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No Matter What’s Ahead for the Economy, Be Prepared With the ASA Growth Tool Kit

Are you ready to safeguard your company’s future and be prepared to weather any forecast? The ASA Growth Tool Kit was developed especially for staffing companies—it’s designed to empower them with the data, analysis, and business intelligence they need to weather any economic challenge and to take advantage of opportunities that can accelerate growth.

The ASA Growth Tool Kit is a comprehensive repository of resources such as economic, business, and industry news; educational resources; articles, market analysis, and economic research. Access the ASA Growth Tool Kit at

Free ASA Webinar This Month—Managing Your Online Reputation

Are you aware of how your online reputation could factor into your ability to persuade clients and attract candidates? Get insights from industry leaders—Eric Gregg of ClearlyRated, the association’s satisfaction survey partner, will facilitate a discussion during the ASA webinar “Online Excellence: Why Reputation Matters for Recruiter Success.” It takes place Tuesday, Jan. 23, 2–3 p.m. Eastern time.

All ASA webinars are free for ASA members, and most qualify for continuing education hours toward ASA certification renewal. To learn more and to register, visit

Federal Court: Temporary Employee Not Required to Arbitrate Claims Against Client

A New Mexico federal court denied a staffing firm’s motion to compel arbitration of a temporary worker’s claims against the firm’s client, holding that the arbitration agreement unlawfully denied his rights under the Fair Labor Standards Act.

After the temporary worker filed a proposed FLSA collective action claim against the client, the client filed a third-party complaint against the staffing firm. Pointing to the employment agreement the worker signed with the staffing firm that mandated arbitration, the staffing firm then asked the court to compel arbitration in the action between the worker and the client.

Although the court agreed that the arbitration agreement encompassed the worker’s claims against the nonsignatory client and that the staffing firm had standing to seek enforcement of the agreement against the worker, the court refused to enforce the arbitration agreement, finding that the language denied the worker guaranteed rights under the FLSA.

Specifically, the court invalidated language that mandated the parties share costs during the arbitration, finding that requiring the worker to front the significant expense of arbitration would make pursuing arbitration “prohibitive and impractical.” The court also found the agreement unlawfully required the worker to file any dispute within one year, notwithstanding the FLSA’s statute of limitations of two years, and the requirement to pay his own attorneys’ fees was “incomplete and potentially misleading” in light of the FLSA’s mandatory award of attorneys’ fees to a prevailing plaintiff. The staffing firm asked the court to sever those portions and compel the remaining arbitration provisions, but the court refused to do so and invalidated the entire arbitration agreement. The arbitration agreement contained no severability clause.

Arbitration agreements can be a powerful tool in an employer’s toolbox, especially against class actions. Staffing firms are encouraged to review their arbitration agreements with outside counsel to ensure existing language does not overreach or become so restrictive of a plaintiff’s rights such that a court might deny its enforcement. Firms should also discuss with their counsel inclusion of a severability clause such that, if one aspect of the agreement is struck down as unlawful, other provisions are not similarly struck down.

To read the case, see Cruz v. AerSale Inc., 2024 WL 22092 (W.D. N.M. Jan. 2, 2024).