Recruiting, Outsourcing, and Staffing Companies

How We Support Recruiting, Outsourcing & Staffing Companies

Talent-driven businesses, whether recruiting firms, staffing agencies, or outsourced service providers, operate in one of the most legally complex and rapidly evolving industries in California. These companies sit at the intersection of employment law, contract negotiation, and client service, often managing relationships with both candidates and clients while bearing varying degrees of employment risk. We advise executive search firms, temporary staffing agencies, and outsourced service firms on how to build legally sound operations that scale efficiently and comply with state and federal employment laws.

What We Help Recruiting & Staffing Companies Accomplish

Business Formation & Structuring for Liability Management

Staffing and recruiting firms face unique liability concerns, including co-employment, wage and hour claims, and contractor misclassification. We help founders and investors select and form the appropriate LLC or corporate entity, and structure ownership and internal governance to balance operational control, liability protection, and regulatory compliance. For multi-entity organizations, such as agencies with distinct legal entities for placement, payroll, or on-site management, we help build parent-subsidiary structures that align with your business model while reducing legal exposure.

Client & Candidate Agreements

At the core of every recruiting or staffing business are its contracts with both clients and candidates. We draft and negotiate client service agreements, master service agreements (MSAs), placement contracts, contingent and retained search agreements, and independent contractor agreements that clearly define roles, responsibilities, payment terms, conversion fees, indemnities, and risk allocation. We also advise on restrictive covenants, no-poach clauses, and confidentiality terms, tailored to California’s evolving public policy landscape regarding employee mobility and non-competes.

Worker Classification & Employment Law Compliance

California’s employment laws, especially under AB 5 and Dynamex, have reshaped how staffing companies can classify workers. We help you navigate the employee versus independent contractor analysis, including developing compliant worker relationships, reviewing compensation models, and mitigating the risk of misclassification claims. We also advise on joint employer risks, support co-employment compliance, and develop legally compliant employee handbooks, offer letters, and internal policies to manage both internal staff and deployed workers.

Intellectual Property & Trade Secrets

Your business’s value lies not just in its people, but in its data, including candidate lists, sourcing methods, client relationships, and proprietary processes. We help you protect trade secrets and intellectual property through enforceable confidentiality agreements, contractor and employee IP assignment clauses, and data security policies. If your firm leverages proprietary software, assessment tools, or databases, we also help structure licensing agreements and SaaS terms to ensure legal clarity and ownership.

Vendor & Back-Office Agreements

Outsourced service providers often rely on third-party vendors for background checks, payroll, onboarding, and compliance. We draft and review vendor agreements, subcontractor arrangements, and technology contracts, ensuring proper flow-down of responsibilities, data protection, and indemnification terms. We also advise on white-labeled services, offshore arrangements, and platform partnerships, helping you maintain operational integrity and compliance.

Mergers, Acquisitions & Exit Planning

As staffing and recruiting firms grow, many look to expand through acquisition or prepare for sale. We represent companies in M&A transactions, including asset sales, stock sales, and roll-ups, handling everything from deal structuring and due diligence to employment transition planning and client assignment issues. We also help build internal succession strategies and equity structures that prepare founders and early stakeholders for exit.

Who We’ve Helped

We’ve worked with executive search firms, temporary staffing agencies, medical and legal placement firms, outsourced operations providers, and tech-enabled staffing platforms. Our clients range from lean boutique agencies to multi-entity organizations managing hundreds of placements across multiple states. We’ve assisted with contract negotiation, employment audits, business formation, M&A deals, internal restructurings, and employment disputes, always with a focus on industry-specific risks and operational realities.

A Legal Partner That Understands the Business of Talent

You operate in a dynamic, people-first industry that demands flexibility, speed, and precision. We provide practical, business-focused legal support to help recruiting, staffing, and outsourcing firms manage their legal risk while staying focused on growth and client success. Whether you are placing executives, deploying teams, or scaling an on-demand workforce model, we help you build a strong legal foundation that supports sustainable growth.