Real Attorneys. Real People. Real Results.
Real Attorneys. Real People. Real Results.
The U.S. Department of Labor recently proposed a new rule clarifying when multiple companies may be legally responsible for workers under federal labor laws. Below are answers to common questions workers ask about joint employer liability.
Joint employer status means that more than one company may be legally considered your employer.
This can happen when one company officially hires you, but another company also controls important parts of your job, such as your schedule, pay, job duties, workplace rules, hiring or firing decisions.
If multiple companies control your employment, both may be legally responsible for labor law violations.
Yes. This commonly happens in industries that rely on staffing agencies, franchises, subcontractors, delivery networks, security contractors, and healthcare staffing companies. For example, you may receive your paycheck from one company while another company controls your day-to-day work.
The proposed rule from the U.S. Department of Labor creates a clearer framework for determining when companies share employer responsibility. The rule focuses on whether a company hires or fires workers, controls schedules, determines pay, and maintains employment records. These factors may help courts determine whether multiple employers are legally responsible.
Perhaps. If more than one company controlled your employment, you may be able to pursue claims against all responsible parties for unpaid overtime, wages, mileage reimbursement, misclassification issues, and other wage violations. Every case depends on the specific facts.
Not necessarily. The proposed rule suggests that simply being part of a franchise company does not automatically create joint employer liability. However, if the franchisor directly controls workers, liability may still be possible.
That depends. If a company improperly labels workers as independent contractors while still exercising employer-like control, legal claims may exist. Worker classification issues can overlap with joint employer disputes.
Joint employer disputes frequently arise in delivery services, security companies, restaurants, construction, warehousing, healthcare staffing, and hospitality.
This is one reason joint employer claims can be important. If a smaller employer cannot pay wages owed, a larger company involved in controlling workers may also be held responsible.
You may want to contact an attorney if another company controlled your schedule, you worked through a staffing company, you believe you were underpaid, or if multiple companies managed your job duties. An attorney can review your employment structure and determine whether multiple companies may be liable.
At Forester Haynie, our experienced team of attorneys can help you navigate the complexities of the law. If you believe multiple companies may be responsible for unpaid wage or labor violations, contact us for a free case evaluation.
Contact Us