6 Common Staffing Firm Compliance Issues to Minimize

Staffing agencies have to meet a wide number of compliance expectations from both state and federal governments. They have to be sure candidates and employers are in following the law. Neglecting to address these problems can have serious implications for your staffing agency. Make sure that your firm is protecting itself from these common compliance issues.

Make Sure to Minimize These Common Compliance Issues

Staffing Compliance With OSHA

As a staffing agency, you have a number of OSHA requirements you have to meet in order to do business. In 2013, laws were passed that make the employer and staffing firm responsible for employees, to an extent.

Of course, staffing agencies have always had the responsibility of ensuring the safety of employees (i.e. not sending them to jobs where they will get hurt). In some cases, staffing firms and employers have been sued because the employee did not receive proper training or didn’t have the proper work history. With further OSHA regulations, agencies have to protect themselves. Checking job sites, getting to know employers better, providing training, and signing agreements that ensure all parties are aware of their specific responsibilities.

Tax Compliance

No one wants trouble with OSHA or the IRS. The next most common compliance problem facing staffing agencies is taxes. Staffing companies work across multiple jurisdictions a lot of the time, especially with today’s remote workforce. You often have to meet federal, state, county, and local tax requirements.

Discrimination and Harassment

Another compliance issue staffing agencies need to be aware of is related to discrimination and harassment. A lot of the time, the problem with discrimination and harassment doesn’t occur within your agency but with the employer. For this reason, it is a good idea to get to know your clients well and double-check they are meeting compliance standards with their practices. You should also avoid doing business with companies that ask you to not send certain people protected by discrimination laws to be interviewed. The laws include discrimination based on race, color, religion, sex, and nationality.

The Affordable Care Act

Companies of 50 or more still have to adhere to the Affordable Care Act manadates. If your staffing company does not offer the ACA minimum coverage or what is provided isn’t affordable, your organization can be fined more than $187,000 annually. Be sure every qualified employee has access to ACA-compliant coverage.

The Family Medical Leave Act

The Family Medical Leave Act (FMLA) requires employers to give their staff up to 12 weeks of unpaid time off each year. This only covers leave due to serious health concerns, childbirth or new adoption, care for a parent/spouse with a serious condition, or any family leave needed relating to a member of the family in the armed forces.


Almost every employer uses e-verify to help them confirm a candidate’s legal working status in the United States. The amount of computing power it takes to check databases and ensure each candidate is eligible to work in the U.S. is astronomical. However, many software companies have gone to work to ensure things like this take little-to-no time. Many companies, including Essium, have integrated e-verify into our process so that it only takes a single click.

Learn How Essium’s Technology Can Help You Minimize Compliance Issues

Essium’s technology can help staffing agencies minimize compliance issues by automating your processes. Let us help your firm. Contact us to learn more about how our systems can assist you in minimizing compliance problems in your company.