Jeffrey H. Ruzal, a Senior Counsel in the Employment, Labor & Workforce Management practice, in the firm’s New York office, authored an article for the Georgia Society of Certified Public Accountants Professional News Section titled “DOL’sContinued Expansion of Worker Coverage Remains a Top Wage and Hour Concern.”
Following is an excerpt:
The new Interpretation explains that there are two types of joint employment on which the DOL will focus: horizontal and vertical relationships. Horizontal joint employment exists when an employee has employment relationships with two or more related or commonly owned businesses. In assessing horizontal joint employment, the DOL focuses on the relationship between the businesses, not the workers. The DOL explains that a horizontal joint-employment relationship may exist in situations when: (i) employers share an employee’s services, (ii) one employer acts in the interest of the other employer in relation to the employee, or (iii) one employer controls the other employer and therefore shares control of the other employer.
Vertical joint employment exists when a worker provides services to one company while being formally employed by a third party, such as a labor supplier. To determine whether joint employment exists, the DOL analyzes whether an employee of one business, the labor supplier, is economically dependent on another business that utilizes the labor supplier’s employee.
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