Westaff Franchisees Allege Koosharem Mismanaged Comp Issues

Seventeen franchisees of Westaff allege in a complaint filed with the U.S. District Court for Central California that their parent company used money they paid for workers’ compensation claims to give bonuses to its owners, pay off a $33 million settlement from 2011 for underreporting payroll and backfill some $700,000 that a former executive is accused of embezzling.Santa Barbara-based Koosharem LLC, the parent company of Select Staffing, acquired Westaff Inc. of Walnut Creek in 2009 for $10.3 million. Prior to the acquisition, Westaff would contract with clients needing temporary worke...