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ASA Publishes Client Payment Terms Issue Paper

Because staffing firm clients increasingly demand extended payment terms when satisfying staffing firm invoices, the American Staffing Association has published an issue paper setting forth the staffing industry’s perspective on clients’ payment practices in an effort to help them optimize financial results.

Designed to be shared with clients and drafted under the auspices of a working group of the ASA board of directors, the issue paper points out that employment law dictates when employees must be paid. Because there is a fixed and limited timeline within which wage payments must be made to employees, staffing firms are limited in their ability to offer clients alternate payment terms. Accordingly, the issue paper advises clients that extended payment terms can increase the cost to deliver staffing-related services, and staffing firms are able to offer the most competitive rates to clients that pay their invoices shortly after staffing employees are paid.

Access the client payment terms issue paper at