourth quarter of 2010. The October through December period marked eight consecutive quarters of year-to-year staffing job growth since the recession ended in 2009.

“As the economy continued to slowly improve, staffing and recruiting companies played an important role in putting America back to work in 2011, helping close to 13 million people find temporary, contract, or permanent jobs,” says Wahlquist. “Through career counseling, training, employment, and job placement, staffing and recruiting companies add value to peoples’ lives across every sector and occupation.”

Temporary and contract sales totaled $98.3 billion in 2011, 12.4% higher than in 2010. Fourth quarter sales totaled $26.2 billion, up 10.0% from the same quarter last year.
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Headline News


Cross Country Healthcare Reports Fourth Quarter and Year-End 2011 Results
Business Wire (03/05/2012)

Cross Country Healthcare Inc. reported revenue March 5 of $124.7 million in the fourth quarter ended Dec. 31, 2011, a 10% increase from revenue of $113.7 million in the prior year quarter and a 5% decrease from the third quarter of 2011. Net income was $0.5 million, compared with revenue of $113.7 million and a net loss of $6.0 million in the same quarter of the prior year that included $6.6 million of after-tax trademark impairment charges related to the acquisition of Medical Doctor Associates.

For the year ended Dec. 31, 2011, the company generated revenue of $504.0 million and net income of $4.1 million after the aforementioned tax-related matters. This compares with revenue of $468.6 million in the prior year that included the aforementioned impairment charges.

Randstad Employee Confidence Index Rises for Second Consecutive Month
Sacramento Bee (03/05/12)

The Randstad Employee Confidence Index climbed 1.5 points to 53.9 in February, marking its highest level since May 2011. The survey of 1,453 employed adults reveals that 30% believe the economy is improving, and 19% of respondents think more jobs are available. Another 43% of those polled are confident about finding employment, 59% are confident in the future of their employers, and 69% do not expect to lose their jobs. Around 34% of respondents think they probably will seek a new job during the next 12 months, but 53% do not plan to look for a new job during that time.

February Service Sector Highest Level in a Year: ISM Survey
Reuters (03/05/12)

Companies in the U.S. service sector, which employs most of the nation’s work force, expanded at a faster pace in February, according to the Institute for Supply Management. The research firm’s nonmanufacturing index rose to 57.3% from 56.8% in January. The reading topped economists’ forecasts of 56.1%, according to a Reuters survey. New orders climbed to 61.2% from 59.4%. Yet the employment index slipped to 55.7% from 57.4% and the price index, which measures inflation, jumped to 68.4% from 63.5% in the prior month. Any reading over 50% indicates expansion instead of contraction.


Legal Watch


Governor Signs New Mexico Unemployment Insurance Bill
Las Cruces Sun-News (New Mexico) (03/05/12) Milan Simonich

New Mexico Gov. Susana Martinez signed legislation into law on March 5 that reduces taxes on unemployment insurance in 2012. Although the measure will boost unemployment insurance premiums next year, rates are still less than those set forth by a prior bill. The bill’s sponsors, Sen. John Arthur Smith (D-Deming) and Stuart Ingle (R-Portales), say the aim was to ensure the unemployment fund remained solvent and reduce expenses for businesses. According to Martinez, “As New Mexico job creators are working to get our economy back on track and hire new workers, it’s vital that we provide this temporary tax relief to ensure that we’re not putting barriers in the way of job creation.”

Firm That Fired Woman Who’d Just Given Birth Fined $148,000
Associated Press (03/03/12)

The U.S. Equal Employment Opportunity Commission, which had accused HCS Medical Staffing Inc. of firing a woman who had just given birth, says the company will have to pay $148,000. The EEOC says HCS’s owner made offensive comments about the woman’s pregnancy, and then fired her because she needed to take maternity leave. A federal judge ordered HCS’s owner to pay the woman back pay plus interest, compensatory damages, and punitive damages. According to prosecutors, the owner accused the employee of using prenatal appointments as an excuse for time off, and he fired her through the mail while she was in the hospital.

