Temp Agency Run by Blue Lake Rancheria Shuts Down

update may 12 contact info for former mainstay employees with workers comp claims:  https://highboldtage.wordpress.com/2011/05/12/california-self-insurers-security-fund-statement-on-mainstay-business-solutions/
 
 
update may 11   “888-888-TEMP is owned by the Blue Lake Rancheria Tribe (www.bluelakerancheria-nsn.gov).  After building Mainstay Business Solutions (www.mainstayca.com) into a successful temporary staffing firm, management realized that temporary at-home project help was not available to the public in an easily accessible way.  They decided to fix that, and in 2009 they launched 888-888-TEMP, and now people can get safe, skilled help around the house and yard when they need it, affordably.”

http://888-888-temp.com/about/888TEMP.php

 
 
update may 11 non profit registered in washington state last year:
 
 
update may 7 Former Mainstay Employees Claim Wages Debited from Bank Accounts
 
 
 
update april 22 It looks like mainstay had “transistioned” some clients to Select Staffing as early as April 4, according to this post on staffingindustry.com.  http://www.staffingindustry.com/site/Research-Publications/Daily-News/Select-Taking-on-Mainstay-s-Commercial-Business  here is a link to it on google cache:
 
 
“Select Staffing is taking on the commercial business of Mainstay Business Solutions, the California temporary staffing company that ceased operations Tuesday.In a letter to Mainstay clients, Select Staffing, based in Santa Barbara, Calif., said it transitioned client accounts effective April 4. Existing phone numbers will forward to Select offices, and many Mainstay representatives will stay on their accounts, according to the letter.”
 
 
background:
 
 
 
UPDATE:  THE MAINSTAY BUSINESS SOLUTIONS WEBSITE NOW REDIRECTS TO “SELECT STAFFING” BUT THE GOOGLE CACHE CLEARLY SHOWS THAT HAPPENED YESTERDAY.
 
THIS REALLY LOOKS SHADY TO ME.  IT WOULD TAKE AN INSIDER TO CHANGE THE WEBSITE.  ARE BACKDOOR DEALS BEING MADE RIGHT NOW?  HAVE MAINSTAYS “EMPLOYEES” BEEN SOLD OFF TO ANOTHER COMPANY AND IF SO WHAT DOES THAT IMPLY ABOUT THEIR STATUS?  WHAT KIND OF HUMAN CAN BE BOUGHT AND SOLD?  JUST ASKIN’
Mainstay Business Solutions, the temporary staffing company operated by a Humboldt County Indian tribe, said it has shut down operations.

Mainstay said it had no choice but to cease operations as California’s Economic Development Department pressed for payment of a bill of more than $16.4 million.

http://www.sacbee.com/2011/04/13/3550153/folsom

“Mainstay learned of the levy on Monday, spokeswoman Jana Ganion said.”

“We made it very clear to the EDD that if they issued a levy, we would be forced to close immediately,” Eric Ramos, Mainstay’s chief executive officer said in a statement Wednesday. “We were not bluffing. There was no imminent reason for this action, but because of it, thousands more Californians are suddenly and needlessly out of work today.”

http://www.bizjournals.com/sacramento/news/2011/04/13/staffing-firm-in-showdown-with-state.html

“When it formed in 2003, Mainstay, citing its status as a tribal government with sovereign immunity, claimed that its non-tribal business clients didn’t have to pay state-approved workers’ compensation insurance. Mainstay said it hired the workers and leased them to the firms.

Regulators countered that if the non-tribal firms working with Mainstay hired workers directly, they would have to follow state and federal laws that apply to private profit-making businesses.

For a time, franchises of the International House of Pancakes in the Central Valley put their workers on Mainstay’s payroll, and neither IHOP nor Mainstay had state-approved workers’ compensation insurance for on-the-job injuries.”

 http://www.sacbee.com/2011/04/13/3548435/mainstay.html#ixzz1JS13kmaw

“Before we joined Mainstay Business Solutions it was nearly impossible for us to keep our heads above water financially…with the already inflated workers’ compensation rates…and trying to provide affordable benefits for our employees.  Mainstay…gave us the perfect solution.  We are more than satisfied with the way Mainstay Business Solutions’ friendly staff handles our payroll and workers’ compensation needs…and a more affordable way to run our business.”    

