How Trump’s New Co-Employment Law Affects Staffing Firms

By now, chances are you’ve heard about Trump’s new wage-theft laws. You might be concerned and wondering how they will affect you and if you will have to take any new steps to protect you from co-employment scenarios. Today, Foxhire is going to take a quick look to make sure you feel confident and informed. 

The Basics

Recently, Trump loosened the federal government’s “joint employer” law. In short, this means that victims of wage theft at staffing agencies and subcontractors have a harder time getting compensated should violations of pay.

It overturned an Obama era law that broadened worker’s rights. In addition, to staffing agencies and subcontractors – franchises are no longer responsible for the working conditions of their franchises. 

The California Exemption

These new rules will effectively change laws in 49 of the 50 states. However, nothing will change in California. The Golden State won’t be affected as they already have more restrictive laws in place to further protect working conditions and payment for freelancers, contract workers, and more. 

Effects for Staffing Firms

In theory, most staffing firms won’t take notice of the new rules. Rather, business as usual will take place. That’s because most staffing firms were already following the law. Now that the law is more relaxed, there’s even less chance of something going wrong. 

“Bad” Eggs

That said, there are a few companies that will notice. For example, staffing companies that weren’t paying their workers appropriately, or franchises that weren’t making sure their locations were completely safe. While they might have been a lawsuit or fine before, now there won’t be.

What We Recommend

While this law was applauded by businesses across the US, it was strongly opposed by workers and worker’s rights organizations. As such, it’s important to make sure your temporary workers are paid legally and as close to or above the cost of living as possible. While not a legal requirement, it’s something that will ensure your workers stay around and recommend you to others. 

In addition, make sure the businesses you work with are keeping their workers safe. If you begin working with businesses that treat temporary workers badly, your workers will refuse jobs, costing you money.  

Finally, keep in mind nothing has changed in California. In fact, that state already has stricter laws that should be followed by anyone who’s working in the state. If you’re not, then you risk getting sued or fined. Neither of which a business wants.