Is Using Credit Reports to Screen Job Applicants Fair?
USA Today (03/05/12) Trevor Hughes

State lawmakers are increasingly concerned about employers using credit reports to screen job applicants, especially since the economic downturn has caused many people to lose their jobs and fall behind in their bills. The practice has been limited by new laws in California, Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington, and Colorado may soon follow suit. Sen. Morgan Carroll (D-Aurora), the sponsor of the Colorado bill, says there is no connection between work ethic and creditworthiness, and she is concerned that such a practice will create a permanently unemployable class of people.

Chris Ball, operations manager of the staffing firm Express Employment Professionals in Jackson, MS, says hiring managers do not want workers who have filed bankruptcy within the last five years. However, he says some are more willing to hire people with bad credit as temporary employees to allow them to prove their skills and trustworthiness.

Enforcing Non-Solicitation Agreements
Lexology (02/21/12) Roy A. Ginsburg

Suppose a company in a highly competitive industry requires its sales staff to sign a noncompete or nonsolicitation agreement. Several of the company’s sales staff have joined another company that is not a competitor. However, this other company seems to be recruiting the first company’s staff. Does the first company have a legitimate claim based on the restrictions in the nonsolicitation agreement? The short answer is “maybe.”

First, a legitimate claim would be based on several factors, such as state law. Some states would side with the employer, but California and North Dakota, for example, likely would not. Second, the governing state law may be determined by the contract, provided there is a choice-of-law component in the agreement. But even if there is, some courts may decide against enforcing it.

Third, the language of the agreement itself may be a factor. Some courts take the language of nonsolicitation agreements quite literally, so prohibitions on “soliciting,” “inducing,” “convincing,” or “persuading” may be interpreted differently. Other nonsolicitation agreements may be so broadly worded that the company seemingly is prohibiting any interaction, even social interaction between two people who may have known each other for a long time. This kind of language may provide the former employee with an opportunity to contest the validity of the agreement.

Pre I-9 Audit Planning: Prepare for the Worst and Hope for the Best (Part 1)
The I-9 and E-Verify Blog (02/21/12) Valentine Brown

Regardless of the reason for a voluntary audit, employers need to think through the entire process and all of the attendant results and consequences before conducting a voluntary Form I-9 audit. Employers must determine ahead of time what policies and procedures will be followed to respond to the results of the audit. The first task is to identify the worst possible outcomes of an audit based upon the employer’s individual company characteristics, preferably by working with experienced audit counsel who can assist in developing the worst case scenario list considered in the article.

The most common worst-case scenario that employers encounter during an audit is when Forms I-9 contain errors and the human resource department has to request assistance and possibly documents from employees to make corrections. Another troubling result of an internal audit is when fraudulent I-9 documents are identified. The final worst-case scenario cited in the article is when undocumented employees are identified during the I-9 audit.


Trends and Research


Yoh Index Finds Disconnect Between Recent Unemployment Statistics and Real-World Demand for Skilled Temporary Workers
Yoh News Release (03/05/12)

Recent reported employment gains should be great news for the American economy. But findings by the Yoh Index, which measures real-wage growth among skilled temporary workers, shows continued stagnation in salary rates among the most dynamic sector of the U.S. employment market. The Yoh Index barely budged for the fourth quarter of 2011, ending the year at 114.26, just a 1.15% increase over the same quarter for 2010.

Much of the disconnect between reports of employment gains and the real-world demand for skilled temporary workers has to do with the employment participation rate, which now stands at 63.7%, the lowest since the early 1980s. An artificially low employment participation rate decreases the unemployment rate by reducing the total number of people looking for work. A recent survey, commissioned by Yoh and conducted by Amplitude Research, found that systemic uncertainty over the economy and structural inefficiencies within the hiring process continue to suppress U.S. employment, and threaten to do so well into the future. In the survey of companies with revenues greater than $750 million and work forces over 1,500 employees, 61% of respondents reported that economic uncertainty represents the greatest obstacle to increased hiring this year.

Recruiter Sees Hires Picking Up
Washington Business Journal (03/05/12) Jeff Clabaugh

More companies are hiring and the professional job market has swung to the job seeker’s favor, according to Philadelphia-based recruiting firm MRINetwork. The company’s survey of its recruiters found 56% of them characterize today’s talent market as candidate-driven, while 44% say it’s still an employer-driven market. Among those same recruiters, 49% say newly created positions are the primary reason for the job openings they are seeing.

