What are some legal issues that staffing companies face?

On Behalf of | Feb 16, 2021 | Employment Law -- Employer |

For many unemployed workers in Pennsylvania, staffing companies are a great resource that helps them get back on their feet. However, staffing companies have to adhere to employment law just as much as regular business owners. If one of their clients has an issue, they might decide to sue the staffing company.

Legal issues that staffing companies face

When you launch a staffing company, it’s important to hire a staffing company attorney as soon as possible. Otherwise, you might be vulnerable to legal challenges. For example, if your company misclassifies a client as an independent contractor, their job won’t have to give them overtime pay. The client could sue you for breaking employment law and making them lose out on income.

A staffing company might be an in-between for employees and companies, but they still have to comply with OSHA and ADA laws just like a regular business. A client could sue your staffing company if they suspect that one of your employees discriminated against them because they have a disability. Additionally, if a business furloughs one of your clients, they’ll file employment through your company–not their current place of work. As a result, you’ll have to comply with all unemployment laws or risk facing a lawsuit.

Finally, you’ll have to write a contract for each business before they agree to hire one of your clients. Since you’re responsible for certain working conditions, a client could sue you if they have an issue with their job.

How can staffing companies protect themselves?

An employment law attorney could help you protect your company from lawsuits and other legal disputes. Your attorney might ensure that you comply with all applicable laws and prepare airtight contracts that don’t leave you open to potential lawsuits.