Issue Papers
Temporary and contract staffing firms play a vital role in the economy by providing employment flexibility for workers and just-in-time labor for businesses. Recently updated to include current industry employment data, this ASA issue paper (PDF 166 KB) was originally prepared in April 2004 for Senate majority leader Bill Frist (R-TN) and the White House labor staff. It details the economic benefits of flexible labor. It's an excellent resource for staffing professionals to use in talking to their representatives about the advantages of temporary and contract employment.
Staffing firm clients have increasingly adopted policies limiting the length of assignment of staffing firm workers as way to protect against the kind of "retro-benefits" claims faced by Microsoft. Some client policies appear to be based on the erroneous belief that, after working for a certain period of time, staffing firm employees are automatically eligible for coverage under the client's benefits plans. To help dispel some of the common misperceptions, ASA has developed an issue paper (PDF 98 KB) that discusses the basic principles of law that apply to employee benefit plans and the steps clients can take to avoid retro-benefits exposure. The paper cites this IRS Technical Advice Memorandum (PDF 56 KB) and this IRS Quality Assurance Bulletin (PDF 33 KB).
For the first time, ASA has published an issue paper (PDF 127 KB) providing guidance on the obligation of staffing firms to comply with federal record-keeping and affirmative action rules administered by the Equal Employment Opportunity Commission and the Office of Federal Contract Compliance Programs. The paper addresses whether temporary employees are covered by the rules, including the Internet applicant rules recently issued by the OFCCP. It also discusses client requests for employee race and ethnic data, and how staffing firms should respond.
A 2006 California Supreme Court ruling raised concerns that temporary employees might have to be paid immediately whenever their assignments end on the theory that the end of an assignment constitutes a discharge from employment. Such an interpretation would have imposed an impossible requirement on staffing firms. Without legislative clarification, staffing firms faced the prospect of paying millions of dollars in wage penalties and costs to convert their payroll systems. To avoid that result, ASA and California Staffing Professionals, an ASA-affiliated chapter, sponsored legislation to clarify that the end of an assignment is not a discharge from employment. This issue paper (PDF 62 KB) explains the new law (PDF 83 KB), which went into effect Jan. 1, 2009.
Massachusetts has issued final regulations that will significantly change the obligations of individuals and employers under the state's health care reform law. After Jan. 1, 2009, the contribution requirements will depend on an employer's size. Details regarding the new rules, including filing deadlines and record-keeping requirements, are available in this newly revised guide (PDF 125 KB) to the Massachusetts Healthcare Reform Act.
The nation's first paid sick leave law became effective in San Francisco Feb. 5. The city has published information regarding the ordinance, but some details of particular interest to staffing companies may not be covered by the city's publications. ASA has prepared an issue paper (PDF 71 KB) specifically relating to the staffing industry based on the ordinance and the city's published information and also on discussions with association members in San Francisco and city officials.
This ASA issue paper (PDF 86 KB) discusses how new federal privacy regulations apply to staffing firms that assign employees to health care and financial organizations.
Staffing firms have the right to be free from unlawful interference with their employee relationships, but the law recognizes many competing interests. This ASA issue paper (PDF 108 KB) discusses the legal remedies that may be available against tempnapping, the role of the ASA code of ethics, and how language in agreements with clients can provide important protection.
ASA has published a legal analysis outlining potential arguments and defenses that may be available to staffing firms in the ongoing Ensemble Chimes Global bankruptcy proceeding. The Chimes legal analysis, prepared for ASA by bankruptcy experts Lee W. Stremba, Esq., and Katherine Ash, Esq., of Troutman Sanders LLP, discusses several potential arguments that may be available to staffing firms to defend against preference claims initiated by Chimes’ trustee. Staffing firms are cautioned that the paper does not constitute legal advice, and are urged to share the analysis with their own bankruptcy counsel.
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