“As companies gain more confidence in the economy, many are ready to add headcount and back fill positions that have been left unfilled,” says Rob Romaine, president of MRINetwork. “We are seeing clients reinvesting in their teams, expanding their operations, and striving to gain market share as business improves.” Recruiters report nearly half of their placements took fewer than five weeks from the first interview until an offer was made.

Tech Hiring Helping Spur Revival in Jobs Market
San Francisco Chronicle (03/06/12) Rich Miller

Technology-industry hiring is on an upswing, with vacancies outnumbering job seekers by more than three to one, according to the Conference Board. Online help-wanted advertisements for people with computer and math skills rose 2.1% in February from a month earlier to the second- highest level since the Conference Board began tracking the data seven years ago. Job openings for people skilled in mobile applications are up more than 100%.

A study released in January by economists Robert Shapiro and Kevin Hassett found that more than 1.5 million jobs were created from April 2007 to June 2011 by the shift from 2G to 3G Internet and wireless network technologies. Going forward, the U.S. will need about 490,000 people with “deep analytical skills” and another 1.5 million data-savvy managers, according to a report by McKinsey Global Institute.


ASA for You


Find Out Where the Best Candidates Come From—ASAPro Webinar Thursday

Measuring the return on investment of recruitment advertising should be a major priority for every staffing firm owner and recruiting professional. Get tips for maximizing the ROI of your online recruitment advertising this Thursday, March 8, 3–4 p.m. Eastern time, in the ASAPro Webinar “Source-Tracking: Maximize Your Online Recruitment Budget.”

Shane O’Donnell, senior director of sales at Indeed.com, will help you identify inefficiencies in your company’s candidate source-tracking processes and make measurable improvements to your recruitment strategies.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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Protect Your Business—Go to the 2012 ASA Staffing Law Conference

If your staffing firm has insufficient insurance coverage, you might not find out until a substantial loss occurs. Protect your business by attending the 2012 ASA Staffing Law Conference, April 17–18 in Washington DC—one of the sessions features insurance experts who will provide a primer on types of coverage common to the staffing industry and explain how to avoid common traps.

This annual conference is the only program devoted to legal and regulatory issues facing staffing firms. To register, visit americanstaffing.net.
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March 5, 2012

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Headline News


Temporary Jobs Are Not the New Norm
U.S. News & World Report (02/28/12) Heidi Shierholz

Heidi Shierholz, economist at the Economic Policy Institute, says the economic recovery has boosted growth in the temporary help services industry, but she says temporary jobs account for fewer jobs now than before the recession. The industry has added more than 650,000 jobs since the recession ended in mid-2009, but it eliminated more than 900,000 jobs from mid-2006 to mid-2009.

Employment in temporary help agencies began to decrease in the fall of 2006, more than a year before overall employment began to decline. However, the industry began to see growth in September 2009, several months before the overall labor market began adding jobs. Temporary help services jobs accounted for 1.9% of all jobs in 2006, falling to 1.3% by the summer of 2009. The figure currently stands at 1.8%, which is lower than its prerecession level.

Hiring, Key to U.S. Recovery, on Upswing
MarketWatch (03/04/12) Jeffry Bartash

The U.S. likely added 208,000 jobs in February, and the unemployment rate stayed put at 8.3%, predict economists surveyed by MarketWatch ahead of the March 9 jobs report. However, economists believe businesses are not hiring at a rapid pace and that fewer firings are fueling payroll growth. Gus Faucher, senior economist at PNC Financial Services, says to lower the U.S. employment rate to prerecession levels, 250,000 to 300,000 jobs per month must be created, and he does not think that is possible. Meanwhile, Neil Dutta, economist at Bank of America Merrill Lynch, says flat consumer spending, among other things, means a faster pace of hiring cannot be sustained. Other economists believe the economy may have gotten a boost from the unseasonably warm winter, and such growth will not continue into spring.

