Joint Employment Rules Vary by Agency: Different Tests Explained

Companies that use contract labor or franchise their brands have been navigating continuing policy pendulum swings on the issue of joint employment, leaving the regulated community and workers with a complicated roadmap to determine legal responsibilities in working relationships.

The issue of joint employment status ranks as one of the most contentious in the labor landscape over the past decade, because a joint employment finding could put businesses on the hook for violations of various labor laws committed by a subcontractor or franchisee, including paying back wages or meeting with representatives of a subcontractors’ union.

Federal regulators have flip-flopped on ...