Recently, the National Labor Relations Board has expanded the definition of joint employment, particularly as it relates to franchisers and franchisees. The U.S. Labor Department also issued joint employer liability rules in January 2016. The impact across all types of industries is enormous, particularly restaurant chains and construction companies. As more and more corporations utilize staffing agencies, temporary workers and contractors, the potential for joint employer liability is to be taken seriously.
Before, the standard for joint employment required an employer to have direct and immediate control over employees to be considered an employer. But the Browning-Ferris NLRB case changed this long-standing standard. Instead, the modified joint employer standard looks at whether control is direct, indirect or a reserved right to control, even if that right is never exercised.
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