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April 24, 2012

April Staffing Up 6.9% From a Year Ago


Staffing employment in April is up 6.9% from April 2011, according to the ASA Staffing Index.

The index value for April is 91, up two points from the 89 reported for March. Since the beginning of 2012, temporary and contract employment has grown 22.0%, according to the index.

To view weekly index data, visit americanstaffing.net.
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Headline News
CTG First Quarter EPS Increased 18% to $0.20
Heidrick & Struggles Reports 2012 First Quarter Financial Results
Jobs Turn Ugly. Will Fed Swoop In?

ASA for You
Free ASAPro Webinar Today—Recruiting in the Cloud
Just Posted: Staffing World® 2012 Workshops

Legal Watch
Preparations Under Way for New Union Vote Rules Next Week
Top GOP Senator, Business Groups Blast EEOC’s Process on Potential Guidance
Nebraska Enacts Job Reference Immunity Act
FY 2013 H-1B Cap Filing Season Began on April 2
Royalties Are Excluded From Total-Sales Calculations Under the SBTA
Act Now Advisory: EEOC’s Amended ADEA Regulation Raises the Bar for Employers’ RFOA Defense
A Tender Topic: Securing Insurance Coverage in Employment Litigation or Employee Theft Matters

Trends and Research
Hotel Hiring Rebounds as U.S. Tourism Overcomes Slump
Earth Day 2012 Sees More Online ‘Green’ Job Ads


Headline News


CTG First Quarter EPS Increased 18% to $0.20
CTG News Release (04/23/12)

CTG has announced its financial results for the 2012 first quarter, which ended on March 31, 2012. Net income rose to $3.36 million, or 20 cents per share, from $2.82 million, or 17 cents per share, a year ago. Revenue increased 7.8% to $103.36 million from $95.90 million in the year-over-year period.

“This quarter’s robust increases in margins and earnings primarily reflect continued growth in our health solutions business,” says CTG chairman and chief executive officer James Boldt. Client demand remains very strong in the health care division, he said—revenue increased 19% in the first quarter, while demand in lower-margin information technology staffing moderated.

Staffing revenue was consistent year-over-year, at $62.2 million, or 60% of total revenue, compared with $62.2 million, or 65% of total revenue, in the 2011 first quarter. CTG’s guidance for 2012 assumes that its staffing business will remain relatively stable in 2012.

Heidrick & Struggles Reports 2012 First Quarter Financial Results
Heidrick & Struggles International Inc. News Release (04/24/12)

Heidrick & Struggles International Inc. today announced financial results for its first quarter ended March 31, 2012. Consolidated net revenue was $106.5 million in the first quarter, down 7.9% from $115.6 million in the 2011 first quarter. Net income was $0.7 million and diluted earnings per share were $0.04. “We demonstrated considerable progress in managing expenses, which resulted in improvements in operating income and operating margin in a very tough revenue climate,” said chief executive officer L. Kevin Kelly. “Net revenue reflected weak confirmation trends in the 2011 fourth quarter, which continued to some extent into the first quarter.”

Jobs Turn Ugly. Will Fed Swoop In?
Fox Business (04/23/12)

Economic analysts expect the U.S. Federal Reserve’s Federal Open Market Committee meeting Wednesday will affirm the central bank’s current monetary policy. However, some recent economic data support the view that the recovery remains tentative and that very accommodative policies are still necessary. The March employment numbers came in well under expectations, and the number of initial jobless claims for unemployment benefits has unexpectedly climbed in recent weeks since hitting a low point in February. Despite the possibility that sluggish expansion could slow down job growth, the minutes from the last meeting revealed that only a “couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum.”

The Federal Reserve is expected to reiterate the pledge to keep rates at the current level, targeting between zero percent and 0.25% until 2014. “The Federal Reserve has more or less committed itself to keeping the Fed funds rate at zero until 2014 unless the economy starts to grow pretty fast. I think that is the most that can be said,” observes Charles Weise, Ph.D., economics professor at Gettysburg College in Gettysburg, PA.


ASA for You


Free ASAPro Webinar Today—Recruiting in the Cloud

You’ve probably heard about “cloud computing,” but do you know how you can use distributed data storage to improve how you recruit candidates and interact with clients? Find out this afternoon from 3 to 4 p.m. Eastern time during the ASAPro Webinar “Recruiting in the Cloud.”

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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Just Posted: Staffing World® 2012 Workshops

ASA has just posted details about the dozens of workshops that will take place at Staffing World, Oct. 9–11 in Las Vegas. The workshops, keynote presentations, Immersion Programs, and Knowledge Network, result in three intense days of high-level, industry-specific executive education you won’t find anywhere else.

To learn more and to register, visit staffingworld.org.
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Legal Watch


Preparations Under Way for New Union Vote Rules Next Week
Bloomberg BusinessWeek (04/23/12) William McQuillen

The National Labor Relations Board rules that will simplify union-election procedures and reduce the time for balloting after a vote is requested by employees go into effect April 30. The rules will compress the election schedule to as few as 15 days, and employers need to be brought up to speed on the new rules because they must present arguments against collective bargaining prior to employees seeking a vote. The U.S. Chamber of Commerce is waiting for a federal judge to rule on its lawsuit to block the rule, and U.S. Sen. Mike Enzi (R-WY) is pushing for a resolution of disapproval of the rule due to concerns that employees would be given less time to learn their rights; however, President Obama’s advisers would recommend that the resolution be vetoed.