Small Business Hiring Edges Up in Feb: Poll
Reuters (03/02/12) Jason Lange

Hiring at small U.S. companies rose in February as the number of companies laying off employees declined to its lowest level since 2007. However, companies scaled back plans to hire employees, according to a poll by the National Federation of Independent Business. NFIB reported on March 2 that companies in its survey added an average 0.04 jobs in February. The reading was flat in January. Overall, 9% of companies added jobs in February.

Fed Takes a Break to Weigh Outlook
Wall Street Journal (03/05/12) Jon Hilsenrath

U.S. Federal Reserve officials will consider the perplexing economic outlook when they meet next week, but they are not expected to take any new action to boost economic growth. In his January news conference, Federal Reserve chairman Ben Bernanke appeared to favor a new bond-buying program to help drive down long-term interest rates even more, but he also indicated that more purchases would hinge on the nation’s economic performance. The odds of more bond buying would become more remote if growth or inflation pick up.


Legal Watch


Federal Court Rules That NLRB Can Require Employers to Post ‘NLRA Rights’ Notice
Seyfarth Shaw (03/02/12) John Toner; Joshua Ditelberg

In National Association of Manufacturers v. National Labor Relations Board, et al., U.S. District Judge Amy Berman Jackson on March 2 granted in part and denied in part the plaintiff association’s request to block the NLRB’s new notice posting rule, which is to go into effect April 30, 2012. Judge Jackson ruled that the NLRB did not exceed its authority under the National Labor Relations Act by requiring all employers subject to the act to post a notice advising employees of their rights under the act. However, she also ruled that the portion of the rule which would deem an employer’s failure to post the NLRB notice to be an unfair labor practice, and the provision that delays the statute of limitations in the case of unfair labor practice charges where the employer failed to post the notice, do in fact violate the act and are therefore invalid as a matter of law.

The District Court’s decision may be appealed, and there is a separate lawsuit challenging the notice posting rule pending in the U.S. District Court for South Carolina.

Top 10 Trends in Background Checks for 2012: EEOC Scrutiny of Criminal Background Checks Heads List
HR.BLR.com (03/05/12) Lester Rosen

Background checking company Employment Screening Resources says the biggest trend in employment screening background checks for 2012 is that the U.S. Equal Employment Opportunity Commission is paying closer attention to the use of criminal background checks by employers for employment purposes. Also making ESR’s list of the Top 10 Trends in Background Checks for 2012 is that states increasingly are regulating the use of credit reports by employers, with California, Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington passing laws that limit the use of credit reports for employment purposes.

Additionally, the report indicates that social media background screening checks of job applicants are gaining popularity and generating some controversy, and employers are automating background screening to boost efficiency, though such a move also increases risks. Other trends listed in the report include an increase in diploma mills providing fake degrees and credentials, more lawsuits being filed against employers for alleged violations of the federal Fair Credit Reporting Act, and employers having to navigate more complex federal and state rules for the use of the E-Verify system.


Trends and Research


Why Recent Job Gains May Stick This Time
Wall Street Journal (03/05/12) Conor Dougherty; Rob Barry

While the U.S. job market has improved of late, observers note strong job growth early in 2011 was followed by a slowing in the spring and summer. However, job growth this year has spread to more of the nation’s largest metro areas—divisions bigger than cities that can include several counties. According to data from the government and Moody’s Analytics, 82 of the 100 largest metro areas saw year-over-year job growth through December, up from 71 metro areas with an increase through December 2010.

Meanwhile, initial claims for unemployment benefits, which are a reliable indicator of hiring, have declined for four months. Forecasters expect the overall trend to continue. IHS Global Insight projects job growth will increase in all 50 states this year, with a handful reaching prerecession employment levels by the end of 2012 or 2013. They note the recovery has led to a ramp-up in business investment, higher consumer spending, and, finally, more hiring.

‘Hiring Panic’ May Lift U.S. Confidence Soon: Chart of the Day
Bloomberg (03/02/12) David Wilson

Edward Yardeni, president of the New York-based investment advisory firm Yardeni Research Inc., says a hiring panic may erupt within the next few months. He says jobless claims indicate the ease of finding employment, and he cites statistics from the U.S. Department of Labor indicating that the four-week average of unemployment benefits applications has tumbled to a four-year low of 354,000. Meanwhile, the percentage of respondents in the Conference Board’s consumer-confidence surveys stating that jobs are hard to get dropped to 38.7% in February, after hovering in the 42% to 49% range over the past three years. Yardeni says, “More companies are having trouble finding the employees they need.”


