Legal Blog

Telebriefs®: Are Staffing Firms Responsible for Paying Temporary Employees Overtime?

As an employer, it is of the utmost importance to understand the legal implications of using a staffing firm to hire a temporary workforce and how to avoid ending up in a lawsuit. The Department of Labor recently issued a press release highlighting the employee wage and hour issues that can arise when working with a staffing firm. In this specific matter, J&J Snack Foods Corporation used two staffing firms to hire hundreds of temporary employees. Both J&J Snack Foods Corp. and the two staffing firms violated the Fair Labor Standards Act (FLSA) when they did not pay minimum wage or overtime to these temporary employees, which resulted in millions of dollars in damages. Even though the staffing firms were technically responsible for paying these temporary employees the correct amount, under the FLSA a company that uses employees hired by a staffing firm is responsible for employee wages when the economic reality shows that they are economically dependent on – and thus employed by – another entity involved in the work. As a result, J&J Snack Foods Corp. was also held liable for both the wages and liquidated damages of hundreds of workers. To learn more about why J&J Snack Food Corps was responsible and how to avoid these charges in your workplace, listen to Dec 23th Telebrief here Also in this week’s Labor & Employment Telebrief: the importance of drafting a comprehensive sexual harassment policy in your workplace and how it can protect you from a lawsuit.  


Geared to executives with employee relations responsibilities (HR directors, supervisors, managers, business owners), Labor and Employment Telebriefs® are information-packed 30 minute briefings via the telephone. Telebriefs® provide information and insights to help executives stay current with latest workplace law developments and in front of trends so as to enable proactive policy making and management . On the 2nd and 4th Wednesday of each month, from 9 – 9:30 am ET, join Offit Kurman Labor & Employment Chair Howard Kurman, as he discusses developments occurring over the past two weeks that will most significantly impact employers nationwide. The focus is squarely on the practical. Why is this event significant for employers? What are the lessons to be learned or actions taken? These twice-monthly teleconferences are an easy way to stay current and compliant with the latest Labor and Employment law developments that will significantly affect you and your company.  Our guarantee: You will learn something useful, on every call! If you have any questions regarding  labor and employment issues please contact Howard Kurman: | 410.209.6417


Howard Kurman website Howard K. Kurman is Chair of the firm’s Labor & Employment Department. Mr. Kurman regularly counsels clients on all aspects of proactive employment/labor issues. He represents employers ranging in size from as small as 20 employees to those employers with geographically disparate locations consisting of over 4,000 employees. Mr. Kurman assures, through regular contact with his clients, that they promulgate and maintain the most effective employment policies that will, to the extent possible, minimize their legal exposure in today’s litigious workplace.

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