Tribe's Staffing Company Shuts Down After California Demands Payment of Bill

Tribe's Staffing Company Shuts Down After California Demands Payment of Bill

ICTMN Staff
4/14/11

The Blue Lake Rancheria tribe's temporary staffing company Mainstay Business Solutions shut down operations April 13 due to an overdue bill to the state of California, reported The Sacramento Bee.

Located in Humboldt County, California, the company, which provides employment to an average of 8,000 workers at hundreds of work sites throughout the state at any given time, shut down when California's Economic Development Department (EED) demanded payment of a bill more than $16.4 million.

Mainstay claims it has paid millions to EDD. While the company challenged the amount of the department's claims, a recent EED letter insisting the firm make its  payments prompted Mainstay's finance partners to pull funding. As a result, Mainstay ceased its operations, reported the Bee.

Mainstay contends its closure will lead to an odd 7,000 jobs going away; however, state officials maintain the jobs will continue at the employees' respective places of work. Mainstay's corporate administration center is located in Folsom, and its regional offices throughout California employ 150 people.

EDD declined to comment to the Bee.

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