Recent Changes to Joint Employment

Earlier this year, the Trump administration began rolling back policies that were implemented during the Obama administration. Some of these policies benefitted the employee who at one time, was being paid by two employers. Recently, Labor Secretary Alexander Acosta rescinded the Obama-era definition of what is considered a “joint employee”.

A ‘joint employee” is an employee who is under the control, supervision and often paid, directly or indirectly, by more than one employer. It is important for employees and employers alike to know the status of the employee. The status dictates what the company is responsible for providing to the employee with regard to employee benefits under applicable law.

For instance, under the Fair Labor Standard Act (FLSA), an employee is entitled to minimum wage and the employee falls under a specific exception, is entitled to paid-time and a half for any hours that exceed forty hours in a given week. Under the Obama administration, joint employers were held jointly liable for complying with the FLSA. Although many employers were critical of the policy, it was generally seen as a policy that helped the employee and favored by the average worker. Due to the new administration’s push to change the definition, this may policy may change in the near future.

If you are a person who is often employed by more than one employer, it important to know your rights and know what your employer(s) must provide you. We are happy to answer any questions you may have about your rights.