Good news for a change! The productivity of the US workforce in Q3, 2007 rose at the strongest pace in four years. The Department of Labor reported that hourly output per worker increased at a 4.9% annual rate, more than double the 2.2% figure reported for Q2, 2007. Many economists see this as a signal of economic growth.
The recent case involving a staffing company being sued by the state of California highlights an important issue for both staffing companies and employers. The firm was accused of exploiting a loop hole in state labor law to avoid having to pay Workers’ Compensation insurance. Attorney General Jerry Brown called this another example of “the underground economy.”
The ‘undergound economy’ doesn’t just relate to not paying Workers’ Compensation insurance. It involves hiring workers who don’t have the legal right to work in the United States. It also includes avoiding minimum worker and workplace safety requirements.
Rainmaker Staffing is proud of our stance on these issues. We undertake an 11-step screening process that ensures we only hire legal workers. We demand safe working conditions for our employees and have even achieved Workers’ Compensation and Risk Certification (WRC, pronounced “work”), recognition of our ability to operate at the highest levels in regards to safety and risk management.
This underground economy drives down wages, creates harsh working conditions, and undercuts legitimate businesses. Rainmaker Staffing refuses to be part of it.