Staffing 360 changes capital structure to maintain Nasdaq listing

Staffing 360 Solutions Inc. (NASD: STAF), a staffing provider operating in the US and UK, announced changes to its capital structure as part of an effort to get back in compliance with Nasdaq listing requirements. The company had been notified in April that it did not comply with the minimum $2.5 million net shareholders’ equity requirement for listing. Staffing 360 had until last Friday to get back into compliance.

The changes include the conversion of a $13 million term loan held by the Jackson Investment Group LLC into a newly created class of preferred stock.

According to a filing with the US Securities and Exchange Commission, Staffing 360 closed the debt exchange agreement on Nov. 15 that gives Jackson Investment Group 13,000 shares of the new series E convertible preferred stock.

“Maintaining our Nasdaq compliance has been a key priority for our leadership team,” Chairman and CEO Brendan Flood said. “We are committed to our goal of building a profitable $500 million revenue business and driving the value of our stock for our shareholders. We are grateful to JIG for its continued partnership and belief in our long-term vision and management team.”

Staffing 360 last week reported third-quarter revenue rose 41.7% when including acquisitions but declined in its core businesses.

Online staffing platform Wonolo closes $32 million series C funding round

Online staffing firm Wonolo closed a $32 million series C funding round led by Bain Capital Ventures.

The deal follows a $13 million series B funding round in April, led by Sequoia Capital, and brings Wonolo’s total funding to $60 million.

New investor DAG Ventures and existing investors Sequoia Capital, Base10, AMN Healthcare and Cendana also participated in the latest funding round. Existing investors who are not part of the Series C round include PivotNorth and Tuesday Capital.

Bain Capital Ventures’ Jamison Hill is joining Wonolo’s board of directors as part of the latest deal.

Wonolo will use the financing to grow its staff — both in its two headquarters and in satellite offices nationwide — and continue expanding to new local markets around the US. The company is based in San Francisco but in August opened a second headquarters in Nashville, Tenn., to expand its reach.

“We raised this money sort of opportunistically,” Wonolo’s co-founder and COO AJ Brustein told Staffing Industry Analysts. “Now it is really a time to accelerate our growth.”

The company plans to expand into some new markets and increase its footprint in existing ones. Wonolo will also work to higher more sales and account managers as well as engineers to build out the product.

Wonolo operates in the just-in-time space, enabling clients to use an online marketplace to bring in hourly workers to physical locations. Wonolo workers, known as Wonoloers, take on jobs that include making deliveries, stocking shelves, shipping packages and staffing events.

There are now 300,000 users on Wonolo’s platform; brands using Wonolo include Coca-Cola, Papa Johns and Uniqlo.

Wonolo stands for “Work. Now. Locally.” Northern and Southern California are the company’s largest markets, but it also operates in New York/New Jersey, Chicago, Dallas, Southern Florida, Atlanta and Nashville, Tenn.

LinkedIn closes acquisition of AI-driven employment engagement platform

LinkedIn closed on its acquisition of employment engagement and retention platform Glint. The acquisition extends LinkedIn’s offerings to include visibility into the overall health and productivity of the people within an organization, as well as recruitment strategies.

LinkedIn first announced the deal in October.

Glint was acquired by LinkedIn for a company-reported $400 million, although multiple news entities are reporting the acquisition actually totals more than $500 million, according to Silicon Prarie News. The acquisition occurred earlier in the quarter, and it is the largest acquisition by LinkedIn since its own acquisition by Microsoft for $26.2 billion in late 2016.

Glint is based in Redwood City, Calif., with offices in London, UK, and Lincoln, Neb. The firm has more than 300 customers globally using its enterprise-grade, AI-driven platform. Its client firms include United, Intuit and Commercial Bank of Dubai.

New Bernie Sanders legislation would require $15 minimum wage, or no stock buybacks — includes part-timers and contractors

Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Calif.)  introduced a bill that would prohibit employers with more than 500 employees from buying back stock unless they pay all employees at least $15 an hour — including part-time employees, independent contractors and franchisee employees.

The proposed legislation was named the “Stop Walmart Act.” It would also allow employees to earn up to seven days of paid sick leave to be used to care for themselves or a family member and require that CEO compensation, or the highest-paid employee, is not more than 150 times the median pay of all employees.

Employers who violate the act would be subject to civil fines in the amount of each illegal stock buyback and executive officers will be barred from serving in these roles.

Sanders previously targeted Amazon over its pay before the online retail giant on Nov. 1 increased its minimum wage to $15 for all employees across the US.

In response to the bill, Walmart, in a statement provided to Staffing Industry Analysts, said it promoted more than 230,000 people to jobs of greater responsibility and higher pay, and more than 75% of its store management teams started as hourly associates.

“We have increased our starting wages by more than 50% in the last three years and currently have an average hourly total compensation of more than $17.50 an hour,” the statement said. “At the same time, we’ve also added new benefits like paid time off, advanced job training, paid family leave and college for $1 a day. In addition, our associates continue to earn quarterly cash bonuses — more than $625 million last year alone. We have been very deliberate about our job offerings and we will continue listening to our people and investing in the training, benefits and wages that they tell us are important.”

Sanders’ bill stands a better chance in the Democrat-controlled House than the Republican-controlled Senate, CNN reported.

Disbarred lawyer gets prison for fictional temp scheme (Tulsa World)

A disbarred lawyer was sentenced to federal prison last week in a scheme involving fictional temporary workers, Tulsa World reported. In a plea agreement with prosecutors, Harvey Joseph Stephens admitted to creating fictitious contract employees while working as a human resource manager at Sagebrush Pipeline Co. in Tulsa, Okla. He admitted directing paychecks to be issued from its staffing firm, Task Force Staffing LLC, to two fictitious employees that he created. Stephens was sentenced to serve a 27-month prison term and pay restitution totaling $352,115 to the two companies he defrauded and the IRS.

Silicon Valley wages drop for all except highest-paying jobs (The Mercury News)

Inflation-adjusted wages for employees in the middle of Silicon Valley’s income ladder declined between 12% and 14% over the past 20 years, The (San Jose, Calif.) Mercury News reported. According to a study from UC Santa Cruz’s Everett Program for Technology and Social Change and the labor think tank Working Partnership USA, technology workers saw a median wage increase of 32% over the past 20 years. However, Silicon Valley workers in virtually all other areas lost ground during that time; across all jobs, wages for even the highest-paid 10% increased just under 1%, the study found.