Court Says Staffing Agency Recruiters, Managers Are Exempt Workers

Reaffirming that staffing agency recruiters and managers are administrative employees under the Fair Labor Standards Act, a Michigan federal court ruled that Randstad doesn’t have to pay overtime to a group of staffers who brought a class action case against the global firm.

Specifically, the court said account managers, senior account managers, assistant branch managers, staffing consultants, and senior staffing consultants were exempt from the overtime provisions of the FLSA.

While the courts have found recruiters and those doing similar work to be exempt employees, in this case the Randstad employees said they were misclassified because their duties did not include the “exercise of discretion and independent judgment with respect to matters of significance” required by the FLSA.

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Although paid a base ranging from $32,000 to $48,125 plus commissions and bonuses., they claimed, they were “micromanaged” and constrained in how they performed their job by Randstad’s Work Planning Index.

The court found, however, that the WPI was merely a spreadsheet method of tracking the completion of tasks. “The record is clear,” the court ruled, “that they performed inherently discretionary tasks, such as finding the candidates who are the ‘best fit’ for the client and resolving issues when candidates did not perform as expected.”

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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2 Comments on “Court Says Staffing Agency Recruiters, Managers Are Exempt Workers

  1. Employees should be aware of their status at time of hire. There shouldn’t be any confusion. If an employee isn’t happy with the status, they can re-consider taking a position.

  2. Employees should be aware of their status at time of hire. There shouldn’t be any confusion. If an employee isn’t happy with the status, they can re-consider taking a position.

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