ASA for You


Find Out Where the Best Candidates Come From—ASAPro Webinar Thursday

Measuring the return on investment of recruitment advertising should be a major priority for every staffing firm owner and recruiting professional. Get tips for maximizing the ROI of your online recruitment advertising this Thursday, March 8, 3–4 p.m. Eastern time, in the ASAPro Webinar “Source-Tracking: Maximize Your Online Recruitment Budget.”

Shane O’Donnell, senior director of sales at Indeed.com, will help you identify inefficiencies in your company’s candidate source-tracking processes and make measurable improvements to your recruitment strategies.

ASAPro Webinars are free for ASA members ($295 for nonmembers) and qualify for continuing education hours toward ASA certification renewal. Register online at americanstaffing.net.
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Get Tips on Earning Government Contracts

Selling to the federal government can provide significant revenues for your staffing firm—but the process can be a bit overwhelming. ASA offers free resources that can help you position your company for government contracting opportunities.

A series of Webinars available on ASAPro—the ASA online professional development center—teaches the basics of selling to the government, shows you how to get started, and explains how you can pursue opportunities. Participants can take an online quiz after each course and earn an electronic certification of completion to present when bidding for government contracts.

In addition, ASA members that have successfully sold to the federal government created reference tools to help their peers explore and consider doing business with the government. These resources, including information on federal procurement, federal acquisition regulation, market research, and more, are available at americanstaffing.net.
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March 2, 2012

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Headline News


On Call Counsel Acquires Selected Assets of Peak Counsel
On Call Counsel News Release (02/28/12)

On Call Counsel, a division of the TemPositions Group of Cos. with operations in California, New York, New Jersey, and Connecticut, has acquired selected assets of Peak Counsel, a New York-based attorney and paralegal staffing business. As part of the agreement, Arnold Schlanger and Leyda Mata, two key executives from Peak Counsel, will establish an On Call Counsel New York City office. Schlanger will serve as managing director and Mata as managing director of recruitment. The transaction will now provide On Call Counsel with a significant presence in the New York legal market in addition to their existing strength in California.

Economy Picks Up Pace, but Risks Remain
Wall Street Journal (03/02/12) Ben Casselman; Jon Hilsenrath

A host of reports Thursday indicate that the U.S. economy is finally showing signs of moving onto firmer ground. However the economy is far from robust. Consumer spending has been mixed, and the manufacturing sector, though on the rebound, is not booming, according to a survey of manufacturing purchasing managers by the Institute for Supply Management.

One big worry at the U.S. Federal Reserve is that household incomes have not been growing fast enough to support much additional spending. The U.S. Commerce Department said on March 1 that wage and salary income in January was 5% higher than a year earlier, the fourth straight month of gains of 5% or higher, which hasn’t happened since late 2007. But after adjusting for inflation, income and spending have seen only modest gains in recent months.

The latest signs of growth are met with caution by those who recall that in 2010 and 2011, the recovery seemed to start the year with momentum but petered out by summer. Still, many business executives say they are prepared to move ahead with hiring and investment growth plans despite their lingering uncertainties about the outlook.

Drop in Unemployment Claims Points to Strong February Hiring, but Spending, Incomes Still Weak
Associated Press (03/01/12) Christopher Rugaber; Derek Kravitz

Steady declines in applications for unemployment aid are pointing to another strong month of hiring in February. Meanwhile, manufacturing growth slowed and construction spending dipped, while auto and retail sales both climbed. The mixed data suggest the recovery will stay bumpy. Jennifer Lee, an economist at BMO Capital Market, notes: “Stronger job creation is not generating more spending.”

Many economists predict employers added more than 200,000 net jobs in February for the third straight month. “The labor market appears to have strengthened markedly over the last few months,” says Paul Ashworth, senior U.S. economist for Capital Economics. Ashworth predicts the economy added 220,000 net jobs last month and the unemployment rate fell for the sixth straight month, to 8.2%.


