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Ortoli | Rosenstadt: What Exactly Is a Seller Responsible for When Selling Its Staffing Firm?
Buyers of a business generally expect sellers to be responsible for certain liabilities relating to when the seller owned its business—a concept mergers and acquisitions professionals refer to as indemnification. Indemnification is one of the most heavily negotiated, and potentially most significant, provisions of a purchase agreement, and understanding the terminology common to such agreements is essential when negotiating a deal. Attorney Paul Pincus of Ortoli Rosenstadt LLP explains what sellers are liable for, how a seller’s liability may be limited, and how buyers may seek to fund potential indemnity claims.
U.S. Jobless Claims Drop 5,000 to 271,000
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Leading Economic Index Bounces Back in October
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Philadelphia Fed: Manufacturing Conditions Showed Slight Improvement in November
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BBSI Confirms Delayed Filing of Third Quarter 2015 10-Q
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Wage Pressures Coming? U.S. Companies Start to Sound the Alarm
Reuters (11/19/15) Caroline Valetkevitch
Executives from nearly 20 S&P 500 companies have flagged labor costs, shortages, or wage pressure as headwinds over the course of the latest corporate earnings reporting season. Analysts warn that wage concerns are now spreading to a more diverse range of companies, such as airlines and construction, than restaurants and retail.
Free ASA Webinar Today—Getting Paid for the Work You Do
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See Photo Highlights From Staffing World®
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What’s Trending on ASA Central Right Now
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ASA Provides Strategic Business Intelligence—Renew Your Membership Today
For staffing companies, there is no better source for business-building news, resources, and research than the American Staffing Association. From helping you navigate the legal landscape to providing competitive benchmarking data to bringing you the latest news and connecting you with other staffing professionals, ASA provides the strategic business intelligence to grow your business and your career.
Continue to promote and maintain the best possible environment for your business. Visit americanstaffing.net/renew or contact the membership department at 703-253-2020 to renew your membership today.
Welcome New ASA Members
The ASA board of directors and staff welcome the following new members, which joined during the week ending Nov. 15.
Consolidated Staffing Solutions Inc.
West Covina, CA
HR Cos. LLC
Alpharetta, GA
IES Labor Services LLC
Charleston, SC
MDStaffers
Berkeley, CA
Outsource LLC
El Segundo, CA
North Carolina Courts Clarify Adequacy of Consideration for Restrictive Covenants
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How the Latest News Going Viral Can Lead to Employment Litigation
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Telecommuting—Employees Entering the Sharing Economy?
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Nursing Home Staffing Company Cited for Failure to Pay Overtime
Cherry Hill Courier Post (11/19/15) Phaedra Trethan
The U.S. Department of Labor’s Wage and Hour Division has ordered staffing firm Broadway Healthcare Management LLC to pay about 150 workers it placed in nursing homes $636,410 in back wages; the division also ordered the payment of $97,388 in legal and investigative costs. In a 2008 investigation, the division found that the Hackensack, NJ-based staffing firm cheated employees out of overtime pay, and the firm was then ordered to pay back wages. But the division recently found the firm had not complied with the original order and committed the same violations, resulting in a contempt finding and a new order.
El Cerrito, CA, Council Approves Minimum Wage Increase
Contra Costa Times (11/19/15) Rick Radin
The El Cerrito, CA, city council has voted to increase the minimum wage to $15 an hour in 2019. The minimum wage will increase to $11.60 an hour on July 1, 2016; $12.25 on Jan. 1, 2017; $13.60 on Jan. 1, 2018; and $15 on Jan. 1, 2019. Additional increases will be made annually based on changes in the Consumer Price Index.
Lexington, KY, Council Passes $10.10 Minimum Wage
Lexington Herald-Leader (KY) (11/19/15) Beth Musgrave
Lexington, KY’s urban county council has voted to raise the city’s minimum wage from $7.25 an hour to $10.10 an hour over the next three years. If the mayor signs the bill, the minimum wage would rise to $8.20 an hour on July 1, 2016; $9.15 on July 1, 2017; and $10.10 on July 1, 2018.
EEOC Issues Fiscal Year 2015 Performance Report
U.S. Equal Employment Opportunity Commission (11/19/15)
The U.S. Equal Employment Opportunity Commission in fiscal year 2015 secured more than $525 million for victims of discrimination in private and public workplaces. EEOC achieved record success in its conciliation of private-sector charges, with 44% of conciliations successfully resolved and 64% of systemic investigations resulting in voluntary resolutions. EEOC resolved 92,641 charges and received 89,385 charges in fiscal year 2015.
Employer Guide to Forklift Liability in the Workplace
Employment Law Lookout (11/18/2015) Mark A. Lies II; Patrick D. Joyce
The U.S. Occupational Safety and Health Administration defines a powered industrial truck (PIT) as “any mobile power-propelled truck used to carry, push, pull, lift, stack, or tier materials.” PITs include forklifts, manlifts, scissor lifts, boom lifts, and motorized hand trucks. The requirements for the operation and training of PITs outlined by OSHA applies to all such equipment.
