Staffing Regulation: 3 Issues to Watch

While the Affordable Care Act is at the forefront of the minds of many of those in the staffing industry, there are other regulations that also warrant attention. While not all may apply to your firm, they are hot-button issues that may crop up in the staffing industry in the future.

Wage theft prevention/right to know

Among the new labor laws in 2013 that were attempted, Connecticut, Nevada and Oregon tried to enact versions of New York City’s wage Theft Prevention Act but met with negative response. Acts such as these would require staffing firms to notify temporary employees of wage rates, dates of assignments, workers’ compensation carrier information and safety protocols. Look for these regulations to pop up again in these and potentially other states.

Paid sick leave

Portland, Ore., and New York City both adopted laws regarding paid sick leave in 2013. In Portland, the law requires employers with six employees or more to provide paid leave for personal or family illness and safety concerns. In New York City, the law says that employers with 20 or more employees must provide paid sick leave of up to five days by April 2014, while those with 15 to 19 employees must do so by October 2015. All others businesses must offer up to five unpaid days for sick leave per year. These provisions may apply to staffing firms, as well; check with your legal team and human resources at your staffing agency to see if your staffing firm is required to provide paid sick leave.

Credit history use

Another agency workers regulation is in place in California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Vermont, Oregon and Washington. This regulation restricts an employer’s ability to use credit history for determination of employment. In October, Nevada joined these states, making it illegal for an employer to request or use credit reports or other financial information to determine employment or discriminate against an employee. Some exceptions apply, including whether the information is reasonably related to the position. This is an ongoing topic of consideration, and more states may introduce similar laws in the future.