Legal Watch


ASA Supports Efforts to Promote Employers’ Use of Criminal Background Checks
American Staffing Association (03/02/12) Anne Duffy

ASA is participating in a coalition of business groups concerned that the U.S. Equal Employment Opportunity Commission’s plans to revise its longstanding guidance on criminal history checks will make it more difficult for employers to review the criminal histories of job applicants and volunteers. Earlier this month, the coalition sent a letter to federal lawmakers emphasizing the positive aspects of criminal background checks and the concerns over the potential guidance that may inhibit employers’ use of these checks. Part of the concern is that the EEOC does not intend to publish its revisions for public comment prior to issuance, which would preclude meaningful consideration of employers’ concerns.

EEOC has a longstanding position that an employer’s policy of excluding an individual from employment because the individual has a criminal conviction record is unlawful under Title VII of the Civil Rights Act of 1964, unless the policy is justified by a business necessity. Advocates for limiting employers’ use of background checks contend that the use of background checks adversely affects members of minority populations that are statistically more likely to have criminal histories.
Hear EEOC Regulators at the ASA Staffing Law Conference

Victoria A. Lipnic, commissioner of the U.S. Equal Employment Opportunity Commission, will be a panelist at the ASA Staffing Law Conference along with representatives from the U.S. Department of Justice and the U.S. Department of Labor. It’s April 17-18 in Washington, DC. Visit americanstaffing.net for more information.

Nation’s Toughest Immigration Law Stays Put for Now
NPR Online (03/01/12) Corey Dade

A panel of three judges from an Atlanta federal appeals court decided March 1 to delay action on immigration lawsuits in Georgia and Alabama. Parts of Alabama’s immigration law will stay in effect until the U.S. Supreme Court rules on a similar Arizona immigration law. The Supreme Court will hear oral arguments about the constitutionality of Arizona’s enforcement policy on April 25. Six states have passed legislation similar to Alabama’s, and the U.S. Justice Department has sued to block them all on the grounds the enforcement role is solely the purview of the federal government.


Trends and Research


Executives Project Second-Quarter Hiring Plans
Robert Half International News Release (02/29/12)

A new Robert Half survey indicates that hiring in professional fields is likely to continue increasing in the second quarter, but at a slower pace than forecast for the first quarter. A net 2% of executives interviewed for the Robert Half Professional Employment Report plan to add full-time staff in the second three months of 2012, down from 10% last quarter. The biggest trend in the survey is the increase in the number of respondents who anticipate no change in hiring activity: 89%, compared with 78% last quarter.

The survey also finds that 5% of executives anticipate bringing in additional staff, and 3% expect personnel reductions. The legal field is again expected to see the strongest hiring activity, with a net 22% of lawyers planning to increase staff levels. Meanwhile, 61% of those surveyed reported recruiting challenges.

Where the Jobs Are, the Training May Not Be
New York Times (03/02/12) Catherine Rampell

The Center for the Study of Education Policy at Illinois State University reports a 7.6% decrease in state appropriations for colleges in 2011-12, marking the biggest yearly decline in 50 years. Although technical, engineering, and health care expertise is in high demand, the drop in state funding has prompted many public colleges, having already hiked tuition rates, to cut training in these fields. For instance, engineering and computer science departments have been eliminated in public colleges in Nebraska, Nevada, South Dakota, Colorado, Michigan, Florida, and Texas. Other colleges have stopped expanding, which forces students to stay in school longer to take required classes, boosts their debt, and increases dropout rates.


ASA for You


ASA Helps You Share Positive Facts About the Industry

An exposé recounting a reporter’s experience working as a temporary associate in a Mississippi fulfillment warehouse appeared as the cover story for the March–April issue of Mother Jones, a magazine specializing in investigative, political, and social justice reporting. The author—who was hired through a staffing company—was sharply critical of the working conditions she faced during the assignment. The story has been cited in blogs published on Web sites of Forbes, the Chicago Tribune, and Business Insider.