-Twin Pines Healthcare

 “…I can not express how delighted I have been since signing on.  The sheer volume of hours saved alone on payroll processing is immeasurable.  No more tax forms, no more workers’ comp, no more EDD.  I’m thrilled.  Your company’s handling of our [workers’ compensation] claim was superior to anything I’ve seen in years.”  

– JGJ Care Centers, Inc.

“[We have] been a customer of Mainstay Business Solutions for 3 years.  …  The staff is professional in all aspects of employee relations.  With the high cost of workers’ comp insurance, especially in California, it actually saves us money….With all the demands of running a business, having Mainstay to take care of the employee issues is invaluable.”  

– R.L. Schafer Co.

“We have been customers / employees of Mainstay for approximately 2 years.  I have been employed at the same site for over 21 years.  We have had several different employers and payroll processors over those years.  I am very pleased to say that in all areas involved Mainstay has been the best….”

-Raycott Heathcare Management Group, LLC

“I don’t want to spend my time worrying about government reporting forms for my employees or all the tedious HR paperwork….Mainstay…take[s] care of all of this for me so I can concentrate on my business of helping companies use our new E-Learning System to increase performance….The benefits team is on the ball…Payroll is done, and done correctly!  I really enjoy working with everyone at Mainstay and I want to thank you for everything you have done….”

-BrainX

 “The difficulties in operating a business in California are well-known…the cost of workers’ compensation insurance alone can be staggering and be the cause of a company to relocate out of state or even close down….becoming a client of Mainstay…has literally meant our ability to continue operations.”  

-Tri-Star Plastics

“Systechs has been a Mainstay customer for 2 ½ years.  Throughout this time we have received perfect service….payroll has been on time and accurate every time.  Our employees love that.  The Benefits Team provides different plans for our employees to choose from and all enrollments are reported on time.  I would like to thank everyone at Mainstay for their team effort and for making my job easier….”  

-Systechs

“As we approach our second anniversary with Mainstay…I would like to commend you for the outstanding service you provide.  Everything from new hire paperwork, to workers’ comp claims to terminations to unemployment issues are made much easier by those professionals who assist in making sure everything is completed properly.  Thank you for allowing me to effectively and resourcefully manage over 275 employees every day.”  

-Legacy Healthcare, Inc.

 “…Mainstay has provided our employees with an excellent benefit package, with much broader options than we…could provide.  The…rate we receive is very competitive, and has enabled us to lower the costs for our customers.”  

-Dick James & Associates

“We can highly recommend Mainstay Business Solutions to anyone seeking a top-notch payroll company….excellent service and professionalism….” 

-Los Angeles Poultry Co, Inc.

Mainstay Business Solutions has provided exceptional service…for the last two years.  They saved us from spiraling workers’ compensation rates at a time when we seriously considered discontinuing our residential construction business.” 

-Ridge Realty, Inc.

“Your accuracy and efficiency are great.  …we were in quite a bind…experiencing horrendous cost increases…Mainstay proposed a workable, cost-effective solution that made sense….We have been…partners ever since.” 

-Spede Tool Manufacturing Co
the above is from the Blue Lake Rancheria website, though it has been deleted.  Here is the Google cache:
from Mainstay’s website:
It is with unlimited shock and regret we must inform you:

April 13, 2011: 

As a result of unnecessary levy issued by the California Employment Development Department (EDD),

Mainstay is forced to cease operations immediately.

Clients:    We are working around the clock to provide transition service support. We are investigating transition options and will be contacting you shortly. We will help ensure secure data transfer and reduce disruption to the largest extent possible. There was no choice here, but ceasing operations does help limit redundant payroll or tax payments, which could pose a significant hardship. 

