Judge Orders Staffing Firm to Shut After Trade Secret Dispute

A judge in Idaho has ordered a staffing firm to shut down for one year, citing concerns that the firm's owner violated trade secret laws by leaving his old staffing firm and allegedly using that firm's office equipment and client lists to set up a competing firm.

According to published reports, the individual originally worked as chief operations manager for a staffing firm that required all employees who had access to confidential client lists to sign an agreement prohibiting them from starting a competing business.

Beginning in 2008, however, the individual allegedly began asking the firm's employees to sign new contracts that excluded the noncompete clause.

Soon after, the individual left the staffing firm and started his own competing firm across the street. His new staffing firm reportedly soon had 42 clients, of which 29 were former clients of his old firm. It also had 536 temporary employees, of which it was alleged that 76% were formerly employed by his old staffing firm. Moreover, the aggrieved staffing firm reported losing 80% of its business.

As a result, the court ordered an injunction and demanded that the new staffing firm cease operations for up to one year.

Temporary Employment Not a 'Dead-End'

People hired through staffing firms can move relatively quickly between temporary and permanent jobs, according to a study by the University of Florida. Researchers say that these findings counter characterizations of temporary help employment as "dead-end" and "inescapable."

In their analysis, the researchers found that during a four-month period, for instance, more than three-fourths of workers in temporary positions moved into permanent jobs, while 23% took another temporary assignment. In ASA research, 77% of polled staffing employees told the association that temporary employment is a good way to obtain a permanent job.

"There has been concern by some groups that the temporary help industry is creating an entire class of people who are churning through temporary-help jobs and can't escape from that cycle," said lead author and UF economist Sarah Hamersma. As a result of this survey, however, Hamersma and her team concluded that there is "no reason to believe that a large number of temp workers are 'stuck' in a secondary labor market."

The research also found that temporary employees generally receive higher hourly pay—around 15% more—than their permanent counterparts, which Hamersma suggests may be to compensate for less job stability or a lack of benefits. So, for someone who needs a more flexible schedule than a permanent job would permit, Hamersma says temporary work "might be a good fit."

More information about the University of Florida research is available on the university's Web site, ufl.edu.

Staffing Offers Opportunities for Working Mothers

Women now represent the majority of the U.S. work force, according to the U.S. Bureau of Labor Statistics. Millions of these women are mothers who have developed unique skill sets by managing their success at home and at work. Niche staffing firms say that many working mothers make good employment candidates for businesses looking for access to talent and work force flexibility.

"There are a lot of talented mothers out there who have much to contribute to the workplace," said Mommy Wars author Leslie Morgan Steiner during an interview on NBC's the "Today Show."

In that same interview, Allison O'Kelly of Mom Corps added that many mothers come with a robust work history. "These often are women who have worked five, 10, or 15 years in a professional environment and have amazing skills."

"Mothers make fabulous employees because they're bright, they know what they are doing, and they are used to wearing many hats—their ability to multitask is invaluable," said Jill Ater of 10 til 2 LLC, a part-time placement staffing firm. She added that mothers who work on temporary or part-time bases offer businesses expertise on an as-needed basis—something that is favored by companies interested in maintaining work force flexibility as they assess the stability of the current economy.
Mothers value that flexibility too. "The main benefit mothers are looking for when they come to a company like ours is flexibility," added Ater, whose average employee is 43 years old and has children in elementary school. "The reason we started this business is because we are moms. We saw the need for flexible jobs that would allow us time to take care of our children. We get it because we are them."

This Sunday the nation will celebrate these women and all mothers for the contributions they make, at home as well as at work. Happy Mother's Day.

Create a Social Media Policy for Your Firm

Social media Web sites may be excellent platforms for staffing firms and their employees to network with peers and promote their business. Yet problems can result from an employee's improper or unlawful use of a staffing firm's name, reputation, or confidential information while using social media. Joel Klarreich, Esq., and Andrew Singer, Esq., of Tannenbaum Helpern Syracuse & Hirschtritt LLP will discuss the implications of your employees' use of social media during a free ASAPro Webinar for ASA members Tuesday, May 11.

Klarreich says, "Social media presents staffing firms with a virtually unlimited capacity both to reach candidates and employers and to market their services—but not without risk. You already know the potential rewards of social media. We will explain the risks and teach you the best practices to protect your confidential information and limit your liability for the social media activities that have become crucial tools for many successful staffing firms."

Klarreich and Singer will address the legal risks involved in your employees' use of social media and provide policies that your firm may implement during the ASAPro Webinar "Social Media and Web 2.0—New Rules for Today's Workplace," May 11, 3–4 p.m. Eastern time. It's free for ASA members.

For more information and to register, visit americanstaffing.net.

Nominate Your Corporate Social Responsibility Initiative

Does your firm or chapter have a corporate social responsibility success story? You could earn recognition for your CSR program from ASA. The ASA Care Award recognizes outstanding corporate social responsibility initiatives among ASA member companies and affiliated chapters.

ASA defines corporate social responsibility as managing business processes to produce an overall positive effect on society. Corporate social responsibility initiatives can encompass policies, programs, or specific projects within companies and with external partners.

Five national winners will be selected:

• One staffing firm with less than $15 million in annual sales


• One staffing firm with $15 million–$100 million in annual sales


• One staffing firm with more than $100 million in annual sales


• One associate member (a company that provides products or services to the staffing industry)


• One ASA-affiliated chapter

Visit americanstaffing.net to nominate your corporate social responsibility initiative. All submissions are due July 30. Not sure what to include in your electronic submission? Listen to a past award judge tell you what is important to include and how to start your planning.

America's outstanding corporate social responsibility initiatives from the staffing industry will be recognized during Staffing World® 2010, Oct. 12–15 in Las Vegas, and will be featured in ASA publications. For more information, contact Tracy Rettie at 703-253-2028 or trettie@americanstaffing.net.

Benefits Central

Are you struggling to keep up with rising insurance costs? Workers' compensation claims can really eat into a staffing firm's gross margin. But you can manage your firm's costs by managing your risk. The Workers' Compensation Risk Certification (WRC) program recognizes staffing companies that practice best-in-class risk management.

Founded in 2005 by ASA and RCS—a risk management consulting firm and ASA member service provider—the WRC program establishes an industry standard of operational excellence in staffing firm risk management to reduce workplace injuries and related costs.

ASA past chairman Dan Struve, CSP, of Helpmates Staffing Services says, "The WRC program enhances worker safety and lowers the frequency and severity of employee claims. It also helps promote the staffing industry as a responsible employer to the insurance industry."

For more information about the WRC program, call RCS at 800-807-7475 or visit staffingwrcs.com.