The U.S. Bureau of Labor Statistics says union membership fell to 11.8% in 2011 from 11.9% in 2010, marking the second consecutive year that membership reached a record low. However, the number of unionized workers edged up by 50,000 to 14.8 million.

Top GOP Senator, Business Groups Blast EEOC’s Process on Potential Guidance
Bloomberg BNA (04/23/12) Kevin P. McGowan

U.S. Sen. Michael Enzi (R-WY) and a coalition of employer representatives have sent separate letters to the U.S. Equal Employment Opportunity Commission and the White House Office of Management and Budget to object to the EEOC’s closed-door process prior to likely commission votes April 25 on two enforcement guidances under Title VII of the Civil Rights Act of 1964 and the Americans With Disabilities Act. Enzi’s letter to EEOC chairman Jacqueline Berrien stated that EEOC’s intention to vote on revised guidance concerning companies’ use of arrest and conviction records without sharing the draft with agency stakeholders “confirms our view that this process has been done behind closed doors and the result will be an unwelcome surprise for conscientious employers hoping to expand hiring.”
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Nebraska Enacts Job Reference Immunity Act
Labor & Employment Law Update (04/12)

Nebraska Gov. Dave Heineman has signed LB 959 into law. The enactment of the statute means companies may be able to get more comprehensive reference information about a job applicant’s prior employment. The statute provides companies immunity from liability when they disclose reference information to a prospective employer about current or past employees. However, immunity is conditional upon the disclosing company obtaining a valid consent form signed by the employee.
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FY 2013 H-1B Cap Filing Season Began on April 2
Lexology (04/17/12)

As of April 2, companies were able to file cap-subject H-1B visa petitions regarding employees in specialty occupations for fiscal year 2013. U.S. Citizenship and Immigration Services said on April 5 that 22,323 cap-subject H-1B petitions had been received as of April 4. The number of filings received in the first few days of this year’s filing period was nearly twice the number of filings received by USCIS during the same period in 2011. Companies with a projected need for H-1B employees are advised to file petitions as soon as possible.

Royalties Are Excluded From Total-Sales Calculations Under the SBTA
JDSupra (04/23/2012) Nicole Mazzocco

Under the Single Business Tax Act, royalties from the licensing of trademarks, trade names, and know-how should not be included in total-sales calculations, affirmed the Court of Appeals in Kelly Services Inc. v. Department of the Treasury. The court indicated that royalties did not fit the definition of “sales” spelled out in previous cases and determined that royalties do not constitute “gross receipts,” which involve both sales and rental or lease receipts. Moreover, it determined that royalties do not involve a transfer of title because licenses are intangible property and that the law would not cover royalties even if they met the definition of “sale” because licensed trademarks, trade names, and know-how are not applicable property under SBTA since they do not meet the definitions of “stock in trade,” “property of a kind that would be properly included in the inventory of the taxpayer,” or “property held by the taxpayer primarily for sale to customers in the ordinary course of trade or business.”

Act Now Advisory: EEOC’s Amended ADEA Regulation Raises the Bar for Employers’ RFOA Defense
Epstein Becker Green (04/20/2012)

A final rule that amends the “reasonable factors other than age” defense under the Age Discrimination in Employment Act has been issued by the U.S. Equal Employment Opportunity Commission. Slated for implementation on April 29, the final RFOA rule forces employers seeking to establish the reasonableness of a policy or practice resulting in an age-based adverse impact to comply with strict procedural and factual requirements. Under the final rule, “Any employment practice that adversely affects individuals within the protected age group on the basis of older age is discriminatory” unless the employer justifies the practice as a RFOA. The factor must be “objectively reasonable when viewed from the position of a prudent employer mindful of its responsibilities under the ADEA under like circumstances.”

A Tender Topic: Securing Insurance Coverage in Employment Litigation or Employee Theft Matters
Lexology (04/18/12) Neal T. Buethe

Even when a company has employment practices liability insurance and fidelity bond coverages, the company can complicate or lose this protection if it improperly tenders a claim to the insurance company. Companies should take the policy-prescribed steps to secure coverage and work with legal counsel to protect the company’s rights while perfecting tender. This means not compromising the claim, allowing it to default, or making assurances to employees. It also means immediately reviewing the policy’s notice and tender provisions and then making a timely, documented submission to the insurer that tenders the matter for coverage under the terms of the policy.


Trends and Research


Hotel Hiring Rebounds as U.S. Tourism Overcomes Slump
Bloomberg (04/24/12) Anna-Louise Jackson; Anthony Feld

As U.S. tourism rebounds, hotels and motels are increasing their hiring. The number of U.S. employees at hotels, motels, and casino hotels increased 2.9% in February from February 2010, according to data from the U.S. Department of Labor. The U.S. Federal Reserve says hotel-service companies in the Fed’s St. Louis district have “announced plans to expand operations and hire new workers.” Meanwhile, Marriott International, the largest U.S. hotel chain, predicts that its U.S. hiring will increase 6% this year.

Earth Day 2012 Sees More Online ‘Green’ Job Ads
Wanted Analytics (04/23/12) Abby Lombardi

More than 28,000 job ads were posted online for “green” jobs in March, representing a 19% increase compared with March 2011. Engineering-related jobs are highly in demand to create the next generation of environmentally friendly products. In addition, many electrician and HVAC job positions are appearing in ads, as many homes and buildings are trying to reduce energy costs by installing more energy-efficient air conditioning and heating systems.