American Staffing Association (04/23/12) Stephen Dwyer

The California Division of Labor Standards Enforcement has issued revised answers to frequently asked questions about, and a revised model wage notice form for complying with, a law that requires employers to provide certain wage and other information to employees at the time of hire. The FAQs were revised in response to questions and concerns expressed by employers regarding the wage notice requirement. ASA was among the first to seek clarification of the notice requirements, pointing out that the original model DLSE form was problematic because it appeared to require that staffing firm clients provide the notice to the staffing firm’s employees. The revised form clarifies that staffing firms, not their clients, are responsible for providing the notice to temporary employees.

Concerns remain for staffing firms, such as revised FAQ No. 30, which suggests that, if the client is not known at the time of hire, the client’s name, address, and telephone number must be provided to the employee, either in a new notice or on a timely paystub. This is not practical for staffing firms, especially in cases where temporary employees are assigned to multiple clients in the same pay period.

To address these concerns, ASA representatives will meet with the California labor commissioner May 8 to discuss the compliance issues the FAQs pose for the staffing industry. While waiting for clarification from DLSE, California staffing firms should consider using the suggested notice form developed by ASA, which reflects the practical realities of the temporary staffing business and which the association believes is consistent with the law.

Detroit News (04/23/12) Bill Bowen

The number of fair wages cases investigated by the U.S. Department of Labor has increased since the economic downturn. The number of cases investigated by the department’s Dallas office alone rose from 642 in 2008 to 1,193 in 2011, and recently workers of Dallas-based Temp Team Inc. won $244,000 in overtime back wages due to being misclassified as exempt.

Experts attribute the increases in investigations and lawsuits involving overtime pay to companies working to scale back labor costs, a boost in DOL funding and enforcement, and employers simply not understanding the complex rules. Others say the Fair Labor Standards Act is no longer relevant, as clear demarcations between managers, hourly employees, administrative workers, and outside salespeople are gone; more workers have flexible hours, telecommute, or are connected to their jobs no matter the hour or location by mobile devices; and more employees are placed by temporary staffing firms or operate as independent contractors. Experts say most violations involve training issues, meaning that managers simply need to be educated about the law.

Business Management Daily (04/22/12) David B. Ritter

The Veterans Opportunity to Work to Hire Heroes Act amended the Uniformed Services Employment and Reemployment Rights Act to prohibit discrimination based on military status in regard to “the terms, conditions, or privileges of employment.” Employees can now bring a hostile work environment cause of action under USERRA, as the amendment establishes the same standard as a Title VII hostile work environment claim.

Lexology (04/11/12) Pierre Georges Bonnefil; Patrick G. Brady; Robert S. Groban Jr.; et al.

Two Houston companies have each agreed to pay $2 million in fines to settle allegations they knowingly hired undocumented workers, U.S. Immigration and Customs Enforcement reports. ICE audited Champion Windows and Advanced Containment Systems Forms I-9 and found a “pattern and practice” of serious violations, including a large percentage of undocumented workers who were hired based on “egregiously suspect” identification and employment eligibility documents.