To paraphrase Lewis Carroll, ‘All are equal but some are more equal’! Among other things, this applies to the employment laws promulgated by certain states when compared to the rest.
Unemployment rates, upcoming elections and other considerations impel states to pass more and more laws to control different aspects of employment and worker relations. When determining where to open or close offices, most companies consider each state’s position on employment tax rates, lay-offs, unions, insurance, and other factors affecting permanent workers. Staffing agencies, whose business is based on providing temporary workers to other companies, face additional challenges that require a strong understanding of state-specific regulations.
When staffing companies expand their businesses to new locations, or take on clients with a broad national footprint, the risk could be very high if they assume that the same processes and business policies can be enacted at all locations.
Let us look at some aspects of workforce sourcing and management which are impacted by laws which are specific to only a few states (in an indicative, though not exhaustive) list:
There is little doubt that such unique rules render managing a staffing agency, with the business spread across different locations, tantamount to navigating a minefield – with similar attendant risks.
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