Federal Court Rules IT Recruiters Are Not Exempt From OT Pay: 4 Steps for Staffing Firms to Ensure Compliance
A Pennsylvania federal court dealt a blow to staffing firms that classify recruiters as exempt from overtime, ruling that a staffing firm must provide their IT recruiters overtime pay because they perform “routine sales production work” rather than administrative duties. The February 11 decision in Thomas v. TEKsystems, Inc. marks the second federal court in recent years to reject the administrative exemption for recruiters at the same company, and raises serious questions about whether staffing firms across the industry have been misclassifying their own workers for years . Here’s what staffing companies need to know about this decision and four steps to help your wage and hour compliance efforts. The Decision: Recruiters Are Producers, Not Administrators In Thomas v. TEKsystems , seven former recruiters sued their employer, alleging the IT staffing firm misclassified them as exempt from the Fair Labor Standards Act’s overtime requirements . US District Judge William...