The vast majority of news stories about the industry are—unlike this article—favorable, largely because of the ASA “Hard Facts, Human Faces” campaign to deliver five key industry messages: jobs, flexibility, bridge, choice, and training. Research shows that these messages nearly double positive public opinions about the staffing industry. Become a talent advocate by familiarizing yourself with these Staffing Facts and answers to Staffing FAQs from ASA.
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Win Over Potential Clients and Candidates

The newly updated “Why Staffing?” brochure is now available to ASA members at a significantly reduced price of $39 per 100. That’s nearly 50% off the previous price.

This straightforward brochure easily complements your efforts to explain to potential clients and candidates that
  • Flexibility, training, and choice add up to very high job satisfaction for staffing employees.
  • Staffing firms provide qualified employees who fill a broad range of assignments.
  • Staffing firms fuel the economy with millions of workers who get the job done right, right now.
The brochure is not only easy to understand, it also is a great way to enhance your firm’s marketing efforts—so your business can win the best clients and candidates to grow in 2012.

Read more about the new 2012 “Why Staffing?” brochure and see how a simple message can really expand your client base.
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March 1, 2012

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Headline News


Adecco Reports Double-Digit Revenue Growth for 2011
Adecco Group News Release (03/01/12)

Adecco Group today announced results for the full year and the fourth quarter of 2011. Revenues in 2011 were EUR 20.5 billion, an increase of 10% on an organic basis. Permanent placement revenues amounted to EUR 344 million, an increase of 20% in constant currency (+18% organically). Gross profit for 2011 was EUR 3.6 billion, an increase of 7% compared with 2010.

Adecco revenues in the fourth quarter were EUR 5.2 billion, an increase of 4% in EUR and in constant currency compared with Q4 2010. Organically, revenues were up 3%. Permanent placement revenues increased 7% in constant currency to EUR 82 million. Gross profit for the fourth quarter amounted to EUR 930 million, flat compared with the fourth quarter of 2010.

In North America in the fourth quarter of 2011, Adecco generated revenues of EUR 917 million, flat in constant currency compared with Q4 2010. General staffing revenues grew by 2% in constant currency. Professional staffing revenues declined by 2% year-on-year, held back by the information technology staffing business and with the engineering and technical segment comparing against very strong growth in the fourth quarter of 2010.

Fed’s Beige Book Largely Reiterates Bernanke’s Comments
Wall Street Journal Online (02/29/12) Steven Russolillo

The U.S. Federal Reserve’s beige book report largely reiterates what Fed chairman Ben Bernanke said in his Feb. 29 testimony before Congress. The economy is growing at a “modest to moderate” pace, which is in line with many of the economic assessments that have been issued in recent weeks. The beige book report also indicates that the Philadelphia- and Atlanta-area economies are expanding faster than the economies in other areas of the U.S. The Fed says labor markets are slightly improving, as are banking conditions and housing. Bernanke warned that higher gasoline prices in the short term could boost inflation temporarily, but long-term expectations for inflation “remain subdued,” he said.
ASA: U.S. Economy Enters 2012 With Continued Growth

Hiring activity was up around the country, despite several contacts in a variety of industries expressing difficulty with finding skilled workers. Read more at americanstaffing.net.

Initial Jobless Claims in U.S. Lowest Since March 2008
Bloomberg (03/01/12) Alex Kowalski

New U.S. claims for unemployment benefits edged down last week, matching four-year lows, according to a U.S. Department of Labor report on Thursday that suggested the labor market was gaining momentum. Applications for unemployment insurance decreased 2,000 in the week ended Feb. 25 to 351,000. Economists forecast 355,000 claims, according to the median estimate in a Bloomberg News survey. The number of people on unemployment benefit rolls fell, while those getting extended payments also declined. Firing is on a downward trend as employers gain confidence in the outlook for economic growth. A smaller number of layoffs also puts those companies in place to hire additional employees as demand picks up.

Growth Spurt Drives Hiring, Wages Outlook
Associated Press (03/01/12) Christopher S. Rugaber

With the U.S. Commerce Department reporting an increase in economic growth in the fourth quarter of 2011, experts say the economy will experience modest growth associated with more robust hiring, rising incomes, and increases in consumer spending and business investment. The government also revised its estimate of income growth to reflect a 1.4% gain in inflation-adjusted income during the fourth quarter, and it indicates that incomes grew 0.7% in the third quarter instead of posting a 1.9% decline.

