With more than three million temporary and contract employees working for America’s staffing companies, demand for other-than-permanent workers continues to stay strong.
One goal for many staffing firms involves multi-state expansion. Having a presence in more than one state acts as a buffer against a slowdown in one location; and it enhances the firm’s image, helping it pitch to large companies with multistate operations.
But staffing firms as well as all businesses that expand across state borders need to multitask, and consider issues like whether they need to register with each state in which they’re active.
In July 2015, international staffing services company Insight Global LLC sued competitor Collabera Inc. in New Jersey Superior Court. Global alleged that Collabera induced at least 12 former employees of the plaintiff to leave Global and work for Collabera in violation of their employment agreements.
It turned out that at the time Global filed the complaint against Collabera, the plaintiff firm was NOT registered or licensed to do business in New Jersey, as was required under the Private Employment Agency Act, or PEAA.
How did the NJ Court rule? And what are the ramifications? Click here :