What is the joint employer rule?

Under the FLSA, an employee can have more than one employer for the work they perform. Joint employment applies when – for the purposes of minimum wage and overtime requirements – the department considers two separate companies to be a worker’s employer for the same work.

What is a joint employer relationship?

A joint-employer relationship exists where an employee has two or more employers with respect to her work.

What is joint employer status?

Vertical joint employment exists when a worker has an employment relationship with one employer (typically a staffing agency, subcontractor, labor provider or other intermediary employer), another employer receives the benefit of the worker’s labor, and the worker is economically dependent on and thus employed by the …

How does the FLSA define an employee?

The Fair Labor Standards Act (FLSA) only covers employees. The FLSA defines employee as “any individual employed by an employer” and employ is defined as including “to suffer or permit to work.” The concept of employment in the FLSA is very broad and is tested by “economic reality.”

What is the difference between co employment and joint employment?

Co-employment and joint employment are not the same, largely because of workforce management. In a co-employment arrangement, only one party makes labor-related decisions, but in joint employment, both parties have input on wages, hours, new hires, terminations, etc.

What is an example of a joint employer?

A quintessential example of joint employment arises when corporations use temp staffing agencies to hire their workers. A corporation contracts with a temp staffing agency to hire employees who perform work for the benefit of the corporation. The temp staffing agency is the employer of record.

What is the difference between co-employment and joint employment?

Is dual employment legal in USA?

Under the Fair Labor Standard Act of 1938, two or more employers can employ an individual employee at the same time, as the Act does not prevent an employee from having more than one employment relationship at the same time.

What are the FLSA categories?

Here are basic definitions you need to know to understand salaried, hourly, exempt, nonexempt, and salaried nonexempt employees. Except where noted, these employee classification definitions come from the U.S. Department of Labor.

Is joint employment legal?

Nope. Joint employment is not against the law. Nor is it necessarily a problem. Joint employment becomes a problem for a secondary business only if the direct employer fails to fulfill its legal obligations.