OSHA’s powered industrial trucks standard requires that “the employer shall ensure that each powered industrial truck operator is competent to operate a powered industrial truck safely…”. The standard also requires that operators receive training in the topics that are applicable to the safe operation of the truck in the employer’s workplace. Employees must be trained separately for each different type of forklift they will be using. Employers must also develop a written program to train all employees who will be required and authorized to operate PITs and actually observe the employee operating the equipment under the physical conditions at the workplace, such as aisles, ramps, and loading docks. The employer must provide a certificate stating the employee has completed the training. The employee must be retrained and recertified every three years, at a minimum, or after an accident or “near miss” which resulted from an unsafe act. Employers are advised to conduct inspections of each individual piece of equipment at the beginning of each shift, and after any maintenance has been done. The standard list includes a number of conditions under which a PIT must be removed from service, which employers should regularly review.
Marijuana’s Cost to Employers
National Law Review (11/19/15)
With more state laws legalizing marijuana, employers may start facing challenges when trying to protect their employees from injury and to comply with federal requirements to maintain a drug-free workplace. Employers also face potentially costly litigation as case law surrounding legal marijuana develops, according to a paper by Quest Diagnostics. Quest reports that medical marijuana legalization brought forth a new phenomenon: the production of marijuana-infused foods and gadgets, which could present a special problem for employers. These modes of consumption could make it extremely difficult for employers to determine when employees are using marijuana on the job.
As marijuana use increases, workplace injuries, accidents, mistakes, and employee illnesses also could increase, which could affect the costs of companies’ liability, workers’ compensation, and health insurance. While there are various questions companies should begin asking to safeguard themselves, steps they can take to protect themselves include staying current with the changing legal landscape and adjusting workplace policies accordingly, remembering that marijuana is still illegal under federal law, and educating the workforce about the effects of marijuana, among other things.
Is the Classification of Rhode Island Workers Putting Your Business at Risk?
JDSupra (11/17/15) Jamie Bachant
The Rhode Island Department of Labor and Training has stated that the misclassification of employees as independent contractors is workplace fraud. Rhode Island, similar to other states, requires employers to withhold state and federal income taxes, Social Security taxes, and Medicare taxes for each of their employees. Additionally, employers must pay taxes on wages paid to employees as well as contribute to workers’ compensation premiums. Notably, independent contractors are not afforded the same protections as employees, such as family and medical leave and protections from discriminatory employment practices under the State Fair Employment Practices Act.
Misclassifying an employee as an independent contractor may result in fines, penalties, and private lawsuits in which affected workers seek, among other things, wages, benefits, and other relief, such as reinstatement of employment, fringe benefits, seniority rights, and reasonable attorneys’ fees and costs. It is particularly important for Rhode Island employers to properly classify their workers, due to the state’s agreement with the U.S. Department of Labor regarding the coordination of law enforcement efforts to prevent misclassification. Employers should consider the totality of the working relationship to determine how workers should be classified.
Can an Employer Give Preference to a Bilingual Job Applicant?
Lexology (11/16/15) Michael C. Wilhelm
A recent federal court case has demonstrated that an applicant’s bilingual language abilities can serve as a legitimate, nondiscriminatory rationale for a hiring decision. In George v. Hennepin County, the plaintiff filed an age discrimination lawsuit after the employer hired a younger candidate for the position he had applied for. The younger candidate was already working at the clinic and had demonstrated the ability to work well with the office’s Spanish-speaking clients. The clinic considered her Spanish abilities sufficient enough for her to qualify as bilingual, and hired her over the 51-year-old plaintiff, who had limited Spanish language ability.
The plaintiff argued, among other things, that the clinic discriminated against her because it did not contact her to determine the extent of her Spanish language abilities, as it did for the younger candidate. The court rejected the plaintiff’s argument, reasoning that the record amply supported the clinic’s need for a bilingual hygienist. The court also found that the clinic adequately explained why it contacted the younger candidate for a better explanation of her Spanish speaking abilities based on prior experience with the younger candidate. As such, the court dismissed the claims on summary judgment.
Rising Rates Pose Challenge to Health Law
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Why It Matters That New Businesses Are Creating Jobs More Slowly Than a Decade Ago
Wall Street Journal (11/19/15) Eric Morath
Newly formed businesses are adding jobs at a much slower pace than they were a decade ago, a factor that is restricting employment gains. The number of jobs created by new businesses fell 7% in the first quarter from the fourth quarter of 2014 on a seasonally adjusted basis, according to the U.S. Department of Labor. This figure is down 18% from 10 years ago. Concurrently, the number of job losses due to business closures is down 21% from 2005. Both numbers reflect less risk-taking, and possibly innovation, occurring in the economy.