DOL Issues Joint Employer Guidance

Monday, February 8, 2016

In guidance issued last week by the Department of Labor (DOL) on the joint employer standard, more companies could be classified as joint employers of workers employed by a staffing agency or contractor and held liable for labor violations tied to those staff. The 15-page interpretation by DOL explains how to analyze joint employment in “vertical” arrangements, when one company contracts with another company, and “horizontal” arrangements, when one worker is employed by two related companies. While non-binding, the guidance could play a significant role in class action litigation for unpaid overtime and other labor violations.

NLBMDA 2/8/2016

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