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April 27, 2016

Top US Wage & Hour Official Calls for Partnership with American Staffing Assoc

American Staffing Association (04/25/16) (Total Placement, Local Member)

At our law conference last week, Dr. David Weil, administrator of the U.S. Department of Labor’s Wage and Hour Division, called for a partnership between his agency and the American Staffing Association (see DOL website).

The overture came at the end of a session moderated by ASA senior counsel Ed Lenz on Weil’s book. The book addresses the challenges faced by regulators in enforcing workplace laws in the case of work arrangements, including staffing, that involve multiple employment relationships. Weil said staffing companies and DOL share many of the same concerns when it comes to compliance with labor laws. “Working together, we can achieve common goals”. All parties agreed to make it happen.

On the issue of a level playing field, Lenz noted ASA concerns that less scrupulous staffing firms are misclassifying workers to avoid paying payroll taxes, overtime wages, and to lower Comp premiums as well as other associated costs in order to lower their rates. This places firms that take their employer obligations seriously at a major competitive disadvantage. Weil urged staffing firms that believe competitors are engaging in unlawful practices to make use of the DOL complaint process to report suspected violations.