Using a temp firm doesn’t absolve a company of its responsibility to comply with the Fair Labor Standards Act, according to Bill Pokorny of Franczek Radelet in Chicago. “At any given time and for any given employee, there may be multiple entities that qualify as ‘employers’ of that employee,” Pokorny writes in a recent blog post, citing a new administrative interpretation released by the Department of Labor, which defines “employ” as “expansive.” Here are some of the most important considerations when using temporary, contract, or leased workers, especially in light of this new definition:
• It’s the employer’s responsibility to ensure everyone is properly paid. “Employers can be liable for a vendor’s screw-up,” explains Pokorny. He warns employers to pay attention to business partners and choose well-established employment firms with excellent record keeping, even if it means paying higher rates.
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