November 22, 2022

ASA Staffing Index: Staffing Employment Remains Steady in November

Published November 22, 2022 ■ Announcement

Staffing employment was steady in the week of Nov. 7–13, edging up 0.3% to hold at a rounded value of 108. Staffing companies mentioned several factors—including conversions of temporary workers to permanent, a holiday, and seasonal business fluctuations—as barriers preventing further growth. Staffing jobs were up 0.5% from the same week last year.

New starts rose in the 45th week of the year, increasing by 1% from the prior week. Nearly four in 10 staffing companies (39%) reported gains in new assignments week-to-week.

The ASA Staffing Index four-week moving average edged up from the prior week to hold at a rounded value of 108, as temporary and contract staffing employment for the four weeks ending Nov. 13 was 1.3% higher than the same period in 2021.

“Staffing employment remains slightly above the level seen at this time in 2021, though the gap has narrowed in recent weeks,” said Tim Hulley, ASA assistant director of research.

This week, containing the 12th day of the month, will be used in the November monthly employment situation report scheduled to be issued by the U.S. Bureau of Labor Statistics Dec. 2.

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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.

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ASA, NJSA Advocacy Delays Antistaffing Legislation Vote

Published November 22, 2022 ■ ASA Advocacy Update

In a major win for the staffing industry, the New Jersey State Senate chose yesterday not to vote on Gov. Murphy’s conditional veto of A 1474, an onerous bill that would make it harder for staffing agencies to do business in the Garden State. ASA; the New Jersey Staffing Alliance, an ASA-affiliated chapter; and staffing agencies engaged in intense advocacy, resulting in the bill being pulled from consideration because the senate did not have enough votes for passage. This marks the second time the vote was tabled, as advocacy forestalled the bill’s passage in October.

A 1474, which applies to construction, light industrial, and other workers—but not professional or clerical workers—would, among other things

Require staffing agencies to pay at least the average rate of pay, as well as the average cost of benefits or the cash equivalent, of what client employees performing the same or substantially similar work receive
Impose a limitation on conversion fees
Prohibit agencies from charging a fee for providing transportation

ASA and NJSA engaged in a prolonged grassroots campaign, explaining to senators why the bill is bad for workers and the staffing industry, and were successful in persuading one senator to introduce an alternative, more palatable, bill.

On Oct. 6, Sen. Holly Schepisi introduced S 3182. Modeled after the Massachusetts Temporary Worker Right to Know law, the legislation contains several provisions found in A 1474 that protect temporary employees but presents fewer operational issues for staffing agencies.

The senate may still take up A 1474 on Dec. 22. Between now and then, ASA will continue to urge senators to support S 3182 as a compromise bill. ASA and NJSA also will be reaching out to staffing agencies doing business in New Jersey to ask them to contact their state senators to support S 3182.