Unemployed? South Dakota Has a Job for You
CBS News (02/29/12) Kristi Eaton

Unemployment in South Dakota is about half the U.S. average, and businesses there are expanding. As a result, the state is facing a worker shortage. To help remedy the problem, South Dakota Gov. Dennis Daugaard will sign legislation authorizing the state to hire ManpowerGroup to bring in 1,000 out-of-state workers and convince former South Dakota residents who left the state to return. ManpowerGroup will begin recruiting workers starting April 1, says Robert Meyer, the staffing firm’s branch manager in Sioux Falls. The staffing firm will concentrate on recruiting a broad array of workers in manufacturing, engineering, and informational technology—from unskilled workers at the production level to highly skilled welders and machinists and professionals.


Legal Watch


New Round of Immigration Battles Set in the South
Los Angeles Times (03/01/12) Richard Fausset

The South will see more action on the illegal immigration front in the coming days, with Mississippi considering an Alabama-style immigration crackdown bill and a federal appeals court set to consider whether the Alabama law, and a similar one in Georgia, are constitutional.

The legislation and the courtroom battle will serve as a prelude to April 25, when the U.S. Supreme Court will hear oral arguments over Arizona’s controversial 2010 law that triggered a wave of state-level efforts nationwide to get tough on illegal immigrants. A ruling from the high court will likely give some guidance on how vigorous states can be in tackling immigration, a realm of policy that has traditionally been the responsibility of the federal government.

Sick-Time Rules Re-Emerge
Wall Street Journal Online (02/29/12) Sarah E. Needleman

Some cities and states are imposing paid sick leave mandates, with Connecticut doing so in January but exempting employers with fewer than 50 workers and Seattle slated to do so in September for employers of all sizes. The Society for Human Resource Management says the number of businesses with fewer than 50 workers that offered paid sick time fell to 32% in 2011 from 39% in 2009. Small firms insist they cannot afford to offer paid sick time. A 2010 survey of 473 employers by Mercer found that direct costs tied to incidental absences amounted to just 2% of payroll, but indirect costs, such as locating replacement workers, paying overtime, and disruptions that affect customer service, accounted for 3.8% of payroll.

FMLA: Flare-Ups Every Friday? Check It Out
Business Management Daily (02/29/12)

Companies that suspect employees are abusing Family and Medical Leave Act leave should carefully document their suspicions. For example, if an employee claims to have a flare-up every Friday or Monday or near a holiday, make note of his or her requests and when they coincide with other time off. Then conduct an investigation.

Court rulings have supported companies that call and check on their em­­ployees to make sure they’re resting at home during FMLA leave. Companies also can require employees to check in if they leave the house during sick leave. Companies may want to consider creating penalties for employees who violate the call-in rules.

According to a survey by ASA corporate partner CareerBuilder, employees are most likely to call in sick during the first quarter of the year, followed by the third quarter, the fourth quarter, and the second quarter. CareerBuilder says 28% of human resource professionals and managers surveyed have checked up on allegedly sick employees.

How Much Could Each Unauthorized Worker Cost You in Fines? $7,435
Lexology (02/23/12) Jared Leung

In January 2012, two U.S. employers settled charges by U.S. Immigration and Customs Enforcement of violations and hiring of unauthorized immigrants, for $2 million each. Criminal penalties in this field can be assessed—up to $3,000 or imprisonment for six months for each unauthorized immigrant. Civil penalties are divided into two categories: “paperwork” violations—generally innocent mistakes on the I-9 forms; and “hiring” violations—where the employer is suspected of knowing that the workers were without authorization and still hired them.

A paperwork violation carries a fine of $100 to $1,100 per incident, and that figure increases based on the percentage of incorrect forms. These are severe consequences for carelessness and inattention to the process, and even more severe consequences for deliberate disobedience. Employers should get their Forms I-9 in order by conducting a thorough audit. The only protection against the hiring of unauthorized workers is diligence with respect to verification of work authorization.


ASA for You


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