On Wednesday, January 20, 2016, the Department of Labor’s Wage and Hour Division released guidance on joint employment: the increasingly common situation of a worker having two or more employers who are simultaneously responsible for complying with labor law.
The following is a statement by National Guestworker Alliance Director (NGA) Executive Director Saket Soni:
“Today’s guidance by the Department of Labor’s Wage and Hour Division is an important step toward protecting some of America’s most vulnerable workers. As division administrator David Weil points out, it is becoming more and more common for businesses to source workers through temporary staffing agencies and independent contractors, in fields including construction, agricultural, janitorial, distribution and logistics, staffing, and hospitality.
“When these workers face labor abuse, staffing agencies try to shift the blame up the chain, and the employers on top try to shift the blame down, each claiming they’re not the ‘real’ employer. The result is that abuse goes unpunished, and wages and working standards fall for all workers.
“Today’s guidance clarifies that in joint employment situations like these, both employers are responsible before the law. As the guidance says, the Fair Labor Standards Act and Migrant and Seasonal Agricultural Worker Protection Act were specifically written to ‘prevent employers from using “middlemen” to evade the laws’ requirements.’
“With the rise of contingent work, this matters to every worker in America. When employers can evade liability for abuse by claiming they’re not the ‘real’ employer, wages and conditions fall for all workers. But when workers can hold their employers responsible, they can fight for better workplaces for themselves and those alongside them—the way that subcontracted NGA worker-members in Louisiana shipyards and New Bedford seafood processing plants are fighting right now.
“We applaud the Wage and Hour Division for issuing this important and timely guidance.”