Employees:    If you have received notice of layoff, we urge you to apply for unemployment benefits immediately at: 

If you have not received a layoff notice, we will be contacting you shortly with next steps.  We are working on transition options, which may limit disruption to your employment.  We need you to know, so you can make decisions for you and your families:  EDD action has impacted our ability to fulfill some obligations, including final checks.  But we are doing everything to ensure people are paid properly and on time and we will provide you with as much assistance as we can. We have requested the EDD facilitate rapid unemployment claims processing, but we have no faith that will occur.

http://www.mainstaybusiness.com/

from the Northcoast Journal:

“In 2003, the Journal reported on the business practices of Mainstay Business Solutions, a staffing company and tribal entity of the Blue Lake Rancheria that was operating outside of California’s workers compensation laws.As a business entity of a sovereign nation, Mainstay Business Solutions was able, for a time, to avoid California’s workers’ comp premiums, which are some of the highest in the nation. But as soon as state regulators realized what was going on, they tried to put a stop to it. As a result of the state’s complaints, Mainstay was forced to buy traditional workers’ comp coverage from an insurance provider in the state of Washington, which caused their revenue to plummet from $300 million to $120 million, according to a report in Business Insurance.

In late 2003, Mainstay sued the Department of Insurance and the Department of Industrial Relations in order to get them to stop interfering with its operations. Mainstay and the Department of Industrial Relations finally settled out of court in 2005, with Mainstay agreeing to pay a $20 million deposit — mostly in cash, according to a report in the Sacramento Business Journal to self-insure, as well as wave its rights to sovereign immunity. (As for the Department of Insurance, Mainstay dropped its suit against them.)”

http://www.northcoastjournal.com/011708/cover0117.html and also the 2003 article:

http://www.northcoastjournal.com/121803/cover1218.html

MARCH MIXER – BLUE LAKE CASINO
Thursday, March 17, 2011 5:30 to 7:00 PM

The March Chamber Mixer is hosted by the Blue Lake Casino and Co-hosted by Mainstay Business Solutions.  This festive St. Patrick’s Day event takes place in the Sapphire Palace and features Seaboury Gould performing traditional Irish music.  Eligible members will receive $20 in Casino ‘Blue Bucks’.  The business card drawing includes a Grand Prize steelhead river fishing trip with Mike Coopman’s Guide Service.  Chamber members and their guests are invited to enjoy a festive evening of food and fun. This is a 21 and over event.

http://eurekachamber.com/march-chamber-updates-0

“I understand Mainstay Business Solutions will manage my payroll, benefits administration and other areas. Since Mainstay Business Solutions is a tribally owned staffing company, it is a sovereign entity, which means that not all state and federal laws regarding employment are necessarily applicable. I am under no obligation to accept employment on these, or any other terms; and I am free to further investigate my rights, and any applicable laws at my own expense and on my own time. I understand, however, that recognition and acceptance of the sovereign status of Mainstay Business Solutions is essential to my employment, and no services may be performed, and no wages paid unless and until I have indicated my understanding of and agreement to the foregoing matters by signing below. As an employee of Mainstay Business Solutions, wholly owned by the Blue Lake Indian Tribe, I consent to the exclusive jurisdiction of the Tribe’s Dispute Resolution Process (DRP) and the Tribal Court for any and all disputes in connection with my employment with the Tribe. I also consent to the application of the Tribe’s Law, both substantive and procedural regarding any and all proceedings, and all matters relating to my employment relationship with the Tribe. Mainstay is authorized to provide relevant information to companies to which I am assigned.”

http://urlet.com/announcement.downward

http://www.google.com/url?sa=t&source=web&cd=20&ved=0CFIQFjAJOAo&url=http%3A%2F%2Fpclstaff.com%2Fsitebuildercontent%2Fsitebuilderfiles%2Fmainstay_employee_application.pdf&ei=SUymTfuPAYm3tweU-8iFAQ&usg=AFQjCNHfr3vnpXyuZjejXEZ6rIs6nqlS6Q&sig2=PYMRwFnYZmbnkGrNpaPr7w

Mainstay Business Solutions Staffing in Folsom, CA:   (Past Employee – 2009)

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Pros

the benefits are good and salaries a fine.

