Staffing & Workforce Solutions

Client service agreements define the scope of staffing services, billing rates, worker replacement obligations, and liability allocation between the staffing firm and the client. When a client disputes an invoice, terminates the agreement early, or claims that a placed worker caused damages, the contract becomes the entire foundation of the dispute, and weak service agreements expose the staffing firm to significant financial liability.

We draft and review client service agreements that clearly define billing rates, worker replacement obligations, direct hire fee structures, temp-to-perm conversion terms, and liability allocation. Every agreement is reviewed with an eye toward how it performs not just at signing, but when a client disputes an invoice, terminates early, or claims that a placed worker caused damages.

• Client invoice disputes and early termination claims
• Liability allocation gaps when placed workers cause damages
• Missing indemnification and limitation of liability provisions
• Ambiguous worker replacement and service level obligations

Worker classification and co-employment liability are among the most significant legal risks facing staffing businesses. When a placed worker is misclassified as an independent contractor, or when a client is deemed a joint employer, the consequences include back wages, benefits liability, tax exposure, and regulatory penalties that can be significant for businesses with large worker populations.

We help staffing businesses structure their worker relationships correctly, advising on classification status, co-employment exposure, and the contractual protections that reduce joint employer liability. Getting classification right from the beginning is one of the most important legal decisions a staffing business can make as it scales its worker population.

• Independent contractor misclassification exposure
• Joint employer and co-employment liability with clients
• Benefits and tax exposure from classification errors
• Regulatory penalties from state and federal agencies

Staffing businesses depend on their client relationships and candidate databases, and both are vulnerable when a recruiter or account manager leaves to join a competitor or start their own firm. Without enforceable non-compete and non-solicitation agreements, protecting client relationships, candidate pipelines, and proprietary placement systems after a key departure is extremely difficult.

We draft non-compete and non-solicitation agreements for recruiters, account managers, and key staff, and pursue enforcement when those agreements are violated. Protecting client relationships and candidate databases starts with having the right documentation in place before a key employee walks out the door and takes the business with them.

• Recruiters departing to start competing firms
• Account managers taking client relationships to competitors
• Candidate database misappropriation by former employees
• Missing or unenforceable restrictive covenant agreements

Staffing businesses face significant wage and hour compliance obligations as the employer of record for placed workers, including minimum wage requirements, overtime calculations, break requirements, and pay stub obligations. A single wage and hour class action brought by placed workers can create financial exposure that threatens the viability of the staffing operation.

We help staffing businesses meet their wage and hour obligations as employer of record for placed workers, advising on minimum wage compliance, overtime calculations, break requirements, and pay stub obligations. Getting wage and hour compliance right is especially important for staffing businesses where a single class action can create financial exposure that threatens the entire operation.

• Overtime miscalculation and minimum wage violations
• FLSA collective action exposure from placed workers
• Break and rest period compliance gaps
• Pay stub and wage statement deficiencies

Direct hire fee disputes and temp-to-perm conversion disagreements are among the most common contractual disputes in the staffing industry. When a client hires a candidate directly without paying the agreed fee, or disputes a temp-to-perm conversion fee, the service agreement and the course of dealing between the parties both become relevant to the outcome.

We help staffing businesses pursue direct hire fee disputes and temp-to-perm conversion claims, building the documentation record, drafting demand letters, and pursuing legal remedies when clients refuse to pay agreed placement fees. We also help staffing firms put the right fee structures and payment terms in place to prevent these disputes from arising in the first place.

• Clients hiring candidates directly without paying placement fees
• Temp-to-perm conversion fee disputes
• Ambiguous fee structures in service agreements
• Missing tracking and documentation of candidate introductions

Staffing businesses face employment discrimination and harassment exposure from two directions. Claims brought by placed workers against the staffing firm as employer of record, and claims arising from the client's workplace where the worker was placed. Managing this dual exposure requires strong contractual protections with clients and a proactive approach to employment compliance across the worker population.

We defend staffing businesses against employment discrimination and harassment claims, from initial EEOC charge through litigation, and help businesses put the contractual protections and compliance programs in place that reduce this exposure before a claim arises.

• Discrimination claims brought by placed workers against the staffing firm
• Harassment claims arising from the client's workplace
• Missing indemnification provisions in client service agreements
• Inadequate anti-harassment policies across the worker population

Staffing businesses need legal counsel who understands both sides of the relationship. The client contracts that define the engagement and the employment obligations that govern the workers. Pomeranz Law provides practical, business-focused legal counsel that understands how staffing businesses operate and what they need to protect both sides of that equation.

• We understand the dual client-worker legal exposure unique to staffing businesses
• We draft service agreements that protect the firm when clients dispute invoices or claim worker damages
• We pursue non-compete enforcement when recruiters and account managers take client relationships
• Transparent, practical counsel without the overhead of a large firm