Staffing Compliance 101: Employer of Record, Classification & US Labor Laws Explained
Staying compliant in US staffing isn’t optional—it protects you from fines, lawsuits, and operational shutdowns. Here’s a fast, clear breakdown to keep your staffing function airtight in 2025.
1. Employer of Record (EOR): What It Actually Does
An EOR legally becomes the employer for your workers—managing payroll, taxes, I-9, onboarding, benefits, workers’ comp, and compliance filings.
For staffing firms, this reduces liability and removes administrative burden so you can scale faster.
Curiohire provides end-to-end EOR support for US staffing and RPO teams.
2. Worker Classification: W-2 vs 1099 Still Causes Most Penalties
Misclassification is one of the top audited violations in staffing.
Here’s the rule of thumb:
- W-2 employee → You control how, when, and where work is done
- 1099 contractor → Independent, controls their own tools, hours, and delivery
Wrong classification = heavy back taxes + penalties. Curiohire ensures classification compliance for every hire.
3. US Labor Laws You Must Follow
Key laws all staffing companies must comply with:
- FLSA – minimum wage, overtime, recordkeeping
- OSHA – worker safety standards
- EEOC – anti-discrimination compliance
- IRCA – I-9 & employment eligibility
- State labor laws – wage orders, overtime rules, PTO, pay frequency, contractor laws (ex: CA AB5)
Curiohire helps clients stay compliant across all 50 states with real-time updates and audit-ready processes.
4. Why Compliance Matters for Staffing Firms
- Avoid IRS & DOL penalties
- Reduce co-employment risk
- Improve client credibility
- Build a compliant, scalable hiring engine
If you want hands-off US staffing compliance, Curiohire handles the entire lifecycle—EOR, onboarding, audits, documentation, payroll, and reporting.
Want to stay 100% compliant in 2025?
Book a strategy call: https://calendly.com/recruiter7812/30min
Visit: www.curiohire.com
Email: recruiter7812@gmail.com
LinkedIn: https://www.linkedin.com/company/curiohire