Cons

Everything here is a downside. The management is a joke and they do no think for themselves. It is one giant playground with only a few people working and the rest playing grabass all day long. If you want to screw around and act like a child all while providing a poor product to your customer this is the place for you. Oh I forgot about the constant backstabbing because the people are so worried they will lose their job to someone who is more talented that they will screw you in a heartbeat.

Advice to Senior Management

Think for yourself and don’t let fun get in the way of work. Your “culture” sucks and so does your decision making.”

http://www.glassdoor.com/Reviews/Mainstay-Business-Solutions-Reviews-E217567.htm

HERE IS LOCAL MEDIA REPORTING:  SINCE BLUE LAKE RANCHERIA IS A BIG ADVERTISER IN THE LOCAL HUMBOLDT MARKET IN PRINT, TV AND RADIO IT WILL BE INTERESTING TO SEE HOW THE STORY IS HANDLED.

TIMES STANDARDS FIRST TAKE:

http://www.times-standard.com/business/ci_17843095

UPDATE:  There is a bizarre connection to an Australian company, there is a press release below.  However, visiting the website there is no mention of Blue Lake Rancheria.  I don’t know what to think.  My first impression is that the press release is intentionally conflating two different companies.

presser: http://www.pressabout.com/mainstay-business-solutions-proffers-147320/

http://www.mainstaybusiness.com.au/

“Mainstay Business Solutions is a business venture by the Blue Lake  Rancheria. The fact that they are completely insured for Worker’s Compensation and proffer reimbursement employment for the problem named unemployment. Mainstay Business Solutions has also received their certificate of consent to self-insure by the California Department of Industrial Relations. Their unique and fail-safe approach towards risk management of all their services has earned them an unbeatable reputation in this niche industry segment.

Many a people wonder as to how they are able to cut down costs and proffer quality services at the same time. The answer is they leverage their Self Insurance for Workers’ Compensation. Some of their preeminent traits encompass closing claims, increasing employee retention, preventing fraud and finding service for displaced workers. Customer Loyalty is much prioritized at Mainstay Business Solutions which when augmented with alliancing produces stupendous results in terms of quality product services. They aptly comprehend that needs and requirements vary from client to client, which is why they proffer custom tailored and uniquely premeditated solutions.”

***************

more:

http://www.allbusiness.com/government/employment-regulations/136233-1.html

and:

“But now we come to 2010. This time Mainstay is trying to claim that it and by extension its non-tribal clients shouldn’t have to pay federal and state unemployment insurance taxes like other private firms. It wants to be treated like a government.

Fortunately, the U.S. District Court for the Northern District of California ruled against the tribe in January, saying that this would “allow non-tribal employers to easily obtain the tax advantages that Congress has created for tribal bodies.” The court concluded that allowing such a practice would “create a theoretically limitless potential for abuse.””

http://www.standupca.org/tribes/Blue%20Lake%20Rancheria/editorial-tribes-gambit-hurts-workers

via Forbes April 15 2011:

“The trusts operated like any self-insurance plan, with an independent administrator processing claims and purchasing excess insurance to cover losses beyond what the members had agreed to cover themselves. The biggest administrator was an outfit called CRM, now owned by Majestic Capital of Bermuda.

According to a forensic report completed for the New York Workers’ Comp Board in December, CRM managed eight of about 45 self-insurance trusts but accounted for at least 75% of the $500 million in losses that have been identified so far. Officials at Majestic, which has delayed the release of financial statements in anticipation of being declared insolvent by California authorities, declined comment.”

http://blogs.forbes.com/danielfisher/2011/04/15/new-york-comp-funds-meltdown-a-financial-fukushima/

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