Joint Employment
Definition
A legal situation where two or more entities share control over a worker’s employment.
What is Joint Employment?
Joint employment exists when an employee is employed by two entities simultaneously, and both may be held liable for compliance with labor laws. This is common in staffing agency arrangements or when working with contractors.
Why is Joint Employment Important for Employers?
- Employers could be liable for each other’s FLSA violations
- May increase risk for wage and hour claims
- Critical to consider when outsourcing HR or labor
FAQs
When does joint employment typically occur?
Joint employment arises when two or more businesses share control over an employee’s work or employment conditions, such as in staffing arrangements or through a PEO.
Why is joint employment significant for compliance?
Because both employers may be held liable for wage, hour, and labor law violations.
How can businesses protect themselves in joint employment situations?
By clearly defining responsibilities in written agreements and ensuring both parties maintain compliant labor practices.
How ExtensisHR Can Help
As a PEO, we reduce your joint employment risk by:
- Clearly defining co-employment responsibilities
- Maintaining compliance with FLSA, OSHA, and benefit laws
- Supporting legal defense in joint employment disputes