The final rule uses a four-factor that is modeled after the seminal Ninth Circuit case, Bonnette v. California Health & Welfare Agency, and considers whether the potential joint employer:
- hires or fires the employee;
- supervises and controls the employee’s work schedule or conditions of employment to a substantial degree;
- determines the employee’s rate and method of payment; and
- maintains the employee’s employment records.
Employers will benefit from the Department’s attempts to provide for greater certainty. Most notably, the Department will only use the murky “economic realities” test or consider the economic dependence between two potential joint employers in the situation in which two employers rely on the same employee to perform a set hours of work for each employer during the same workweek. It also clarifies that certain long-accepted business models do not make it any more or less likely for a potential joint employer to fall within the ambit of a joint employment relationship, such as franchisor-franchisee and contractor-subcontractor relationships. Finally, the Department will allow potential joint employers to provide quality control standards and policies without making it any more likely that the Department will determine a joint employment relationship exists.
The rule goes into effect on March 16, 2020, but it will not affect the definition of joint employer or change the standards of liability in the context of other federal or state statutes, such as Title VII.
For more information on the new rule and what it means for your business, contact Josh Goldberg at 503-276-2107 or firstname.lastname@example.org.
Electronic Alerts are written by Barran Liebman attorneys for their clients and friends. Alerts are not intended as legal advice, but as employment law, labor law, and employee benefits announcements. If this has been forwarded to you, and you would like to begin receiving Electronic Alerts directly, please email or call Traci Ray at 503-276-2115. Copyright ©2020 by Barran Liebman LLP.
Las Alertas electrónicas son escritas por abogados de Barran Liebman para sus clientes y amigos. Las Alertas no son proveídas como asesoramiento legal, sino solo como anuncios de leyes de empleo, leyes laborales y beneficios de empleo. Si esto ha sido remetido a usted y quisieras empezar a recibir las Alertas directamente, por favor mándanos un correo electrónico o llama a Traci Ray al 503-276-2115. Derechos de autor ©2020 por Barran Liebman LLP.