Staffing Firms Just Scored a Key Win on Recouping Expenses: 7 Key Takeaways and Practical Steps For Your Business
A new federal appeals court decision just delivered welcome clarity for staffing companies that provide optional benefits and deduct the expense from employees’ wages. The December 5 ruling from the 11th Circuit Court of Appeals held that a staffing agency can deduct the cost of optional job-site transportation and does not have to pay workers for travel, waiting time, or tool-pickup tasks, so long as those activities aren’t part of the employee’s core work . It’s a solid win for staffing agencies in Florida, Georgia, and Alabama, but industry leaders across the country can also benefit from the lessons this case teaches. Here are seven key takeaways staffing companies can take from the Villarino v. Pacesetter Personnel Service decision, along with a list of specific action items you can put into place. What Happened? The dispute began when a group of day laborers sued Florida-based Pacesetter Personnel Service, arguing that the company’s long-standing transportation system ...