McNamee Hosea News & Press


Guidance Addresses "Joint Employment" In Temp Worker Situations

Where virtually all successful businesses are concerned, a qualified workforce is a necessity. Depending on the nature of the business it is possible that a company could use a variety of approaches to secure the necessary workforce. One approach used by some businesses throughout the United States is temporary or contract workers. 

There are multiple reasons why this approach is popular with so many employers including the fact they do not have to provide employee benefits or be responsible for labor violations in conjunction with those workers. Types of companies that often opt for this type of workforce include restaurant chains and construction firms.

Recently, the U.S. Labor Department published a guidance that could remove some of those benefits for companies that opt for this type of employment. The guidance indicated that in some situations businesses that use workers employed by a contractor or staffing agency might be classified as “joint employers.” In turn, this could make the companies responsible for matters they previously were not, such as ensuring a temporary employee or contractor receives minimum wage.
Specifically, the guidance contained information regarding the analysis of joint employment in horizontal and vertical arrangements. An arrangement is considered to be horizontal are when two related companies employ a worker. Vertical, exist when a contract between two companies leads to the employment.
Matters of this nature can be complicated and difficult to understand. In addition, laws pertaining to employment matters often change at a rapid pace. Because of this, most companies would benefit from working with an employment attorney to help explain these issues.