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How To Start Your Own Staffing Company Without Worrying About Compliance

Staffing Franchise

Any staffing company needs to be compliant to three parties: the client, the workers seeking jobs, and last but not least, the staffing firm’s own business needs. While some compliance issues are longstanding, others are more pressing. And once the compliance requirements are fulfilled, there are a slew of insurances like Commercial General Liability, Worker’s Comp Insurance, Comprehensive Crime/Employee Dishonesty Insurance, Professional Liability, that one needs to worry about.

All in all, it is no secret that the staffing business requires high cash flow and needs to adhere to multiple state and federal compliances. And rightly so, as the staffing company is dealing with people’s career and life.

To get a better understanding, here are some common compliance and issues staffing companies need to be extra careful about:

Misclassifications of Employees

Employee misclassification is the practice of labeling workers as independent contractors, rather than employees. Many companies practice this because of the reduced responsibilities and tax obligations that pertain to this category of workers.

Compliance with Labor Laws

The staffing agency needs to be compliant with the ever changing National Labor Relations Act (NLRA), the Fair Labor Standards Act (FLSA), worker’s comp and other employment laws such as the Occupational Safety and Health Act (OSH Act).

Compliance with Federal & State Laws

There are instances where federal and state laws differ ever so subtly. A staffing agency needs to be on the forefront on any such modifications or discrepancies. Something as simple as minimum wage varies on the state and federal levels.

Employee Contracts & NDAs

Since the staffing agency is dealing with different types of employment categories, it must be aware of the contractual requirements of any and all such fields. This is critical in order to safeguard against any dispute or lawsuits which may arise.

However, there is a way one can start their own staffing company without worrying about these compliances, Franchise! A staffing franchise allows you to run the company by leveraging the compliances and insurances of the parent company, which issues the franchising licence. Although there are a few such franchise issuing companies in the American market at this moment in time, there is none that makes starting a staffing agency possible for as little as $1000 dollars, none other than Aptask. It provides full operation, back office, funding and recruitment support. One can also use the franchise calculator to estimate their staffing company’s earning potential. If you or anyone you know is planning to start a staffing company, the franchise calculator tool is must try to make revenue estimate.