Newsletter Signup

New Guidance on Joint Employment Explains Employer Responsibilities in Fissured Workplaces

Friday, February 5, 2016

Department of Labor - Joint employment exists when a person is employed by two or more employers such that the employers are responsible, both individually and jointly, for compliance with a statute.

The Fair Labor Standards Act (1938) and the Migrant and Seasonal Agricultural Worker Protection Act (1983) share the same definition of employment. This definition, which includes “to suffer or permit to work,” was written to have as broad an application as possible. Under these laws, it is possible for a worker to be jointly employed by two or more employers who are both responsible, simultaneously, for compliance. It is a longstanding principle under both the FLSA and MSPA that an employee can have two or more employers for the work that he or she is performing.

On January 20, 2016, the Wage and Hour Division released an Administrator’s Interpretation concerning joint employment under the Fair Labor Standards Act and Migrant and Seasonal Agricultural Worker Protection Act. The interpretation identifies common scenarios in which two or more employers jointly employ an employee and are thus jointly liable for compliance. It pulls together all the relevant authorities – statutory provisions, regulations, and case law – to provide comprehensive guidance on joint employment under FLSA and MSPA so that employers can properly analyze a potential joint employment scenario.

To access additional Information, go here

There is also a DOL blog post outlining the topic and providing information on how this guidane maybe useful in different employment situations.  The blog post outlines:

  • What is joint employment
  • Is the frequency of joint employment situations increasing?
  • Guidance to employers
  • Upholding a fair day's pay for a fair days work?
Articles
denotes original PSARA content