A California electronics manufacturer agreed to work with a staffing firm, but difficulties emerged when the company sought to hire the staffing firm’s workers onto their own payroll.
During interviews with the staffing firm’s employees, several of the employees told the company’s supervisor that they did not want to convert to full-time status with the company. When pressed further, it was disclosed that the staffing firm workers were concerned that they did not have the “proper documentation” to become employees of the company.
According to court documents, 47% of the employees placed by the staffing firm were not authorized to work in the US. The company said in the filing that it immediately ceased the assignments of those workers but suffered a 50% drop in plant capacity. The company’s own workers were forced to work significant amounts of overtime, and the company experienced a higher-than-normal attrition rate, the complaint said.
Ensuring compliance with hiring and employment laws is critical for all employers. At Flex-Staff, we not only verify the identity and employment eligibility of all of our assigned employees by completing a Form I-9, we also utilize the federal E-Verify system as a backup measure to ensure that the employees we assign to our client companies are legally authorized to work in the United States.
Staffing Industry Analysts (2/4/2025) Johnson, Craig